Reverse Auction websites are appearing lately like flies on a cake. Some of the sites try to confuse the users by saying it is a raffle and others provide a complete explanation of how they work. The main difference is: A Raffle is considered as gaming because the result depends on random numbers, and Reverse Auctions are not considered as gaming, because there is no randomness involved.
Another big difference is that if your activity is gaming, you need a license to operate and you are audited and have to comply with many anti-fraud regulations. Reverse Auctions are not subject to any regulation or licensing. Those sites are therefore not supervised or monitored by any authority. Their processes and software are not validated, so their prize assignation process doesn't need any approval or compliance with any guidelines. They can literally do what they want and the user is completely helpless if he wants to complain, because there is no authority to appeal to.
www.raff.me is located in Malta. The company’s operations are licensed and regulated by the Lotteries and Gaming Authority of Malta (LGA) http://www.lga.org.mt/ .
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