Also known as: raffles · raffled · raffling · lottery
Written by attorneys · grounded in primary & secondary sources — see below
A form of lottery in which each participant buys one or more chances to win a prize.
Raymond Ramos purchased raffle tickets from Rising Sun Electronics and won a cash prize. When he later sought financing, the lender treated his right to receive the winnings as an account under Article 9. The security agreement attached to that right because it qualified as a monetary obligation arising from a game of chance.
Rosalind Reed agreed to buy raffle tickets for a cruise aboard the ship Peerless scheduled to depart in October. Roberto Reyes offered identical tickets for a different vessel also named Peerless departing in December. The parties' mutual misunderstanding about which ship the raffle involved prevented formation of an enforceable contract.
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Regal Apparel promoted a raffle offering free beer to contest winners through labels on its products. State regulators challenged the promotion as an unlawful inducement under federal labeling statutes. The company defended on First Amendment grounds, arguing the raffle constituted protected commercial speech.
Riley Rivera contracted to host a large raffle drawing at a public hall during an economic emergency. State legislation later postponed all such events to protect public resources. The hall owner sued, claiming the postponement impaired the obligation of contracts under the state constitution.
Rina Rahman organized a charity raffle at a motel to fund civil rights programs. The motel refused to host the event, citing its policy against large gatherings. Organizers sued under federal civil rights statutes, alleging the refusal constituted discrimination in a place of public accommodation affecting interstate commerce.
Regina Robinson won a state-sponsored raffle but received only partial payment after the operator declared insolvency. She sued in state court to recover the balance. The operator removed the case to federal court, arguing the state judgment would violate federal constitutional protections.
Yes. Under UCC § 9-102(a)(2), a right to payment of winnings in a lottery or other game of chance operated or sponsored by a state or authorized person qualifies as an account. The definition expressly includes such winnings whether or not earned by performance.
Yes. When an association replaces a neutral seasonal lottery with a permanent allocation favoring board members who own larger boats, it breaches the duty of fair treatment owed to all members. Courts invalidate such self-dealing rules even when adopted through formal procedures.
Yes. Modern mistake-of-law principles recognize a defense when a defendant reasonably relies on an official statement of law, including a published decision of the state's highest court. The defense applies even if the court later reverses its position on rehearing.
…to impede local activities it considered undesirable by prohibiting the interstate movement of some essential element. In the Lottery Case , 188 U. S. 321 (1903), the Court rejected the argument that Congress lacked power to prohibit the interstate movement of lottery tickets because it had power only to regulate, not to…