Camilla, GA asked in Tax Law, Gaming and Gov & Administrative Law for Georgia

Q: Sell item with receipt enter for a drawing for a camper

Have individual purchase knife for $50, enter contact info on receipt for a drawing for a camper. 350 knives to sell and then hold live drawing for winner. Would be receiving an item (knife) and could enter if choose for camper? So not a raffle because purchasing an item, not a lottery since purchasing an item and can only enter with receipt so cannot play for free.

Would this cover as far as legality of it

1 Lawyer Answer
James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA

A: Based on the scenario you described, there are a few potential legal considerations to keep in mind:

1. Lottery laws: Even though the participants are purchasing a knife, the opportunity to win a camper could still be considered a lottery if it involves the three elements of prize, chance, and consideration. The fact that the knife purchase is required for entry may be seen as consideration.

2. Sweepstakes laws: If the knife purchase is not required for entry and there is an alternative free method of entry (AMOE), it might qualify as a sweepstakes. Sweepstakes laws vary by state and have specific requirements, such as providing official rules, odds of winning, and other disclosures.

3. Gambling laws: Depending on the state, this type of promotion could be considered illegal gambling if it is determined that the knife purchase is primarily a means to enter the drawing for the camper, rather than a genuine sale of a product.

4. Consumer protection laws: It's important to ensure that the promotion is not misleading or deceptive, and that all terms and conditions are clearly disclosed to participants.

To ensure the legality of the promotion, it would be best to consult with a local attorney specializing in promotional and gaming law. They can review the specific details of your plan and advise you on how to structure it to comply with applicable state and federal laws.

Keep in mind that laws regarding lotteries, sweepstakes, and gambling can be complex and vary by jurisdiction, so it's essential to get professional legal advice before proceeding with such a promotion.

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