Raffle question

Patolagola

Hi all, Hope there is someone here that can shed some light on this for me.

A friend of mine " like many others " was looking at ways to sell his house and get a return on it, he came up with the brain wave to hold a raffle and sell tickets at 50 euro a pop but not hold the raffle till he sold enough tickets to cover all the legal costs, whats left on his mortgage and some profit to leave the country......

While he was looking into going about it he found out its not legal but yet its legal for clubs, social groups, pubs, charity's and so on to hold raffles!

Then it dawned on us that news papers and telly does it, like the TV3 text to enter a draw which they make money from every text.

Newspapers do it with entry forms or text draws.


So my question is how can TV3 or newspapers hold a draw "raffle" and make a profit from it but yet its illegal for Joe soap to do it?

Farcear

Raffles are illegal -- i.e. contests which are 100% pure luck or chance.

Contests of skill and judgment are not illegal -- i.e. add a (simple) question to the raffle ticket and it's no longer a luck-based raffle but a contest.

That's how they and other clubs / societies get away with it.

Patolagola

Farcear wrote: »

Raffles are illegal -- i.e. contests which are 100% pure luck or chance.

Contests of skill and judgment are not illegal -- i.e. add a (simple) question to the raffle ticket and it's no longer a luck-based raffle but a contest.

That's how they and other clubs / societies get away with it.

So if raffle tickets were sold with a multiple choice question like what is 5 - 2, tick a,b,c,d to be in with a chance?

Thats legal?

BrianD

Patolagola wrote: »

So if raffle tickets were sold with a multiple choice question like what is 5 - 2, tick a,b,c,d to be in with a chance?

Thats legal?

Possibly, but you would need to have clear terms and conditions in place that describe the scenario that you would use. You'd also have to return the payments if you didn't meet the minimum amount you have decided. However, you would probably have to pay the costs of the promotion up front, the solicitor fees and so on which would presumably come from your ticket sales. So there's a chance you would have spent the money that you have taken in from ticket sales. All ticket sales would have to be held separately.

Leave punters out of pocket and you will probably end with your house on fire!

Farcear

Patolagola wrote: »

So if raffle tickets were sold with a multiple choice question like what is 5 - 2, tick a,b,c,d to be in with a chance?

Thats legal?

Basically.

Although, I would question whether a question *that* simple qualifies the competition as having an "element of skill".

Patolagola

BrianD wrote: »

Possibly, but you would need to have clear terms and conditions in place that describe the scenario that you would use. You'd also have to return the payments if you didn't meet the minimum amount you have decided. However, you would probably have to pay the costs of the promotion up front, the solicitor fees and so on which would presumably come from your ticket sales. So there's a chance you would have spent the money that you have taken in from ticket sales. All ticket sales would have to be held separately.

Leave punters out of pocket and you will probably end with your house on fire!

That I understand..

So which department of the law would I have to contact about holding a contest?

viclemronny

Afaik, yes.

As a brief aside, he's going to have to sell a fair few tickets and promote it very well. However, he might be better saying that whatever he sells over what he needs to cover costs will be donated to a charity. That way, he'll find an easier time of clearing his debt. Granted he won't make a profit per se, but he'll be clear of a debt. Plus, he can count the mortgage payments he makes between now and when he sells it, in say a year, as part of the cost. That way he'll have a bit of cash.

Farcear

Licence application from local Garda (certain level of seniority required but can't recall off-hand).

Seriously though, you need to start calling solicitors for quotes immediately before you do anything on this. Especially as there is a mortgage in place.

Patolagola

viclemronny wrote: »

Afaik, yes.

he might be better saying that whatever he sells over what he needs to cover costs will be donated to a charity.

Why?

Patolagola

Farcear wrote: »

Licence application from local Garda (certain level of seniority required but can't recall off-hand).

Seriously though, you need to start calling solicitors for quotes immediately before you do anything on this. Especially as there is a mortgage in place.

Yeah thats understood, Its only in the research stage now. But legal advice is the next stage!

Also what if he sels tickets out side the local area, will he need the licence from stations in different areas?

viclemronny

Patolagola wrote: »

Why?

Charity sells better than him wanting money to move away with.