eBay for Raffles

What is the name of your state (only U.S. law)? SC

Hi,

I had an idea a few months ago for a site that would allow for users to post items for not auction, but raffle, in a similar nature to that which eBay uses. The "seller" would post an item for say $1000 and then "bidders" would buy opportunities to win the item for say $1 each. When the item reached $1000 in bids, the raffle would then run, automated, and deliver the winner of the raffle. The "seller" would also be able to set a reserve - the minimum amount at which the raffle could run, so if the total amount of tickets had not gotten to 1000 within - say one month - the raffle could still happen at that reserve. And if the reserve wasn't met either, then all funds were returned... except, of course, the seller's deposit for listing the item (list fees, like eBay fees, would apply)... It can get more complicated than that, I'm sure, but that's the basic premise.

I put this idea out of my head soon after I thought of it because a half hour or so of research told me that this was more or less illegal, and I gave up on it...

Today at work it came up in casual conversation and now my whole office is encouraging me to see about getting this idea off the ground... that "there has to be some way... etc. etc."

So, that's my question...

IS THERE A WAY? AND HOW?

Anything you can offer would be appreciated - even if the answer is... it's not possible, you're wasting your time... just to get them off my back.

jschonhaut said:

Hi,

I had an idea a few months ago for a site that would allow for users to post items for not auction, but raffle, in a similar nature to that which eBay uses. The "seller" would post an item for say $1000 and then "bidders" would buy opportunities to win the item for say $1 each. When the item reached $1000 in bids, the raffle would then run, automated, and deliver the winner of the raffle. The "seller" would also be able to set a reserve - the minimum amount at which the raffle could run, so if the total amount of tickets had not gotten to 1000 within - say one month - the raffle could still happen at that reserve. And if the reserve wasn't met either, then all funds were returned... except, of course, the seller's deposit for listing the item (list fees, like eBay fees, would apply)... It can get more complicated than that, I'm sure, but that's the basic premise.

I put this idea out of my head soon after I thought of it because a half hour or so of research told me that this was more or less illegal, and I gave up on it...

Today at work it came up in casual conversation and now my whole office is encouraging me to see about getting this idea off the ground... that "there has to be some way... etc. etc."

So, that's my question...

IS THERE A WAY? AND HOW?

Anything you can offer would be appreciated - even if the answer is... it's not possible, you're wasting your time... just to get them off my back.

Click to expand...

**A: you need to read your state laws on lotteries, raffles etc. Just from the info provided, the scenario would be illegal.

state raffle laws

yep... i'm aware of those... and they're different for every state is my understanding

rafflefaqDOTcom/united-states-raffle-laws

so if i could find a way for someone in new york, montana, and oregon to participate, then there's texas and california, etc. that could still present a problem... I suppose I could set the site up to block ip addresses from those states...

As this would be a website, hopefully with a national base - or even international.... how do I work within all these individual laws specific to different regions? Or do I, as I said, block ip addresses from those with stricter policies?

jschonhaut said:

yep... i'm aware of those... and they're different for every state is my understanding

What are the raffle laws of each state? | rafflefaq.com

so if i could find a way for someone in new york, montana, and oregon to participate, then there's texas and california, etc. that could still present a problem... I suppose I could set the site up to block ip addresses from those states...

As this would be a website, hopefully with a national base - or even international.... how do I work within all these individual laws specific to different regions? Or do I, as I said, block ip addresses from those with stricter policies?

Click to expand...

**A: since you obviously chose not to follow the posting requirements, good luck with your website.

HomeGuru said:

**A: since you obviously chose not to follow the posting requirements, good luck with your website.

Click to expand...

Right at the top - it's obviously Hawaii!

Credit card transactions in such small amounts each would not even be worth processing due to the interchange fees, and double that if you plan to issue refunds if the reserve isn't met.

N00Bs are funny...



i've been pwned... not hawaii

jschonhaut said:

i've been pwned... not hawaii

Click to expand...

Wow, 1 down and only 50+ jurisdictions to go!

Good point!

swalsh411 said:

Credit card transactions in such small amounts each would not even be worth processing due to the interchange fees, and double that if you plan to issue refunds if the reserve isn't met.

Click to expand...

What if chances to win were sold in increments of 5 tickets, 10 tickets, 20 tickets, etc...

Then that would maybe make up for it...