Photo via Raffal
By David Baker | AZFamily
State gaming officials are putting an end to an online Phoenix home raffle, saying it’s an illegal gambling scheme.
The Arizona Department of Gaming (ADG) announced on Tuesday that it has issued a cease-and-desist order to a UK-based company called Raffall and a Valley man who are running the sweepstakes.
John Smith said he is raffling off a $1.3 million mountainside home in north Phoenix with tickets starting at $10. If the minimum number of ticket sales is reached, the home would be awarded. If not, the winner gets 50% of the cash from the ticket sales.
However, raffles can only be put on by charitable, tax-exempt organizations and personal profit is banned, officials said. The way this home sweepstakes is set up, Smith and Raffall look to profit from the other half of the ticket sales, so it’s an illegal gambling operation, the ADG said.
