This is clearly illegal in the US, both at the Federal level and probably all 50 states. And if you were going to do an online lottery, you'd be a moron to give away anything but cash. People don't factor in their odds of winning when they decide to buy into a lottery (except the very few people who play lotteries profitably, but that's so rare as to be non-existent).

Also I hate this blog's design. The entries look like block quotes.