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"Lotteries" & "Raffles" - What's legal?

W

wennykindham

Guest
After seeing the ads on TV and hearing the promos on the radio for the St Jude "Dream Home" giveaway this year I've had some nagging questions about just how legal such promotions are. I know that charitible activities are often given the pass for obvious PR reasons but what's the real liability for the involved stations? There are legal types who post here so hopefully someone can explain the finer points of MS law on the subject-as well as FCC precedent on the subject. My unlawyerly impression after a review of the law on Charitable gambling is that only Non-Profits registered with the state have any rights to conduct such activities. The list included a lot of veterens groups and churches but no St Jude-Is there some separate rule for federally certified groups? I know this might bore some folks but it is an interesting question for me...
 
Interesting question... and I am not sure I can fully answer it.

There are two different issues here: 1) what MS law is regarding the promotion, and 2) FCC/Federal law regarding gambling lotteries.

Sadly, I cannot answer question 1. I ain't a MS lawyer. And the answer to question 2 turns on question 1.

FCC rule really isn't the issue here; 1st Amendment law is. Controlling law is a case styled, GREATER NEW ORLEANS BROADCASTING ASSOCIATION, INC., et al. v. UNITED STATES et al. (1999). This case, brought by some New Orleans TV/Radio stations was about the legality of running casino ads. The holding, on first blush, was a bit narrow. The Court held prohibitions applied to advertisements of lawful private casino gambling that are broadcast by petitioners’ radio or television stations located in Louisiana, where such gambling is legal, were not permissible. But, the case has been applied to mean that gambling ads ARE legal when the gambling in question is legal.

Justice Thomas, one of the best writers on the Court, went even further. Ole' Clarence basically wrote that anything is OK to advertise as long as its legal. But, despite the fact that HE IS RIGHT, he was alone in that. His Concurrence has been cited by lower courts, however.

OK, so the question is whether the raffle is legal. And, I can't answer that. It might not be in TN, as Sec. 5 of our State Constitution states, "[a]ll ... forms of lottery not authorized herein are expressly prohibited unless [stuff that doesn't apply here]. Yet, stuff like this happens all the time. One day, when I'm bored, I'll do a bit of research and ask why.

But, an important rule: Your State almost NEVER may regulate anything on your air (save for obscenity and other non-protected speech.) If they try, tell 'em to go... well, you know. Mississippi once prohibited wine ads; that one got shot down.

And, yeah... I realize I just blew a buch of hot air, and answered nothing. But, lawyers and politicians do that all the time.

DE
 
> Interesting question... and I am not sure I can fully answer
> it.
>
> There are two different issues here: 1) what MS law is
> regarding the promotion, and 2) FCC/Federal law regarding
> gambling lotteries.
>
> Sadly, I cannot answer question 1. I ain't a MS lawyer.
> And the answer to question 2 turns on question 1.
>
> FCC rule really isn't the issue here; 1st Amendment law is.
> Controlling law is a case styled, GREATER NEW ORLEANS
> BROADCASTING ASSOCIATION, INC., et al. v. UNITED STATES et
> al. (1999). This case, brought by some New Orleans TV/Radio
> stations was about the legality of running casino ads. The
> holding, on first blush, was a bit narrow. The Court held
> prohibitions applied to advertisements of lawful private
> casino gambling that are broadcast by petitioners’ radio or
> television stations located in Louisiana, where such
> gambling is legal, were not permissible. But, the case has
> been applied to mean that gambling ads ARE legal when the
> gambling in question is legal.
>
> Justice Thomas, one of the best writers on the Court, went
> even further. Ole' Clarence basically wrote that anything
> is OK to advertise as long as its legal. But, despite the
> fact that HE IS RIGHT, he was alone in that. His
> Concurrence has been cited by lower courts, however.
>
> OK, so the question is whether the raffle is legal. And, I
> can't answer that. It might not be in TN, as Sec. 5 of our
> State Constitution states, "[a]ll ... forms of lottery not
> authorized herein are expressly prohibited unless [stuff
> that doesn't apply here]. Yet, stuff like this happens all
> the time. One day, when I'm bored, I'll do a bit of
> research and ask why.
>
> But, an important rule: Your State almost NEVER may
> regulate anything on your air (save for obscenity and other
> non-protected speech.) If they try, tell 'em to go... well,
> you know. Mississippi once prohibited wine ads; that one
> got shot down.
>
> And, yeah... I realize I just blew a buch of hot air, and
> answered nothing. But, lawyers and politicians do that all
> the time.
>
> DE
>
You would think that someone with these borderline promotions has checked with the State Attorney General's Office to make sure of the legality of their events. If someone were to complain about a possible lottery, that's where they would go. When casino advertising started years ago,it was left to that office to determine what was legal or not. I think the problem with enforcement is similar to the FCC's dilema with infractions. If no complaint is filed on a specific matter, there's no action. I've done some public service organization promotions, and when in doubt, I call the State to verify that all is okay, and follow up with email to have a written record of the correspondence.
 
I seem to call a relaxation of at least part of the FCC's anti-lottery rule some years back. It involved a retailer who had one of those "pop the balloon to see what your discount is" type promotions. My memory gets worse as I get older, but I seem to recall that this was ruled acceptable.

LF
 
> I seem to call a relaxation of at least part of the FCC's
> anti-lottery rule some years back. It involved a retailer
> who had one of those "pop the balloon to see what your
> discount is" type promotions. My memory gets worse as I get
> older, but I seem to recall that this was ruled acceptable.
>
> LF
>
Guess it's because balloons come in so many pretty colors!
 
> > I seem to call a relaxation of at least part of the FCC's
> > anti-lottery rule some years back. It involved a retailer
>
> > who had one of those "pop the balloon to see what your
> > discount is" type promotions. My memory gets worse as I
> get
> > older, but I seem to recall that this was ruled
> acceptable.
> >
> > LF
> >
> Guess it's because balloons come in so many pretty colors!
>
Look, 99 cent lime slushes at Sonic!
 
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