Legallity of a listener contest.

[GFBurke]

What is the name of your state: ID.

(not even sure if this is the proper section - sorry)
--

I'd like to give away an item that has a value of around $280.
We get donations currently with a "$1 and $5" paypal donations. I was thinking of "if you make a donation of any amount within these dates OR buy from our shop, you get entered in the contest to win this item".

I am a business because we do make revenue. Other than claiming the donations during tax time, is there anything els wrong with doing this? Or do I need to word this differently? My "assumption" without knowing law, it that I would have to also make a "no purchase necessary method" as well (as in send in a physical card with contact info) thus making it "free".



Thanks.

_________________
AllThingsThatFly.com

[FlyingRon]

Donation? You're not a charity.
Sounds like an illegal lottery.

18-3801
"Gambling" means risking any money, credit,
deposit or other thing of value for gain contingent in whole or in part upon
lot, chance, the operation of a gambling device or the happening or outcome of
an event,

18-3802. GAMBLING PROHIBITED. (1) A person is guilty of gambling if he:
(a) Participates in gambling; or
(b) Knowingly permits any gambling to be played, conducted or dealt upon
or in any real or personal property owned, rented, or under the control of
the actor, whether in whole or in part.
(2) Gambling is a misdemeanor.

[GFBurke]

Yeah. Every podcast allows donations (it's how we all pay for podcast services).

So there is no way to make this happen even if "no purchase necessary" is an option?

Clouds over Texas, Georgia and Minnesota
At the federal level and in virtually all states, the availability of a free, alternate method of entry (i.e., sending in a postcard is almost universally accepted) eliminates consideration as an element of an illegal lottery. The three exceptions are Texas, Georgia and Minnesota where long-standing opinions by the attorneys general of those three states have taken the position that if only one person makes a purchase to participate in the contest, it is an illegal lottery. This is true even where there is a free, alternate method of entry. While this might make some sense for a non-profit contest, where the expectation is that many participants will contribute, it makes little sense for a sweepstakes conducted by a commercial seller of goods or services. However, based on observing a number of online sweepstakes, it would seem to be extremely rare for an Internet contest to involve the purchase of anything in order to participate - almost all Internet sweepstakes merely require signing up.

Found here: [url]http://www.wileyrein.com/publication.cfm?publication_id=11448[/url]

I guess asking a legal question and receiving a text book answer may not be the best thing. Much like "can I rip a DVD to my PC ?" "No, because your breaking the law". But this would not be an answer for Fair use.


But thanks though.