Adventures in the Raffle Trade

A property raffle blog, following the progress of the raffle of ten glorious holiday homes in Spain by Scott's Hotel and Scott's Galilea. The project uses hotel vouchers to be competely legal and offer ticket and voucher purchasers the chance to participate for free in the holiday property raffle drawings.

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Location: Palma, Mallorca, Spain

Read this stuff and you'll know me.

Monday, November 13, 2006

But is it legal for USA citizens to buy tickets/vouchers?

According to our law firm in Washington, US citizens and residents may legally participate in the drawings. It's a technicality, of course, but we all know that that's what lawyers need to specialize in, but in this case because ALL of the money you pay us is applied to the hotel voucher, and NONE of it to the drawings, that means that what we are doing is giving away the properties, and that isn't prohibited.

In other words, you aren't gambling because you get full value for the hotel voucher. The drawings may or may not be an incentive for you to purchase a voucher (!) but just as any merchant anywhere may offer an incentive to his customers to increase sales, we are offering an incentive to people to increase our sales of the 150 euro hotel vouchers. The fact that one of them may win a 500,000 euro house is legally irrelevant; the real point is that you can't lose.

In any event, we are told that a) the new law is unlikely to stand -- it has lots of carve-out exceptions in it anyway, including poker, horse racing and lotteries -- since the Iowa congressman who sponsored it was doing so in order to protect the casinos operating in his state, and b) that there has been a heavy backlash against it from the 35 million Americans who gamble online. It seems that at the current moment it isn't being enforced (not that we look at that as anything meaningful). We went to a lot of trouble and expense to be legal, and it seems we are.

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