Starting Online Lottery

[space_cowboy]

From Florida, web site hosted in California (I believe).

Is it legal to operate my own lottery? Visitors would pay 3 dollars, 2 dollars would go into the jackpot, after credit card processor fee, I keep the rest. Pay a winner $1000.00 when the money is there.

Is this legal?

If not, can I make it legal i.e. giving away prizes or gift certificates?

Thanks!

 

[Some Random Guy]

lotteries, sweepstakes, raffles and games of chance are heavily regulated by each of the 50 states individually. I suggest researching FL law and limiting online players to be FL residents. I suspect that you will find it nearly impossible to do this legally.

 

[Victor Cooper]

From Florida, web site hosted in California (I believe).

Is it legal to operate my own lottery? Visitors would pay 3 dollars, 2 dollars would go into the jackpot, after credit card processor fee, I keep the rest. Pay a winner $1000.00 when the money is there.

Is this legal?

If not, can I make it legal i.e. giving away prizes or gift certificates?

Thanks!

Yeah, each state has different laws than other when it comes to online gambling and as you are thinking of starting an online lottery site, I would too suggest you to check out the laws of your concerned state to get a clear idea.

 

[FlyingRon]

I don't know why someone in California should give a hoot about Florida laws but here it is:

849.09 Lottery prohibited; exceptions. —
(1) It is unlawful for any person in this state to:
(a) Set up, promote, or conduct any lottery for money or for anything of value;​

It's a misdemeanor on the first offense and a felony thereafter.

California is even more straightforward, it's in the state Constitution:

Article IV, Legislative, Sec. 19.
(a) The Legislature has no power to authorize lotteries, and shall prohibit the sale of lottery tickets in the State.​

It's only a misdemeanor.

As pointed out many states have similar provisions barring individuals or corporations from conducting lotteries or other forms of gambling.

Further, it's against FEDERAL law to use interstate communication (telephone, internet, etc...) or the use of the postal service in conducting lotteries.

It matters not whether you pay out in cash or in some other form of valuable prize.

 

[quincy]

I don't know why someone in California should give a hoot about Florida laws but here it is:

849.09 Lottery prohibited; exceptions. —
(1) It is unlawful for any person in this state to:
(a) Set up, promote, or conduct any lottery for money or for anything of value;​

It's a misdemeanor on the first offense and a felony thereafter.

California is even more straightforward, it's in the state Constitution:

Article IV, Legislative, Sec. 19.
(a) The Legislature has no power to authorize lotteries, and shall prohibit the sale of lottery tickets in the State.​

It's only a misdemeanor.

As pointed out many states have similar provisions barring individuals or corporations from conducting lotteries or other forms of gambling.

Further, it's against FEDERAL law to use interstate communication (telephone, internet, etc...) or the use of the postal service in conducting lotteries.

It matters not whether you pay out in cash or in some other form of valuable prize.

This thread is from 2005. It was revived by Victor Cooper for reasons known only to him.

In other words, I think space_cowboy has either given up on his lottery plan by now, or he learned the hard way the laws that are involved in running an online lottery.

 

[FlyingRon]

Yeah, it looks like "she who shall not be named" deleted something off his post as well.. I missed the gap in the dates.

 

[Dalemart]

Starting-online-lottery

Hii folks,
I am quite new in gambling, so don’t know too much about this field but I agree with Victor Cooper that before starting the lottery site you should get the knowledge about the gambling related law of that state whether it is Florida or California.