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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118809
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am currently writing a business plan for a service that buys

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I am currently writing a business plan for a service that buys Pennsylvania Lottery scratch-off tickets and/or Powerball tickets for users. I understand that there are some legality issues associated with such a service. Initially, I will keep the business to within the state of Pennsylvania to avoid any transportation of lottery tickets between states. As far as the business model is concerned, how can I legally charge the users for this service? Can I charge them a percentage of the ticket cost or perhaps a percentage of the winnings? Or do I have to keep the charge to a flat fee to avoid being considered a third party? I want to run a business that's completely legit.
If you charge any fees for the service, you would be in violation of the PA lottery rules that allows only those licensed by the PA lottery to sell tickets. You could charge a percentage of any winnings, but that would not really make you the money you are seeking from your business. The reason you do not see many people doing this frequently is that selling lottery tickets without a license is a violation of the PA laws (and technically what you are doing is buying and reselling- buying for another party for a fee).

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Customer: replied 4 years ago.

Thanks for your response. A few people I know have told me that they would purchase lottery tickets more often if they didn't have to go out of there way. This is where I came up with the idea that someone tells me what ticket they want to buy and gives me the money for that ticket. I buy the ticket for them and mail it to them. I charge for my services of physically buying the ticket with their money and sending it to them. Does this still make it illegal since I am not technically "reselling" any tickets. If so, how do websites such as get around this law - or are they in voilation of the law? Thanks.

If you notice they are charging only for certain lotteries and are not offering others. They can charge for the service of buying the national lotteries, but when they get into local state lotteries they run afoul of the state gambling and lottery licensing laws.
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