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- Jul 2, 2010
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I never realized how 'taboo' these things were. Guess I never put much thought into it. Great way to make a few bucks as long as there is enough people entering.
[disclaimer] I do have some knowledge of this topic because of past experience, but I'm not a lawyer. This is not intended to be legal advise. Etc.. [/disclaimer]
A raffle is considered gambling in the US, which leads to many issues and complications as to weather it is legal, what the tax implications are (winnings from gambling are considered taxable income), banking (can the account be closed, can money be seized, etc), and if it's not legal, who is on the hook.
I'm not involved with this, so I can't say what it is, but if it is a raffle it exposes the organizer, those that put money into it, and the company that runs this web site into a questionable legal position. If this isn't permitted under some special exclusion to the law (such as being run by a 501(c) organization), it's possible that all involved have violated federal law (for those in the US).
I've been stewing on an idea for the last couple days that could allow raffles and the like to be carried out legally. Though it wouldn't be for the point of making profit; though it could help to support this forum and the builders financially as well as provide value to the community. (For those that care, form a 501(c)(6) for the laser enthusiast community, you should be able to figure out the rest from there.)
I don't think the organizer would have entered into this if fully aware of the issues - assuming this is a raffle that is, and as I said, I couldn't say that as I'm not involved.