A. Incorporation: This section incorporates herein by reference the Illinois raffles act 1 ("the act"), as amended.
B. Definitions: For the purposes of this code the terms defined in this section have the meanings given them.
BUSINESS: A voluntary organization composed of individuals and businesses who have joined together to advance the commercial, financial, industrial and civic interests of a community.
CHARITABLE: An organization or institution organized and operated to benefit an indefinite number of the public. The service rendered to those eligible for benefits must also confer some benefit on the public.
EDUCATIONAL: An organization or institution organized and operated to provide systematic instruction in useful branches of learning by methods common to schools and institutions of learning which compare favorably in their scope and intensity with the course of study presented in tax supported schools.
FRATERNAL: An organization of persons having a common interest, the primary interest of which is to both promote the welfare of its members and to provide assistance to the general public in such a way as to lessen the burdens of government by caring for those that otherwise would be cared for by the government.
KEY LOCATION: The physical location within the village’s corporate boundaries where the raffle drawing is conducted.
LABOR: An organization composed of workers organized with the objective of betterment of the conditions of those engaged in such pursuit and the development of a higher degree of efficiency in their respective occupations.
NET PROCEEDS: The gross receipts from the conduct of raffles, less reasonable sums expended for prizes, local license fees and other reasonable operating expenses incurred as a result of operating a raffle.
NONPROFIT: An organization or institution organized and conducted on a not for profit basis with no personal profit inuring to anyone as a result of the operation.
RAFFLE: A form of lottery, as defined in section 28-2(b) of the "criminal code of 1961", conducted by an organization licensed under this act, in which:
1. The player pays or agrees to pay something of value for a chance, represented 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;
2. 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 persons conducting or connected with the lottery, except that the winning chance shall not be determined by the outcome of a publicly exhibited sporting contest.
RELIGIOUS: Any church, congregation, society or organization founded for the purpose of religious worship.
SPONSORING ORGANIZATION: One of the eligible organizations defined in the Act that may receive a village-approved raffle license and consisting of:
1. Non-profit organizations or institutions;
2. Charitable organizations or institutions;
3. Educational organizations or institutions;
4. Religious congregations, societies and organizations;
5. Fraternal organizations; and
6. Veterans organizations or associations.
THIRD-PARTY RAFFLE OPERATOR/VENDOR: A person, company, corporation or organization who contracts with and acts at the direction of and under the supervision of the sponsoring organization, to provide bona fide services to the sponsoring organization in connection with the operation of a raffle and may receive reasonable compensation from the sponsoring organization for such services as provided for in the Illinois Raffles Act, 230 Illinois Compiled Statutes 15/4(a)(2). Such services include the following:
1. Advertising, marketing and promotion;
2. Legal;
3. Procurement of goods, prizes, wares and merchandise for the purpose of operating the raffle;
4. Rent, if the premises upon which the raffle will be held is rented;
5. Accounting, auditing and bookkeeping;
6. Website hosting;
7. Mailing and delivery;
8. Banking and payment processing; and
9. Other services relating to the operation of the raffle.
VETERANS: An organization or association comprised of members of which substantially all are individuals who are veterans or spouses, widows or widowers of veterans, the primary purpose of which is to promote the welfare of its members and to provide assistance to the general public in such a way as to confer a public benefit.
C. Licensing: Each event at which a raffle or raffles are to be conducted shall have a separate raffle license issued by the village.
1. Limitations: The following limitations apply to raffles conducted within the village:
a. The aggregate retail value of all jackpots or roll-over jackpots, prizes or merchandise awarded by a licensee in a single raffle shall not exceed: Two hundred thousand dollars ($200,000.00). For any raffle that has the potential for jackpots or roll-over jackpots (e.g., Queen of Hearts raffles) to exceed maximum aggregate retail value of all prizes or merchandise awarded restriction, the applicant or the third-party raffle operator/vendor shall award only a jackpot or jackpots or prizes or merchandise that meets the above dollar amount restriction. The applicant or the third-party raffle operator/vendor shall not sell raffle chances in an amount that would cause the jackpot or roll-over jackpot or prizes or merchandise to exceed the above dollar amount restriction.
b. The maximum retail value of each jackpot or roll-over jackpot or prize awarded by a licensee in a single raffle shall not exceed: One hundred thousand dollars ($100,000.00). For any raffle that has the potential for jackpots or roll-over jackpots (e.g., Queen of Hearts raffles) to exceed the maximum retail value of each jackpot, roll-over jackpot or prize awarded restriction, the applicant or the third-party raffle operator/vendor shall award only a jackpot, a roll-over jackpot or a prize that meets the above dollar amount restriction. The applicant or the third-party raffle operator/vendor shall not sell raffle chances in an amount that would cause the jackpot or roll-over jackpot or prize to exceed the maximum dollar amount restriction.
c. The maximum price which may be charged for each raffle chance issued or sold shall not exceed: Five hundred dollars ($500.00).
d. The maximum number of days during which chances may be issued or sold for any event shall not exceed: One hundred eighty (180) days.
e. The raffle drawing shall be conducted at a designated key location(s), as identified in the application and approved by the village. The key location shall be located within the village corporate boundaries.
