Are House Raffles Legal?


Most of us know that house raffles are legal in most states, however, this week I was asked this question:

Do you know  the logic or reasoning behind the law that makes it illegal to have a private entity hold a raffle and profit from its proceeds? And if you were to propose a bill to attempt to change the law, who would potentially be your opposition?

I don’t know for sure the logic behind the law that makes it illegal for a private entity to hold a raffle, but it is reasonable to me that there must be strict controls on raffles. Otherwise, the ticket buyer has little security that the ticket seller is legit. If individuals could hold raffles, imagine the possibility of  fraud, and the difficulty to police such raffles. “Ticket seller makes off with the raffle ticket proceeds without holding a drawing.” Or, ” Ticket seller never owned the prize”. Or, “Brother of owner of grand prize home wins the prize”!

And although ticket buyers participate  mainly to win the prize, they also buy tickets to help the cause. That is one reason a homeowner wants to choose a nonprofit, school, or church with a cause that tugs at the heart of ticket buyers. Fewer ticket buyers will risk their money on the price of a ticket to help the homeowner.  They want to feel that if they don’t win, they are at least helping a worthy cause–usually a charity.

Sorry to  the person asking the question. . . I think all states should allow house raffles, but I’m glad there’s a law that only allows qualified organizations to hold raffles. I believe your opposition in changing such a law would be the state attorney general. It might be best to consult an attorney on this one.

To your success,

Diane Giraudo-McDermott

Categories : Just the Tips

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What Others Are Saying:

“The book really does take you through the entire process. I feel like Diane holds your hand from beginning to end from qualifying the grand prize home to what happens after the drawing. I’m a homeowner and I’ve had difficulty selling my beautiful home. Now I know what it takes to sell my home in a raffle. I know exactly what type of nonprofit I need to partner with on my house raffle and what to expect. I’m excited to get started.”

-Karen L. Furguson, Homeowner in Tucson, Arizona

"Consulting with Diane by phone has been invaluable. Her knowledge on the subject of house raffles is enormous, and she has really given us a better understanding of the process as we move forward with our house raffle. She has been more than willing to take the time needed in answering all of our questions. After consulting with Diane, we feel we have a much better chance of putting together a successful house raffle and are excited about making it happen."

Chip Thompson, homeowner in Rehoboth, Delaware

"'I Sold My House in a Raffle' is an excellent example of creative marketing. The best marketers think "out of the box" and Diane shows that you can really sell your house in a raffle!"

-Ali Pervex, International Best Selling Author, 'Get Your Black Belt in Marketing', www.blackbeltinmarketing.com

“What a great marketing tool! This is a hot new method to get a property sold. My clients love this idea—I already have my first raffle house lined up. I’ll use Diane’s process to get and sell more listings.”

Jack C. Rosemary – California Real Estate Broker, 26 years experience

“I attended Diane’s workshop on February 27th, and she’s got it all together. Not only does she know how to pull off a house raffle but you can tell that she was a teacher because she knows how to convey the information. She broke the process into bite-size pieces and gave us exercises to complete so we were involved. Before anyone attempts a house raffle, they should attend Diane’s workshop–there’s more to it than one could imagine.”

-Ron Thomas, Real Estate Investor for 20 years, Albuquerque, New Mexico