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.
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