MacRaffle.com Shutdown

How is paying for a raffle ticket for a chance to win a prize not a form of gambling?

This guy is kidding himself. If you had ever been to the website before it was shutdown and read the FAQ, he admits to not knowing if MacRaffle.com is entirely legal and states several illegal operations taking place such as no purchase necessary to win and not donating a percentage of the proceeds to some form of charity. Apparently the charity situation has change but this was not the case as of August 2002.

I'm fairly positive the Attorney Generals office will find him guilty for illegal online gambling operations. They typically don't seize your personal belongings unless their fairly sure of some wrong doing.

No, I don't think MacRaffle.com was intentionally trying to scam people but I do believe they were entirely aware they were operating outside the law. Starting a business is all well and good but there's mountains of red tape to cut through before you can go and just start making money. Unfortunately MacRaffle.com felt that they could just cut to the chase and ignore any wrong doing. I think it's going to prove rather costly to the operators.
 
Yes, I am surprised they lasted as long as they did. There was not "game of skill" involved in what they did. Although they did say some monies was given to non-profits, it obviously was not enough to even register on his "open financial statement" he posted on his site.

He has so many things going against him, no chance he will return to the airwaves, at least as macraffle.com.

It's not something I'd want to be involved with, and why I turned down suggestions from board members to operate a "raffle" to raise funds for the site, it simply is illegal.

It will be interesting to see how it plays out. I am sure he is not sleeping well these days.

Admin
 
what were the prizes? What kind of math problems were they posing as their skill challenge?
 
The site sold raffle or lottery tickets for snazzy Mac products, like a 17" iMac, Powerbook G4, Apple Cinema Display, iPod's, etc. He sold tickets for $x.xx each and showed that 300 tickets would be sold for a given item. Once all tickets were sold, he would draw a name and that person would win. Some odds where 1 in 88, other 1 in 800. Either way, not the best odds, but much better than your state lottery.

If the product being given away was valued at $2000, the total tickets sold value was usually 3 times the amount of the product.

There was no "skill test" by any stretch of the imagination... no one knows where he pulled that information from. From what he said, I thought he meant that the "drawing" itself was a match skill, but, just pure luck in my opinion.

He had many things going against him.

1) He was profit, not non-profit
2) No Purchase Necessary contestants didn't have equal chance as purchase contestants
3) Said a percentage was going to charity, however he doesn't reflect that on his page now.

If his contest was a game of skill, he wouldn't need the no purchase necessary or charity catches he had. He also made statements on his website that he was looking for offshore locations to run his enterprise. Needless to say, he knew he was running an illegal lottery.

I think the money was too good for him to stop. If he had closed down shop even 3 months prior, he may have gotten away with it all. Everyone questions his "$35k" on hosting and development, which appears to be money he pocketed.

Nothing wrong with someone making money, but there is something wrong with someone making it illegally.

Admin
 
It will be interesting to see how it plays out. I imagine any raffle's NOT drawn he would be required to refund... but he might also have to refund the money of all raffles. I am sure he will be in a heap of dept out of this.

His site is down now... his attourney probably advised him to shut it down. His "letter" wasn't doing him much justice.

Admin
 
The Letter is up on the site again for all to read.

It seems odd that he didn't check up on these legal things sooner.

I feel sorry for the Guy...
 
I doubt you'd feel so sorry if you read the information on his site prior to it being shut down... how many people do you know that "have no clue" that write things that say in other words, "Although no states say that this sort of thing is legal, there is nothing saying it isn't legal" and "we are looking at taking out project offshores".

Hmmm....


Admin
 
Wether it is illegal or not I wanted to win! <p>I think the idea is as American as they come! I'm sure many people (myself included) wishes they had thought of this idea before (if it weren't illegal that is). <p>I know crap when is comes to these kind of laws but how much does one need to contribute to charities for it not to be illegal. I, personally, would have given 75-80% to charities leaving the rest for myself and anyone who might be helping me for; Upkeep, hosting fees, groceries, a new Mackie for my self ;) etc....
 
The problem is, giving 100% of it to charity it would have still been illegal. It was an illegal lottery. Even a non-profit could not get away with what he was doing, only under specific guidelines which are different from state to state.
 
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