Tammeny Hall wrote:
The 11 dollars is not an entry fee because it doesn't guarantee entry in the race. As another poster has said, it is not an "application" fee either because the drawing is entirely random and therefore a game of chance. That is why It is likely that a court will find (similar to the Kona Ironman case) that the drawing is an illegal lottery.
The fact that the state of New York might be hypocritical in prohibiting private lotteries while supporting publicly supported Powerball is besides the point.
Kona Ironnman was sued and lost for running a lottery.
Here is the federal code for the Ironman case:
https://www.law.cornell.edu/uscode/text/18/1955I think it excludes non profits: (e) This section shall not apply to—
(1) any bingo game, lottery, or similar game of chance conducted by an organization exempt from tax under paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code of 1986, as amended, if no part of the gross receipts derived from such activity inures to the benefits of any private shareholder, member, or employee of such organization except as compensation for actual expenses incurred by him in the conduct of such activity; or
We've posted a copy of this NYC Marathon class action lawsuit here:
http://www.letsrun.com/news/2016/01/copy-complaint-new-york-city-marathon-lottery-lawsuit-konopa-et-al-v-new-york-road-runners-inc/They are going after the NYRR because of a state law.
I read a Runners World article last year that talked about whether race lotteries were illegal.
http://www.runnersworld.com/races-places/do-race-lotteries-violate-the-lawIt said: "The New York City Marathon is managed by the not-for-profit New York Road Runners. The New York State constitution does make lottery exceptions for non-profits that benefit organizations of veterans, volunteer firefighters, and “similar groups.†The language is unclear as to whether the NYRR would be included in “similar groups."
I'd like to see exactly what the "similar group" legislation says.