(A) Conduct of raffles. The conduct of raffles is subject to the following restrictions:
(1) The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the licensee permitted to conduct that game.
(2) No person except a bona fide director, officer, employee or member of the sponsoring organization may manage or participate in the management of the raffle. No person may receive any remuneration or profit from managing or participating in the management of the raffle. Sponsoring organizations may contract with third parties who, acting at the direction of and under the supervision of the sponsoring organization, provide bona fide services to the sponsoring organization in connection with the operation of a raffle and may pay reasonable compensation for such services. Such services include the following:
(a) Advertising, marketing and promotion;
(b) Legal;
(c) Procurement of goods, prizes, wares and merchandise for the purpose of operating the raffle;
(d) Rent, if the premises upon which the raffle will be held is rented;
(e) Accounting, auditing and bookkeeping;
(f) Website hosting;
(g) Mailing and delivery;
(h) Banking and payment processing; and
(i) Other services relating to the operation of the raffle.
(3) A licensee may rent a premises on which to determine the winning chance or chances in a raffle provided that the rent is not determined as a percentage of receipts or profits from the raffle.
(4) Raffle chances may be sold or issued throughout the state, including beyond the borders of the village and winning chances may be determined only at those locations specified in the license for a raffle.
(5) A person under the age of 18 years may participate in the conducting of raffles or chances only with the permission of a parent or guardian. A person under the age of 18 years may be within the area where winning chances in a raffle are being determined only when accompanied by a parent or guardian.
(ILCS Ch. 230, Act 15, § 4(a))
(B) Raffle limits.
(1) The aggregate retail value of all prizes or merchandise awarded by a licensee in a single raffle, shall not exceed $50,000.
(2) The maximum retail value of each prize awarded by a licensee in a single raffle shall not exceed $50,000.
(3) The maximum price which may be charged for each raffle chance issued or sold, shall not exceed $100.
(4) The maximum number of days during which chances may be issued or sold, shall not exceed 180.
(5) The license shall not be valid for more than 210 days.
(C) Manager; bond.
(1) All management, operation and conduct of raffles shall be under the supervision of a single manager as designated on the license application.
(2) A manager shall give a fidelity bond in the sum of the aggregate retail value the prizes as set out on the application. The bond shall be in favor of the organization conditioned upon the raffle manager’s honesty in the performance of his duties. Said bond shall provide that notice shall be given in writing to licensing authority not less than 30 days prior to its cancellation period. If the retail value of the prizes exceed $15,000, such bond shall be a corporate surety.
(ILCS Ch. 230, Act 15, § 5)
(D) Records.
(1) Gross receipts from the operation of raffle programs shall be segregated from other revenues of the licensee; (including bingo gross receipts, if bingo games are also conducted by the same licensee pursuant to license issued by theDepartment of Revenue of the State of Illinois), and placed in a separate account. Each licensee shall have separate records of its raffles. The person who accounts for gross receipts and expenses from the operation of raffles shall not be the same person who accounts for other revenues of the organization.
(ILCS Ch. 230, Act 15, § 6(b))
(2) Each licensee shall keep records of gross receipts, expenses, and net proceeds for each single raffle at which winning chances in a raffle are determined. All reasonable operating expenses deducted from gross receipts for each single raffle shall be documented with receipts or other records indicating the amount, a description of the purchased items or service or other reason for deduction, and the recipient. The distribution of net proceeds shall be itemized as to payee, purpose amount, and date of payment.
(ILCS Ch. 230, Act 15, § 6(a))
(3) Each licensee, within 30 days of the raffle, shall report to its membership, or if it has no members, to its governing board, and to the Raffle Licensing Agent each of the following:
(a) Gross receipts generated by the conducting of the raffle;
(b) An itemized list of all reasonable operating expenses which have been deducted from the gross receipts;
(c) Net proceeds from the conducting of the raffle;
(d) An itemized list of the distribution of the new proceeds; and
(e) A list of prize winners.
(f) Records required by this section shall be preserved for three years, and the organization shall make available for public inspection their records relating to the operation of a raffle at reasonable times and places.
(E) Conducting gambling schemes. Nothing in this subchapter shall be construed to authorize the conducting or operating of any gambling scheme, enterprise, activity, or device other than raffles as provided by state law.
(‘81 Code, § 5-30.04) (Ord. 1982-13-4, passed 7-16-82; Am. Ord. 2019-34, passed 10-7-19)