A lottery legally requires the three elements of prize, chance, and consideration

Evidence

All the parties agree that there are three essential elements of a “lottery,,gift enterprise, or similar scheme”: (1) the d stribution of prizes; (2) according to chance; (3) for a consideration. They also agree that prizes on the programs under review are distributed according to chance, but they fall out on the question of whether the home contestant furnishes The Commission contends that there is such consideration; in its brief, it urges that these programs ” . — Henry M. Hart, Jr. and Albert M. Sacks, The Legal Process, 2392

Categorization

• DEFINE: Defines the operative test for lottery, gift enterprise, and similar scheme.