Legal Question in Business Law in Massachusetts

Business Contest

Hi:

My company is trying to promote business and we have been thinking about having a monthly contest for a $100 gift certificate. We would contact current & potential clients offering them a ticket at a chance to win the above prize if they send us drawings (we prepare illustrations for Patent Applications) to prepare. Apon receipt of new work order for drawings we would send them a ticket for the contest, we would prepare the drawings and invoice them at a later date.

In the state of Massachusetts would this be considered an illegal activity?

Would this be considered an illegal activity in any other state?


Asked on 4/05/07, 5:24 pm

1 Answer from Attorneys
Herbert Cooper Law Offices of Jameson & Cooper

Re: Business Contest

In general, gambling, including a lottery, is considered a monopoly of the estate, subject to certain limited exceptions, such as certain charity functions. A rough definition of a lottery would be awarding a prize based upon an entry which required some consideration or obligation on the part of the person entering the lottery. If absolutely nothing is required, other than requesting a ticket, and there is no charge for requesting a ticket, I don't think that would be considered a lottery. However, if a purchase of goods or services is required to enter, or a donation is required in the case of a charity, it would appear to be a lottery.

Any lottery not specifically authorized by the state will likely be in violation of state laws.

If you would like to discuss alternatives, please feel free to contact my office.

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Answered on 4/08/07, 4:36 pm


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