question archive Jack lives in a state that does not operate a lottery
Jack lives in a state that does not operate a lottery
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Jack lives in a state that does not operate a lottery. This state does not have a statute expressly authorizing or prohibiting gambling. Jack feels that he can make a substantial profit from a lottery so he starts a private lottery within the state. Under these facts:
A) Jack's lottery is legal because it is not expressly prohibited by statute.
(B) Contracts directly relating to Jack's lottery are void.
(C) Contracts directly relating to Jack's lottery are valid.
(D) A and C.
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Answer:
(C) Contracts directly relating to Jack's lottery are valid.
Private lotteries are the ones which are confined to society members and not governed by public Gambling Act. In this case therefore, contracts directly relating to Jack's lottery are valid because it is not expressly prohibited by statute and not legal either because it is not expressly authorized by statute.
Reference link
https://uk.practicallaw.thomsonreuters.com/4-636-0616?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1
