Law Info:
There is a variety of laws and opinions regarding internet raffles. Most of the information leads to the conclusion that it is unlawful to hold a raffle on the internet. Investigation has shown that:
1. Each state has its own Raffle laws. States where raffles are legal have their own separate rules and regulations for holding raffles. In states where raffles are legal some type of raffle license must be obtained from the pertinent state office.
2. Raffles are considered a form of gambling. Gambling is carefully monitored by state and federal regulations. The three basic criteria that satisfy the definition of gambling are: (1) a prize is awarded; (2) the winner of the prize is determined purely by chance; and (3) some consideration or payment is required to participate.
3. Although each state has its own raffle rules, if the "seller" were to hold an internet raffle it could be crossing interstate lines. For instance, in the state of Oklahoma, raffles are illegal. We cannot research and obtain a raffle license in each state. It would be impractical and non-cost effective.
We have contacted state raffle offices, the US Justice Department and researched the Internet. Although we have not found a written law saying specifically "no internet raffles," we have got enough information to conclude that it is illegal.