We do not allow raffles or auctions on our platforms for almost all cases.
In Canada and the United States, raffles and auctions are government-regulated activities. Any time a prize reward is attainable only by chance, and supporters can increase their chances of winning by spending more money, it is considered gambling, and you must obtain a license to hold it.
In some other countries, all forms of gambling are illegal.
Under the laws and regulations that apply to our system (including, but not limited to, those outlined by PayPal and Stripe), the ConnectionPoint Systems Inc. platforms are not allowed to host online contests, lotteries, raffles, auctions, pyramid schemes, gambling activities, or any other form of prohibited financial activity.
Here are two scenarios to help better understand what is allowed and what is not. #
Scenario 1 (allowed) #
Supporters donating at least $50 will receive a signed copy of our new album.
Scenario 2 (NOT allowed) #
Supporters donating at least $10 will have their names placed into a hat, and one person will win a signed copy of our new album.
What if I have the proper license? #
You may only hold an online raffle or auction on one of ConnectionPoint’s platforms if:
- You have obtained a valid online gaming licence from your state/province or local authority;
- You have provided both ConnectionPoint and the Payment Provider with a copy of the license before creating your campaign;
- The Payment Provider has given you written confirmation that you are okay to proceed.
Please note that you must follow all laws and regulations in your jurisdiction. If we receive a report of a campaign running a raffle or any other form of online gambling, that campaign may be suspended without notice. We will also notify PayPal and/or Stripe, at which point all funds in the account(s) may be held or returned to the supporters.
What can I do instead of a raffle? #
Many things! Our rewards feature lets you offer incentives for your supporters’ contributions. Be creative! Some of our most successful campaigns offer a simple “We’ll post a thank-you note to you on our Facebook Page” Perk for a $5 contribution, and get a lot of $5 contributions.
If you have a limited quantity of the raffle items, consider offering them as a perk or product reward. Make sure you limit the reward quantity to however many you have.
Remember – crowdfunding is all about storytelling. A well-told story can be more effective than a raffle, so click here to learn how to write the perfect story.