I have a client that would like to start a business that is essentially a consolidator site for online shoppers. The main differentiator is that customers who make a purchase online will have the opportunity to win back the value of their transaction via a daily online raffle. This client is registered as a Nevada C Corp (not a non-profit/charitable organization), and will donate X% of revenues to an unspecified charity organization. I would like to know if this client will be required to adhere to state-by-state lottery/sweepstakes laws or whether there are any licensing requirements needed for any online raffles/sweepstakes/lotteries conducted.

Thanks & Kind Regards.

Sweepstakes, raffles and other gaming activities are highly regulated and must be planned out carefully to comply with all the various legal requirements. Raffles are subject to both federal and state law, so for a national raffle it is possible that the sponsor will have to comply with federal law as well as every state's laws. Each state's laws vary with regard to what activities are considered regulated activites, what activities are outright prohibited, and what elements must be included in the activity. Failure to comply with the various requirements could result in serious consequences, not only for the company sponsor but also for any promoters.

I suggest your client speak to an attorney regarding the various legal issues including licensing, prohibited activities, false and deceptive practices, bonding, and other matters. You can find more information about an attorney through the attorney locator service on LawInfo's home page at: http://www.lawinfo.com/.

Thank-you for the prompt response. I will forward this information to my client.

You're welcome. Good luck and keep us posted!