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RGMacEsq
RGMacEsq, Attorney
Category: Business Law
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Experience:  Licensed Texas General Practice Attorney
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Are small lotteries allowed in the US Example top prize of

Resolved Question:

Are small lotteries allowed in the US? Example top prize of EUR 1000? Is licensing or registration needed?
Submitted: 6 years ago.
Category: Business Law
Expert:  RGMacEsq replied 6 years ago.

RGMacEsq :

Thank you for using JustAnswer. I am researching your issue and will respond shortly.

RGMacEsq :

Generally speaking, no. That is, there are lotteries, but in every state that allows them they are run by the state.

RGMacEsq :

(not private entities)

RGMacEsq :

Now there are other gambling situations, such as casino based lotteries (such as "Keno") but you have to have a casino to do that.

RGMacEsq :

Otherwise, this would be a game of chance for money, and is illegal under every jurisdiction.

RGMacEsq :

I know this is probably not what you wanted to hear, but it's the law. I hope that clears things up anyway. If you have any other questions, please let me know. If not, and you have not yet, please select the "accept" button. If you do click "accept", or if you will in the future, please let me know so I can track these for my own reports and customer satisfaction stats. Thank you, XXXXX XXXXX good luck to you!

RGMacEsq :

Did that answer your question? Or did you need clarification of any matter?

Customer:

An American that I know told me that there all kinds of small lotteries in the US. They are legal, according to him, provided the the prize is low. If I understand you correctly, this is wrong? Not even small lotteries are legal even if they meet whatever criteria that might exist?

RGMacEsq :

There are small lotteries, but these are actually "raffles". They are subject to the jurisdiction where they're held. That is, there are 50 different laws for 50 different states. There is no one single law. And further, MOST of these (if not all) require that the entities putting the raffle on be a registered 501(c)(3) non profit institution.

RGMacEsq :

If the proceeds benefit anything other than a registered, 501(c)(3) non profit institution, in almost all (if not all) situations those would be illegal games of chance.

Customer:

Thanks

RGMacEsq :

My pleasure. If you have any other questions, please let me know. If not, and you have not yet, please select the "accept" button. If you have already clicked "accept", or if you will in the future, please let me know so I can track these for my own reports and customer satisfaction stats. Thank you, XXXXX XXXXX good luck to you!

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