Raffles and other games of chance are very strictly regulated on both a federal and local level. It would be in your best interests to call your attorney general’s office and get an OPINION (they won’t give you specific legal advice) BEFORE you do anything. The penalties are usually STEEP.
It is prohibited in North America to organise a raffle for profit. The sole exception is a regulated gaming institution, such as a casino, where the game is played on-site.
You must be recognised as a nonprofit organisation and have a permission, which includes publishing and accounting for the winners (since awards are taxable in the United States), the amount of ticket sales, and costs. These are audited, so you can’t just declare yourself a charity and make money.
The “numbers” racket was the conventional method used by organised criminals to accomplish this. It was a daily lottery, with the winning number drawn at what looked to be random (the money bet on a horse-racing track). Only that “random” number was manipulable. The many daily “Pick 3” games that several state lotteries run are the legal successors to these.
Prohibited gaming certainly exist, but it is illegal and attracts the notice of the authorities. The biggest danger here is that if you win, the lottery’s operators are criminals who may not pay you. You won’t be able to sue them since they have more money and, as criminals, are likely ready to abuse the law to secure your quiet and collaboration. Sure, it may jeopardise their reputation, but these are the types of individuals who would resort to violence or the threat of violence to secure your quiet.
“Here’s $100, now go home and close your trap before we close it for you,” says the gangster.
“Hey, I won the Numbers game yesterday,” you say. “Here’s my slip; please give me my $10,000.”
