This Penal Code Section makes it illegal to operate any lottery. Like the California lottery, the government's location will have complete jurisdiction over money like this.
These guys make thousands of dollars daily on lottery tickets and the lottery, so they will keep everybody from moving in on their business. The law says every person who allows or permits the use of any building or vessel or any portion hereof, knowing that it is to be used for setting up, managing, drawing any lottery, or selling or disposing of lottery tickets, is going to be guilty of a misdemeanor if they are not authorized to do so.
The government is like the Mafia. This is them saying, listen, this is how we make money. We're not going to let anybody else be able to make money when it comes to these lottery tickets.
I've had cases where people have stolen lottery tickets at gas stations. The gas station attendant tricks the customer by telling them that their lottery ticket didn't win. The lottery finds out about it, and then they have a task force that will prosecute them.
They also constantly send people into stores and gas stations to ensure the lottery is handled appropriately. Still, Penal Code Section 326 states that you cannot enter the lottery business for yourself.
You can obviously do it if you're authorized to do it, like these stores that sell lottery tickets because they're all set up, and they know how to do it the right way, and the California lottery monitors these guys.
Are There Defenses To The Lottery Concept?
Of course, there are defenses to Penal Code Section 326—renting out a premise for lottery purposes—but they will depend on the facts of the case.
In other words, there are specific rules for setting things up and getting authorization from the government. You are authorized to do this as long as the government gets a piece of their action. You're not just doing this yourself and taking a cut of the money without the authorization and knowledge of the California lottery.
You'll be okay, but once you start doing things yourself, you make money. The government is not getting their piece; you're taking lottery money away from the California lottery, and then they will charge you with this Penal Code Section 326 violation.
It's typically going to be charged as a misdemeanor. You're probably looking at up to a year in the county jail. So, suppose you have one of these offenses or something similar to this involving the California lottery or a violation of Penal Code Section 326. In that case, we should sit down, talk, go over everything, and get a strategy together because there are defenses to these cases.
Consult with an Experienced Defense Lawyer
Sometimes, people aren't trying to cheat the government out of money; sometimes, they are. Suppose the government can convince a jury that you're trying to cheat the government and rent a location by convincing evidence and proving the case beyond a reasonable doubt.
In that case, whether it's a boat house or a building for making money related to the California lottery, you need an attorney immediately because they will try to put you in jail.
They will try to punish you and restrict you, and if they lose any money, they will try to get all the money back and put a judgment against you.
You'll be ordered by the criminal judge of one of these lottery Penal Code Sect 326 violations to pay all the money back, and if you don't have the money to pay it, they're going to take it out of your hide; they're going to put you in jail, and they're still going to order you to pay it, and you'll have that restitution order sitting on you for the three years that they put you on probation.
If you don't put it off within those three years, you'll be in a position where they'll get a civil judgment against you that will follow you around for the rest of your life.
So, if you're charged with a Penal Code Section 326 violation and it's claimed that you're running a location or an operation selling unauthorized lottery tickets, come and sit down with me in the privacy of my office.
We're going to discuss whether this is a case that can be defended or whether this is going to be a case that we need to do damage control and work out some plea bargain with the prosecutors and try to get a lesser charge for you and get this off your record as soon as possible.
