Grand Lake couple forced to halt house raffle

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Mar
14
2009

Grand Lake couple forced to halt house raffle

Jim and Becky Poe hoped to organise a raffle to give away their lakefront home in Grand Lake in the US state of Colorado. After selling between 3,500 to 4,000 tickets at $101 each, the couple planned to carry out the draw on July 11.

After paying off the house loan and any costs associated with the drawings, they planned to give away any money left over to charity. Unfortunately, in what is becoming a familiar story, the couple were contacted by the district attorney's office a few weeks after starting the property raffle, requesting that they stop promoting the scheme as soon as possible.

Despite not seeking to make a profit from the raffle, the couple were informed that the promotion was not deemed legal due to local gaming laws. According to Beckie Poe,"We thought we were safe because we weren’t going to make a profit. We did our research.”

The disappointed couple have since been forced to close their raffle and start refunding people."There are drug dealers and thieves walking the streets and the district attorney’s office wants to ban us from having a drawing,” Poe said.

She goes on to highlight in this interview on NewsOK.com that people need to be aware that they can be charged if they operate an illegal lottery, raffle or drawing in the US. According to local regulations, the property can be seized and forfeited and the money would be disbursed to schools.

While local regulations vary from one country to another, homeowners are being confronted with similar obstacles with respect to property competitions around the world. With limited guidance available to help distinguish the boundaries between illegal lotteries and prize competitions, homeowners should seek advice before considering running a property raffle or sweepstake.

If you have come across similar stories in your country, please let us know. In the current environment, should governments be made to clarify better legislation on this issue? Alternatively, you may consider that the law in your country provides reasonable guidance on this topic; in which case we would be interested to hear from you.

In the meantime, click here to read the full article on NewsOK.com.

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Re: Grand Lake couple forced to halt house raffle
So unfair... I keep on reading similar stories in the UK and US... Why is it so often that law-abiding homeowners who are just trying to find a solution to their situation are made to pay the price for the lack of clarity on these issues?
Brenda , 15 Mar 2009

busy