What About Raffles?

In addition to adhering to postal prohibitions, I always thought that it was not a good idea to promote a raffle or illegal lottery and that "prize, consideration and chance" defined such activities, even if there was a "good cause" involved. But more and more I am seeing these in newspapers and on newspaper websites. Even the teller at my bank is offering to sell me a chance to win a house (as part of a charity raffle).
Has the law been liberalized and I missed it? Is it OK to "give" a prize that involves someone having to pay for a chance?

I took your question to Jim Ewert and here's what he said:

Quote :

No, the law has not changed. Lotteries, which contain the three elements you cited, are still illegal in CA unless conducted by a charitable organization that is registered with the CA Dept. of Justice. You may be seeing more of these promotions because the operators are unaware of the law or they are taking a calculated risk that the likelihood of enforcement may be slight where the promotion is taking place. To avoid liability, most promoters will eliminate one of the elements, most often "consideration," which is why you see the phrase "No purchase necessary" in fine print at the bottom of the promotion. Please note that an advertisement for an illegal lottery is a misdemeanor under the state's Penal Code.

I hope that answers your question!

As strange as it sounds - yes, a contest to name a newspaper mascot where there is a prize ($1000), chance (not everyone who enters will win the $1000 prize) and consideration ($10 entry fee) would be unlawful in California. If you don't charge the entry fee, the contest would be OK.