Definition

• In accordance with laws set forth by the state of Alabama, gambling is recognized as staking or otherwise risking something of value, either in person or via an electronic device, such as phone or Internet, based on the unknown outcome of a contest of chance or by a future contingent event in which the individual has no control or influence. Further, the individual must agree and understand that he or someone other than himself may receive something of value based on the results of a particular outcome.
  
  

Lotteries

• Alabama Criminal Code Section 13A-2-23 states that lotteries -- including the sale of raffle tickets -- either in person or online are deemed an unlawful gambling scheme. Under Alabama law, a lottery is considered any activity where the parties involved pay something of value in exchange for the chance to win something of value -- and the winning chances are determined by drawing or any other fortuitous method. Whether or not the holder of the winning ticket collects on the prize or not is irrelevant.
  
  

Sanctions

• In recognition of Alabama Criminal Code 13A-2-23, any party found by a court of law to have committed the act of gambling through the purchase or sale of Internet raffling is guilty of a misdemeanor, which is punishable by up to 12 months in jail. In addition, the defendant may be ordered to pay fines, restitution and court costs, as permitted under the law and as deemed appropriate by the appropriate Alabama court of jurisdiction.
  
  

Exceptions

• The state of Alabama recognizes certain exceptions as to what qualifies as gambling. Under Alabama law, gambling does not include bona fide business transactions as described under Alabama contract law, including, but not limited to contracts created for the purchase or sale of commodities or securities at a future date, or agreements that are enacted to compensate for loss caused by a death, injury or happening of chance; including, but not limited to health, lie or accident insurance policies or contracts for indemnity or guaranty.