§ 111.04  REGULATION OF RAFFLES.
   (A)   Definitions. For the purpose of this section, the following definitions apply unless the context clearly indicates or requires a different meaning.
      NET PROCEEDS. The gross receipts from the conduct, less reasonable sums expended for prizes, local license fees and other reasonable sums expended for prizes, local licenses fees and other reasonable operating expenses incurred as a result of operating a raffle.
      RAFFLE. A form of lottery as defined in 720 ILCS 5/28-2(b), conducted by an organization licensed under this section in which:
         (a)   The player pays or agrees to pay something of value for a chance, presented and differentiated by a number or by a combination of numbers, or by some other medium, one or more of which chances is to be designated the winning chance; and
         (b)   The winning chance is to be determined through a drawing or by some other method based on an element of chance by an act or set of acts on the part of person conducting or connected with the lottery; except that, the winning chance shall not be determined by the outcome of a publicly exhibited sporting contest.
   (B)   Duties. The Mayor is charged with the administration of the appropriate provisions of 230 ILCS 15/0.01 et seq. and provisions of this section and may appoint persons to assist him or her in the exercise of the powers and performance of the duties herein provided, including, but not limited to the Village Clerk and the Chief of Police.
   (C)   License required. No person or organization shall conduct or partake in the selling of raffle chances within the corporate limits of the village, without having a license to do so issued by the Village Clerk, in a manner hereinafter provided and a valid license for such purpose as provided by 230 ILCS 15/0.01 et seq. Licenses shall be issued only to a bona fide religious, charitable, labor, business, fraternal, educational or veterans’ organizations that operate without profit to their members and which have been in existence continuously for a period of one year immediately before making application for a license and which have had during that entire one-year period a bona fide membership engaged in carrying out their objectives. The license fee shall be $25 per raffle.
   (D)   Applications for license. The Village Clerk is authorized to grant and issue licenses to eligible organizations permitting them to conduct raffles and to participate in the sale of raffle tickets, within the corporate limits of the village, upon the conditions and in the manner provided by this section and by the aforesaid statutes, and not otherwise. Such license shall be in writing, signed by the Village Clerk with the seal of that office affixed thereto. Prior to the issuance of a license, the applicant must submit to the Village Clerk, an application, in triplicate, in writing and under oath stating:
      (1)   The name and address of the organization;
      (2)   The type of organization that is conducting the raffle (i.e., religious, charitable, labor, business, fraternal, educational, veterans or other);
      (3)   The length of time the organization has continually existed immediately before making application for a license;
      (4)   The applicant shall give the aggregate retail value of all prizes or merchandise awarded by a licensee in a single raffle;
      (5)   The applicant will give the maximum retail value of each prize awarded by a licensee in a single raffle;
      (6)   The amount that the organization plans to charge for each raffle chance issued or sold;
      (7)   The time and location where the raffle is to be held;
      (8)   The purpose for which the proceeds of the raffle will be used;
      (9)   The name and address of the person conducting and performing the raffle, and his or her relationship with the organization;
      (10)   The last date which the applicant has applied for a raffle license;
      (11)   The area in which the organization plans to sell or issue its raffle chances; and
      (12)   Whether or not the applicant has ever been convicted of a felony.
   (E)   Rules for applications and licenses.
      (1)   The license and application for license must specify the area for areas within the licensing authority in which raffle chances will be sold or issued, the time period during which raffle chances will be sold or issued, the time of determination in winning chances and the location or locations with which winning chances will be determined.
      (2)   The application must contain a sworn statement attesting to the not-for-profit character of the prospective licensee organization signed by the presiding officer and the secretary of that organization.
      (3)   The village shall act on a license application within 30 days from the date of application.
      (4)   Each such license is valid for one calendar year without regard to the date within the calendar year that the license is obtained.
   (F)   Prohibited licensees. The following are ineligible for any raffle:
      (1)   Any person who has been convicted of a felony;
      (2)   Any person who is or has been a professional gambler or gambling promoter;
      (3)   Any person who is not of good moral character;
      (4)   Any firm or corporation in which a person defined in divisions (F)(1), (F)(2) or (F)(3) above has a propriety, equitable or credit interest, or in which such a person is active or employed; and
      (5)   Any organization in which a person is defined in divisions (F)(1), (F)(2) or (F)(3) above is to participate in the management or operation of a raffle as defined by this section.
   (G)   Restrictions on the conduct of raffles.
      (1)   The entire net proceeds of any raffle must be exclusively devoted to the lawful purpose of the organization permitted to conduct that game.
