The Art of the Raffle

What is the legal definition of a raffle?

Raffle is a type of lottery played as part of gambling in which several persons pay money for paper tickets that provide an opportunity to win the prizes.

Yet the definition has morphed in recent times, in accordance with the advent of online shopping and marketing campaigns. Now, raffling often occurs online, and is a system put in place to randomize the selection of people who get to purchase a limited edition product when demand outstrips the supply.

Examples that one can relate to are Sneaker raffles, where limited edition sneakers are sold to the lucky few who win the “sneaker raffle”.

Why bother you may ask? The answer is simple. For limited edition items, the retail value is often far below the resale value on the second hand market. This causes a truck load of competition to grab the item, whether the motivation is monetary or simply to collect.

Examples include Nike shoes that cost the neighborhood of 200 dollars, yet resale for north of 3000 dollars… surely that explains the incentive.

A shoe that retailed for 190 dollars, but is now being resold for a whopping 6k+!

This concept is similar in the world of Art.

When artists release limited editions of their work- be it in the form of art prints, original works, NFTs, or sculptures, they are often raffled to allow each interested customer the chance to buy their works.

This once again, is seen more often when the resale value of these works are expected to exceed to retail value.

Summarily, the process is as follows.

Art Releases-> people attempt to win the artwork-> people attempt to sell the artwork to collectors at a profit.

For some specific examples, Artists such as Takashi Murakami, Steven Harrington and others occasionally releases limited edition art prints, which get sold out by the hundreds in a matter of minute. Most people will then sell the art prints for a profit to interested third parties for a profit.

As individuals, it is without a doubt a side hustle that should not be overlooked. With almost no risks involved, and very little time and effort required, entering draws for highly contested art prints will yield some of the easiest cash you have ever made, if only you are lucky enough to win.

Best of luck, and happy raffling!