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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38910
Experience:  Retired (mostly)
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Hi, I want to know the law as it pertains to a for profit online

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Hi, I want to know the law as it pertains to a for profit online business that is gambling related? I understand that a typical gambling business is illegal but I've noticed that raffles for example where multiple people put up money but one one wins seem to be legal. What is the dividing line, e.g. criteria? Any advice regarding this?
The dividing line, as you put it, is that a raffle under California is illegal except where 90% of the proceeds of the raffle are used by a qualified charity -- and the charity must run the raffle. See Penal Code § 320.5(c).

Obviously, this business model cannot work for a typical gaming organization.

Hope this helps.
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