What is a Razz Auction in Sports Memorabilia?

What is a razz?

I am not giving legal advice.  You should seek the advice of an attorney in your state.  Essentially it is a form of gambling.  The seller determines an item is worth $100.  He would then sell 10 spots at $10 (example).  A person could pick up as many spots as they want.  The names are then put into a randomizer where the names are randomly shuffled, with the top name after 5 times being randomized the winner.

Why do people do razzes?

Sellers of the item typically do them to make an item easier to sell.  For example, a $500 item with 50 spots at $10 each is a lot easier for someone to pay for rather than finding 1 buyer for $500.

As a buyer, people like the thrill of winning something.  Especially if they only paid $10 for it.

Why no to do razzes?

Well, typically they are illegally.  Plus, you know with any gambling, the house always wins right?  You almost never come out on top.  In this case, the seller is the house.

Say you play 50 razzes in 1 year at $10 a pop.  Each with 50 spots available (total value on each item $500).  Your chance of winning each razz is 2%.  Say you win once over those 50 razzes.  You just spent $500 on that item you won.  Not having any control over which razz you won.  You would be better off saving your money and spending it on something you truly want.