Legal Question in Business Law in New York

I would like to start an online business where people can purchase tickets for a paticular item (TV, I-Pod, Camera.etc). I guess it's like a raffle but there is no money prizes just items. Is this legal and how would i go about setting it up?


Asked on 8/19/09, 10:02 am

1 Answer from Attorneys

Kaiser Wahab Wahab & Medenica LLC

Generally speaking, sweepstakes games may be acceptable, however their actualy mechanics vary between state and are governed by each state's laws. One of the major issues is whether the proposed giveaway is purely a "game of chance," for example a raffle that is purely random and does not involve the entrant's skill or input, versus "games of skill." The latter is generally a safer option in that it generally does not require state registration or complaince with other state rules. However, as I mentioned, each state is different and your site may have to be tailored on a state by state basis. Also, the specific mechanics of your site would have to be laid out and assessed against each state for viability.

I hope that is helpful and if you need to engage an attorney to consult you, please feel free to reach out to my office.

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Answered on 8/24/09, 10:33 am


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