As reported by CNN, a raffle is currently underway in Kentucky to raise funds for a kids' softball team where the winner gets a semiautomatic pistol or an AR-15-style rifle kit. The team members are all under 10 years of age. The raffle tickets cost $10 each.
Sadly, there's nothing very unusual about this promotion: CNN's reporting uncovered several raffles raising money for kids' programs around the country featuring an AR-15 as a prize.
While charitable raffles and fundraising are regulated by law in almost every state, with requirements ranging from the need for an alternate (non-purchase) method of entry to licensing requirements, apparently giving away a semi-automatic weapon as a prize isn't. Either that, or any laws that would prohibit it are no more strenuously enforced than other gun laws.