What is the best raffle strategy?

Setting up a site on the internet to raffle a used automoblie owned by me

• I have been thinking about setting up a web page to raffle off my truck in order to sell it. This web page would be simple with a bunch of pictures of the truck, a FAQ section, etc etc. The raffle tickets would cost $5 each and I would sell a fixed amount that would cover the cost of the truck plus any shipping charges. The money side would be handled through paypal. For every $5 "ticket" you buy, you get one # in return. When the total amount of tickets have sold, I would then pick a number randomly (through some sort of program) and the winner gets the truck shipped to them with full ownership. I did a quick search online and found no relevant sites like what I mentioned above. I also thought this might be a great idea for a business but a quick search at the patent office came up with this: http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=/netahtml/PTO/search-bool.html&r=2&f=G&l=50&co1=AND&d=PG01&s1=online&s2=raffle&OS=online+AND+raffle&RS=online+AND+raffle My question is that simply does this sound like something that might work? What would the legal and tax implications be? How would I want to protect myself? Any other suggestions you can make regarding this matter? Thanks!

• Answer:

  Hello and thank you for your question. Unfortunately you will find yourself in violation of law in any of the 50 states [if you are planning the raffle outside the US the answer is probably the same]. For example, "the Santa Clara County District Attorney's Consumer Protection Unit issued a public service alert to remind organizations they could be penalized for holding illegal lotteries, punishable by a $1,000 fine or six months in jail." SCS strictly complies with DA's guidelines for its annual fundraiser http://www.svcn.com/archives/sunnyvalesun/09.02.98/Raffle.html [If you read the above article you'll see that SCS is making the tickets 'free' in exchange for a 'voluntary' contribution--I wonder how the DA will feel about that!] And again, "The collapse of a projected $150,000 luxury car raffle could force USS Forrestal board members to put their money where their hearts are. The group canceled plans to give away a 2000 Jaguar S-Type worth $45,000 Tuesday after the attorney general's office advised them the giveaway was illegal." Forrestal's supporters drop illegal car raffle http://tampabayonline.net/reports/carrier/raffle2.htm Here's how Attorney Fox answered a similar question: "Raffles are regulated on a state-by-state basis. As you might already know, an illegal lottery is comprised of the following elements: prize, chance and consideration. Because, in a raffle, all three elements are present, raffles typically fall under state illegal lottery law. Many states allow raffles to proceed if they are sponsored by a nonprofit organization. Because all states laws differ, it would be important to analyze your states' lottery and raffle laws. However, generally speaking, [an individual's] raffle would probably violate state illegal lottery laws." Arent Fox Attorneys at Law http://www.arentfox.com/post/forum/csmessages/341.html Sorry to be the bringer of bad news, but that's the law. Google Search Terms Used: car illegal raffle Sincerely, richard-ga