I'm hoping I can explain and have the majority of my questions answered with concrete evidence/examples. I have drafted a business plan regarding an online "raffle" website. I have the capital and time to do so, I am simply stuck with some legal problems.
The website would allow users to post items at a designated price, sell "raffle" tickets, and have a drawing for the winner once the price point is hit.
Due to the Raffle Act, conducting such a business in the USA is illegal unless it is affiliated with a non-profit. While I would love to create my own non-profit and give to various charities, I believe your non-profit has to have been established for 4 years before it can run raffles/drawings.
Obviously online gambling has stayed strong by keeping operations overseas while still allowing citizens of the USA to participate.
Here are my basic questions at this time:
1) If the business is located overseas, will there be anything prohibiting US citizens from posting or buying items?
2) If the business is located in the European Union, will there be anything prohibiting european citizens from posting or buying items? I believe their laws regarding online gambling/games of chance are different.
3) If the two scenarios above cause problems, would it be possible to do the following to avoid legal issues...
John Doe wants to sell his 2001 Ford Mustang for $5,000
A contract to purchase the vehicle for $1 is listed on the website
Raffle tickets for the contract are sold until $5,000 worth of tickets have been sold
The drawing is held and a winner is chosen
The winner, who actually purchased a contract, then purchases the vehicle for $1
Would this solve any of the potential legal issues? Any help would be appreciated...Thanks.
The website would allow users to post items at a designated price, sell "raffle" tickets, and have a drawing for the winner once the price point is hit.
Due to the Raffle Act, conducting such a business in the USA is illegal unless it is affiliated with a non-profit. While I would love to create my own non-profit and give to various charities, I believe your non-profit has to have been established for 4 years before it can run raffles/drawings.
Obviously online gambling has stayed strong by keeping operations overseas while still allowing citizens of the USA to participate.
Here are my basic questions at this time:
1) If the business is located overseas, will there be anything prohibiting US citizens from posting or buying items?
2) If the business is located in the European Union, will there be anything prohibiting european citizens from posting or buying items? I believe their laws regarding online gambling/games of chance are different.
3) If the two scenarios above cause problems, would it be possible to do the following to avoid legal issues...
John Doe wants to sell his 2001 Ford Mustang for $5,000
A contract to purchase the vehicle for $1 is listed on the website
Raffle tickets for the contract are sold until $5,000 worth of tickets have been sold
The drawing is held and a winner is chosen
The winner, who actually purchased a contract, then purchases the vehicle for $1
Would this solve any of the potential legal issues? Any help would be appreciated...Thanks.