Legal Question in Technology Law in Illinois

Re: charity raffle outside US

In Illinois, a person commits gambling when he "sets up or promotes any lottery" or when he "knowingly establishes, maintains, or operates an Internet site that permits a person to play a game of chance or skill for money or other thing of value by means of the Internet ..." The fact that the site is hosted outside Illinois appears to be irrelevant if you are doing things in Illinois in violation of the law.

A raffle is an illegal lottery unless it is conducted in accordance with state and local laws, including the Illinois Raffles Act. Generally, that means you must obtain a raffle license before conducting the raffle and you must conduct the raffle according to the rules of the jurisdiction in which you are selling tickets. In most cases only not for profit companies will be able to obtain a raffle license. For profit corporations will usually not be able to get a license, even if the money earned is intended to be given to a charity.

You might consider forming a not for profit corporation to conduct the charitable activities but you should first become familiar with the laws governing charities in Illinois and any other jurisdiction in which you might solicit funds.

David K. Staub, Illinois business attorney