      (2)   No person, except a bona fide member of the sponsoring organization, may participate in the management or operation of the raffle.
      (3)   No person may receive any remuneration or profit for participating in the management or operation of the raffle.
      (4)   A licensee may rent a premises on which to determine a winning chance or chances in a raffle only from an organization which has also licensed under the Raffles and Poker Runs Act, being 230 ILCS 15/0.01 et seq.
      (5)   Raffle chances may be sold or issued only within the area specified on the license, and winning chances may be determined only at those location(s) specified on the license.
      (6)   No person under the age of 18 years may participate in the conducting of raffles or chances. A person under the age of 18 may be within the area where winning chances are being determined only when accompanied by his or her parent or guardian.
   (H)   Records.
      (1)   Each organization licensed to conduct raffles and chances shall keep records of its gross receipts, expenses and net proceeds for each single gathering or occasion at which winning chances are determined. All deductions from the gross receipts for each single gathering or occasion shall be documented with receipts or other records indicating the amount, a description of the purchased item or service or other reason for the deduction and the recipient. The distribution of new proceeds shall be itemized as to payee, purpose, amount and date of payment.
      (2)   Gross receipts from the operation of raffle programs shall be segregated from other revenues of the organization, including bingo gross receipts, if bingo games are also conducted by the same non-profit organization pursuant to license therefor issued by the Department of Revenue of the state and placed in a separate account. Each organization shall have separate records of its raffles. The person who accounts for the gross receipts, expenses and not proceeds from the operation of raffles shall not be the same person who accounts for other revenues of the organization.
      (3)   Each organization licensed to conduct raffles shall report monthly to its membership, and to the Village Clerk, its gross receipts, expenses and net proceeds from raffles, and the distribution of net proceeds itemized as required by this section.
      (4)   Records required by this section shall be preserved for three years, and the organization shall make available their records relating to the operation of raffles for public inspection at reasonable times and places.
   (I)   Terms and fees.
      (1)   The aggregate retail value of all prizes or merchandise awarded by a licensee in a calendar year shall not exceed $20,000 unless approved by the corporate authority. With approval of the corporate authority, said aggregate retail value may be increased to $50,000. All applications to extend aggregate retail value beyond $20,000 in a calendar year must be individually approved by the corporate authority.
      (2)   The maximum retail value of each prize awarded by a licensee in a single raffle shall not exceed $20,000 unless approved by the corporate authority. With approval of the corporate authority, said maximum retail value of each prize may be increased to $50,000. All applications for a raffle license with maximum retail value of each prize over $20,000 must be individually approved by the corporate authority.
      (3)   The maximum price which may be charged for each raffle chance issued or sold shall not exceed $100 unless approved by the corporate authority. With approval of the corporate authority, the maximum price for each raffle chance may be increased to $200. All applications with a maximum price per chance over $100 must be individually approved by the corporate authority.
      (4)   The maximum number of days during which chances may be issued or sold shall not exceed 270 days for each raffle.
      (5)   Licenses issued pursuant to this section shall be valid for one calendar year and may be suspended or revoked for any violation of this section.
      (6)   Raffle chances shall be sold only within the boundaries of the corporate limits of the village.
      (7)   Licenses shall be issued to bona fide religious, charitable, labor, business, fraternal, educational or veterans’ organizations that operate without profit to their members, and which have been in existence continuously for a period of one year immediately before making application for a license and which have had during that entire one-year period a bona fide membership engaged in carrying out their objectives.
      (8)   The abovementioned types of organizations shall be defined pursuant to the 230 ILCS 15/0.01 et seq. and incorporated herein.
      (9)   No person or organization shall be issued more than one license in a calendar year.
      (10)   The manager of a raffle game shall give a fidelity bond in the sum of $1,000 in favor of the organization conditioned upon his or her honesty in the performance of his or her duties.
      (11)   Any license issued under this section shall be non-transferable.
      (12)   The fee for a license issued under this section shall be a flat fee of $20.
      (13)   The applicant shall apply for and obtain a license from the office of the Village Clerk prior to commencing any raffle activities.
   (J)   Waiver of license fee when charitable. There shall be no license fee if the President, with the advice and consent of the Village Board, may waive any license fees for entertainment, exhibitions or performance classified and defined hereunder given for any purely charitable purpose or where the entertainment, exhibition or performance is conducted by or under the auspices of a local educational fraternal, religious, military, patriotic or civic organization and the profit of which is to be used solely for carrying on the work of such organization.
(Ord. 17-513, passed 8-7-2017)  Penalty, see § 10.99