Raffles are subject to the following restrictions:
(A) Proceeds. The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization permitted to conduct that raffle.
(B) Participation in management. No person except a bona fide member of the sponsoring organization may participate in the management or operation of the raffle.
(C) Remuneration. No person may receive any remuneration or profit for participating in the management or operation of the raffle.
(D) Premises; Owners of Premises. A licensee may rent premises on which to determine the winning ticket or tickets in a raffle only from an organization which is also licensed under this chapter. Owners of premises that permit licensees to use premises to determine a winning ticket or tickets in a raffle other than by means of a rental of such premises shall be prohibited from receiving any form of consideration for the use of such premises, from participating in any way in the sale of tickets or chances for the raffle in question, from collecting, handling or paying out raffle proceeds or prizes, or from purchasing tickets or chances in a raffle or receiving any prizes from a raffle. No person convicted or found guilty of any violation of this chapter shall be permitted to offer or furnish any premises to any licensee for use in determining a winning raffle ticket or tickets for a period of one year following the date of such conviction or finding of guilty, and no entity having any such person as a manager, officer, director, member, shareholder, partner or owner shall be permitted to offer or furnish any premises to any licensee for use in determining a winning raffle ticket or tickets for a period of one year following the date of such conviction or finding of guilty.
(E) Locations. Raffle tickets may be sold or issued only within the area specified on the license and wining tickets may be drawn or determined only at the single location specified on the license application.
(F) Age. A person under the age of 18 years may participate in the conducting of raffles only with the permission of a parent or guardian. A person under the age of 18 years may be within the area where drawings are held only when accompanied by his parent or guardian.
(G) Manager. All raffle licensees must designate one member of the licensee organization to serve as its raffle manager. A raffle manager shall be responsible for the organization and conduct of the raffle generally, and shall further be responsible for collecting and accounting for all raffle proceeds, including but not limited to payment of prizes, payment of applicable taxes, and the disposition in accordance with this chapter of the remaining proceeds accruing to the licensee organization.
(H) Legal and tax compliance. All raffle licensees shall comply with all applicable laws and regulations pertaining to the conduct of raffles, and the collection, payment of and accounting for raffle prizes and proceeds, including but not limited to all applicable state and federal income tax laws and regulations.
(I) Class C raffle proceeds. All Class C licensees shall devote not less than 90% of the gross revenues from the sale of tickets or chances for any given raffle to the payment of prizes for such raffle, or for expenditures consistent with and directly in furtherance of the stated mission or purposes of the organization, to the exclusion of costs incurred in the conduct of the raffle itself and costs incurred by the licensee organization that do not directly further the organization's stated purpose or mission.
(J) Purchase of chances. No raffles manager of any licensee or any officer, director or other member of any licensee organization directly participating in collecting, paying or accounting for raffles proceeds shall be permitted to purchase any ticket or chance in any raffle conducted by the licensee, or to receive any prize from any such raffle.
(Ord. 18-1460, passed 2-7-18) Penalty, see § 112A.99