A lot of lotteries are done for charity, whether it’s for a church, a school or a local sports team. Everybody enjoys the thrill of getting the result, be it the xsmb results this week in Vietnam or the Powerball lottery in the United States. They are an excellent way to raise funds, however, there are some strict legalities that must be adhered to if you are looking to start your own lottery. Here are the essentials to help you run a lottery without you or your organization getting into hot water.
What is a Lottery?
If you are using a lottery program as a fundraiser, you are talking about a personal lottery. In other words, a lottery that is run by an organization as opposed to the government.
A lottery in this sense is a form of gambling in which people purchase tickets to give them a chance of winning a large sum of money (or a prize). The chances of winning are of course determined randomly.
In many countries, including the United States, personal lotteries are prohibited. Only the government, not individuals or private companies, is legally allowed to run lotteries.
The Legalities of a Lottery
In the United States, a combination of state and federal law dictates the rules regarding lotteries. This means that you may not be legally able to run a lottery in your state at all, and if you are the legal requirements will vary depending on where you are located.
Luckily, lotteries are only banned in 3 states: Alabama, Hawaii and Utah. So if you’re not in these three states, you can check the lottery rules for your state by running a google search for “lottery laws” + your state.
Depending on your state laws, you may also need to register your lottery ahead of time, and you may only be able to hold a certain number of lotteries per year.