Legal Question in Consumer Law in California

This is not my area of expertise, but I think you may have problems based on the first line of your question, "sells raffle tickets." It appears you want to run a contest to win a free Ipod or some other prize. You say that no purchase is necessary if you send in for a ticket, but charge a fee if you enter online. Basically, you are going to charge for the convenience of entering online. Like most contests, I am guessing you are going to hide the free entry option somewhere in the fine print. It is creative and may have a chance, but I would definitely cross your t's and dot your i's before moving on or you may be looking at criminal charges. I am not familiar with Facebook's policies, but you may want to run it by them too. Perhaps another attorney has a different opinion.

It is illegal to collect money for a game of chance, period. The reason the fast food companies and others can do what they do is because they give away all the entries. You get an entry when you buy a product, and you get an entry if you ask for one in the designated manner. Either way it is free. You don't get a discount on the product if you elect not to get an entry. The entry is a free gift. It's no different than a free car wash with fill-up, only there your odds are 1:1 and for the games the odds are less. When the payment is for the entry, it becomes illegal.