QUESTION
What do I have to do to meet legal requirements?
Asked on Jul 19th, 2018 on Business Law - West Virginia
More details to this question:
My father and I want to start raffling off cars we are restoring. We are planning, since we’re are doing it in a raffling system, to donate 20% of our proceeds to charities such as Saint Jude’s children’s hospital. What else would we have to take in to consideration to make this a legitimate business.
1 ANSWER
Entering into a raffle, i.e. buying a chance to possibly win a prize, but losing your money if your raffle isn't chosen, is gambling, and is probably illegal in your state (I am not admitted to practice in West Virginia, but I'm pretty sure nonetheless). Sometimes states allow raffles for charity, but I would doubt they would allow it when only 20% of the proceeds are being given to charity. You should check with the State of West Virginia, but unfortunately I don't know what specific agency there would cover it.
Answered on Jul 19th, 2018 at 2:07 PM