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Illegal raffles could win you some jail time




“You never know what worse luck your bad luck has saved you from.” — Line spoken by Ellis Bell in the 2005 novel “No Country for Old Men”, written by Cormac McCarthy

 

A “raffle” is when persons buy chances to enter a drawing to win one or more prizes, with the winner(s) to be determined by a random drawing.

Under Tennessee law, however, raffles are illegal unless approved in advance by the Secretary of State’s Division of Charitable Solicitations and Gaming.

Q. Wait a minute — how can Tennessee law allow a lottery but not allow a raffle?

In 2001, the Tennessee Legislature defined the possibility of a Tennessee lottery as “gaming,” not “gambling,” and passed legislation to allow Tennesseans to vote whether to have a lottery.

In November 2002, Tennessee voters approved a statewide referendum to permit a lottery, and the Tennessee Education Lottery Corporation opened for business in January 2004.

Tennessee law doesallow certain charitable organizations to apply to have one raffle, reverse raffle, cakewalk or cakewheel each year if that event is conducted in accordance with the procedures set forth in the law.

Tennessee law does not allow bingo, poker games, pull-tabs, punchboards, video lottery games and casino-like games of chance.

Q. Who is allowed to hold a raffle in Tennessee?

Only a qualified 501(c)(3) or 501(c)(19) organization that has operated for five years, that has submitted an application to the Division of Charitable Solicitations and Gaming, and that has been approved by the Tennessee General Assembly by a two-thirds vote can hold one raffle per year.

Q. What happens if a raffle is held without State of Tennessee approval?

If the Secretary of State learns of an unauthorized raffle or other illegal gaming event, then the matter is referred to the local district attorney for investigation and criminal prosecution.

Q. What about March Madness office pools?

Technically those mainstream cultural happenings are illegal, unless proceeds are donated to charity and the organizer takes no “cut” or organizer’s fee.

Jim Hawkins is a Tennessee general practice and public interest law attorney. This column represents legal information, and is not intended to take the place of legal advice. All cases are different and need individual attention.  Consult with a private attorney of your choice to review the facts and law specific to your case. To suggest future column topics, call (615) 452-9200.

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