Although we are not lawyers or a legal enterprize, we wanted to make you aware of some of the issues surrounding hosting a lottery or raffle as a fundraiser. For the purposes of disclaimer, please remember that this page is presented as information only and that you will have to check with an attorney on your own to know if your raffle is legal or illegal.
State lottery laws can be violated as can gaming / gambling laws. Many states have exemptions for schools and non-profits but in many cases the circumstances are limited.
Why is this important? Because in many states, violating lottery or gaming laws is an offence punishable with a fine and jail time. (Source) This website indicates that a possible solution is to have a contest of skill rather than chance in order to avoid trouble.
What Should You Do?
Be diligent in your determination of legality. Do not take a chance on a lottery or gaming fundraiser unless you are sure that you, the PTA/PTO and the school will not face liability.
Use Google to further research Lottery and Gaming laws:
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