Free lotteries - Some are legitimate, some are not
More about pay-to-play lotteries
If you have received a lot of Lottery Scam emails and/or standard post letters, you have undoubtedly seen that some claim to be sponsored by Bill Gates or Jesse Jackson or Microsoft, Google, Yahoo, or any number of other well-known names.
Let's set the record straight: pay-to-play lotteries are NOT sponsored.
Lotteries are "operated." That means that they are managed by a company (either government owned or independent) that specializes in every aspect of lottery law, promotion, independent auditing, financial responsibility, and compliance with accounting/reporting laws and good business practices.
Now why is that? Well, just think of the numbers for a moment. Lotteries winnings are a portion of the total fees paid into the lottery by players. That's an awful lot of money. And that money has to be disbursed. Here are just some (not all) of the expenses incurred by operating a lottery:
All those expenses are paid for by from ticket sales revenue. The winnings are what is left over after expenses and disbursements to public works. Taxes are deducted from the winnings of the specific player once that player reports his claim to the lottery, depending on tax rules and regulations for the country, state, or province in which the lottery is being operated.
More about Sweepstakes
A SPONSORED lottery is normally called a Sweepstakes. Sponsored games are free, and are an enticement for players to provide their name, address, and telephone number for marketing and advertising purposes.
Where does the money come from for Sweepstake jackpots? From advertisers.
The most important information for advertisers is called demographics. 'Demo' - from the Greek "demos" meaning POPULACE or the people; and 'graphic' - relating to a written or pictorial presentation.
Briefly, demographics tell advertisers who is spending money and what they are spending it on. And that information is so important that advertisers are willing to spend a great deal of money to get it.
On top of that, new Internet laws are cracking down on Spam (unsolicited emails). While the laws don't have much bite to them right now, they will be stronger as time goes by. Advertisers must look to the future. There is so much money to be made on the Internet that merchants simply cannot afford to miss even one day of advertising.
This means the merchants are willing to buy your permission to send you email advertising, sell your info to 3rd parties, send advertising and samples to your home, and call you.
So they sponsor sweepstakes, or free betting games with any number of catchy and traditional names (such as free lottery), in return for your information and the right to send you advertising.
More about free online lotteries
Free lotteries are merchant Sweepstakes (see Sweepstakes above) called lotteries because numbers are drawn instead of entry forms.
Over the years, various marketing companies have created free online lotteries, the most notable of which are GroupLotto (which appears to no longer exist at this time, 2/2011) and FreeLotto. To play, one must register with the website, be eligible to play, and abide by the Rules (http://www.freelotto.com/Rules.asp). To claim prizes, players must log in to their FreeLotto account. FreeLotto is owned and operated by PlasmaNet Inc., a Delaware marketing corporation.
From time to time, there are other attempts at free online lottery-style Sweepstakes, but we strongly advise anyone who wishes to participate to carefully examine the eligibility requirements, rules of play, and most importantly, business licenses and registrations to determine who audits the operation.
We urge EXTREME caution when site ownership and business information is not made publicly available on the web site.
REMEMBER THIS! A RESPONSIBLE ONLINE LOTTERY OR SWEEPSTAKES:
EXCEPT FOR TAXES YOU PERSONALLY PAY DIRECTLY TO YOUR OWN GOVERNMENT TAX AGENCIES, THE AMOUNT LISTED AS YOUR WINNING AMOUNT IS FINAL.
We are not attorneys and don't pretend to be. In our experience, the information and guidance offered on this site have proven to be effective; however, we always recommend that you consult with an attorney.
If you have doubts about Fraud Aid, Inc. do not hesitate to contact federal (FBI, Secret Service, RCMP) Scotland Yard, or local law enforcement to check us out.
Information provided about lotteries and lottery scam: Fraud Aid, Inc. is not affiliated with any pay-to-play or free online lottery or Sweepstakes games and derives no income from any pay-to-play or free online lotteries or Sweepstakes or any of their participating sponsors with the possible exception of a sponsor's independent advertising unassociated with any drawings promotion; nor does Fraud Aid promote or sponsor any lotteries or Sweepstakes or numbers drawing of any kind.
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