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Legality of Private Lotteries

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Libby intends to organize a lottery to monetize her vintage clothing collection. Is this legally permissible if her state prohibits gambling?
AYes, she can hold the lottery provided she obtains a revenue license.
BYes, she can hold the lottery because it is a private event and not open to the general public.
CNo, she cannot hold the lottery because it constitutes illegal wagering.
DThe legality depends on whether the lottery is conducted on a Sunday.
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