I STRONGLY suggest you consult state laws before you start using RFF to advertise a lottery!! (Don't ask; it was a long time ago, but I found out about this the hard way. Let's just say that in most states, attorney general is an elective office, so they're not exactly adverse to publicity for busting out-of-state "gambling" operations.)
I also was struck by the similarity to the idea of a keh. The way I've read about it is that a group of families agrees to get together once a week for a potluck dinner. At the dinner, each chips in a set amount -- say, $20. Then they have a drawing, and whosever name is drawn gets the money.
What makes this different from a lottery is that once you've won, you're no longer eligible next time -- so eventually, everyone will win the pot once (you're honor-bound to stay in the group and keep contributing after you win.)
In mathematical terms, this means that the money you get out eventually is exactly equal to what you put in, so you're not actually gaining anything compared to what you'd get by socking away your own $20 every week for a year -- it's really a savings plan rather than a game of chance (thus avoiding legal problems.) Still, not everyone has the willpower to save $20 a week and leave it untouched for a year -- but in the dinner-game setting, you've got a social incentive to stick with the program, and every week you get to see somebody walk out with $1,040 (assuming it's a year-long cycle) knowing that sooner or later, that somebody is going to be you.
I'm not volunteering to set this up (it really works better in person) but there it is as an idea...