2. License Fees: The raffle license fee for each event at which a raffle or raffles are to be conducted shall be: See section 3-3-2 of this title. If there are multiple events to be conducted in one specified period of time not to exceed one year, then one license may be issued to cover multiple events, but the applicant shall be required to pay the above license fee for each event conducted during the applicable time period. The corporate authorities of the village may waive raffle license fee requirement by including a waiver in the license issued to an organization under this section, provided that a license containing such waiver shall be granted only by unanimous vote of the corporate authorities of the village.
3. Duration Of License; Revocation: Licenses issued pursuant to this section shall be valid for one raffle or for a specified number of raffles to be conducted during a specified period not to exceed one year and may be suspended or revoked for any violation of this section. The village shall act on a license application within thirty (30) days from the date of application.
4. Issuance; Eligibility: Licenses shall be issued only 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 five (5) years immediately before making application for a license and which have had during that entire five (5) year period a bona fide membership engaged in carrying out their objectives, or to a nonprofit fundraising organization that the licensing authority determines is organized for the sole purpose of providing financial assistance to an identified individual or group of individuals suffering extreme financial hardship as the result of an illness, disability, accident or disaster.
D. Application; Restrictions: Any license issued by the village is subject to the following application requirements and restrictions:
1. No person, firm or corporation shall conduct raffles or chances without having first obtained a village license therefor pursuant to this section.
2. The license and application completed by the applicant for a license shall specify the method in which raffle chances will be sold (e.g. paper tickets, online chances, etc.), the area or areas in which raffle chances will be sold or issued (e.g. within the village, within Cook County, Illinois, or throughout the State of Illinois), the time period during which raffle chances will be sold or issued, the time of determination of winning chances and the key location or key locations within the village’s corporate boundaries at which winning chances will be determined. Raffle chances shall not be sold or issued to persons, companies, organizations or any other entities outside of the State of Illinois or outside of the jurisdiction authorized within the village license.
3. The application completed by the applicant shall 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.
4. If the applicant intends to contract with a third-party raffle operator/vendor pursuant to division F2 of this section, the pertinent portions of the application shall be completed and also signed by the third-party raffle operator/vendor, which contains information regarding the role and activities of the third-party raffle operator/vendor relative to the raffle.
5. The application shall also contain sworn statements to be signed by the presiding officer and the secretary of the applicant and the presiding officer and the secretary of the third-party raffle operator/vendor (if any) that certify that the applicant and the third-party raffle operator/vendor agree to comply with all applicable statutes, ordinances, village code provisions and regulations regarding the conduct of raffles.
6. The application completed by the applicant and the third-party operator/vendor (if any) shall be on a form prepared by the village in accordance with this section.
7. A license authorizes the licensee to conduct only "raffles" as defined in this section.
E. Persons Ineligible: The following are ineligible for any license under this section:
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 subsection E1, E2 or E3 of this section has a proprietary, equitable or credit interest, or in which such a person is active or employed;
5. Any organization in which a person defined in subsection E1, E2 or E3 of this section is an officer, director or employee, whether compensated or not;
6. Any organization in which a person defined in subsection E1, E2 or E3 of this section is to participate in the management or operation of a raffle as defined in this act.
F. Conduct Of Raffles: The conducting 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 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 any premises on which to determine the winning chance or chances in a raffle only from an organization which is also licensed under this section.
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 locations specified on the license.
6. No person under the age of eighteen (18) years may participate in the conducting of raffles or chances. A person under the age of eighteen (18) years may be within the area where winning chances are being determined only when accompanied by his parent or guardian.
7. If a lessor rents premises where a winning chance or chances on a raffle are determined, the lessor shall not be criminally liable if the person who uses the premises for the determining of winning chances does not hold a license issued by the governing body of any county or municipality under the provisions of this section.
G. Raffle Manager; Bond: All operation of and the conduct of raffles, as provided for under this section, shall be under the supervision of a single manager designated by the licensed organization. The manager shall give a fidelity bond in the sum of fifty thousand dollars ($50,000.00) or two (2) times the aggregate value of prizes, whichever is greater, in favor of the licensed organization conditioned upon his honesty in the performance of his duties. The bond shall provide that notice shall be given in writing to the village not less than thirty (30) days prior to its cancellation. The corporate authorities of the village may waive or adjust the dollar value of the bond requirement by including a waiver or adjustment provision in the license issued to an organization under this section, provided that a license containing such waiver or adjustment provision shall be granted only by unanimous vote of the corporate authorities of the village.
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 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 net proceeds shall be itemized as to payee, purpose, amount and date of payment.
2. Gross receipts from the operation of raffles programs shall be segregated from other revenues of the organization, including bingo gross receipts, if bingo games are also conducted by the same nonprofit organization pursuant to license therefor issued by the department of revenue of the state of Illinois, and placed in a separate account. Each organization shall have separate records of its raffles. The person who accounts for gross receipts, expenses and net 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 promptly after the conclusion of each raffle to its membership, and to the village, its gross receipts, expenses and net proceeds from raffles, and the distribution of net proceeds itemized as required in this section.
4. Records required by this section shall be preserved for three (3) years, and organizations shall make available their records relating to operation of raffles for public inspection at reasonable times and places.
I. Violation: Violation of any provision of this section is a class C misdemeanor.
J. Gambling Not Authorized: Nothing in this section shall be construed to authorize the conducting or operating of any gambling scheme, enterprise, activity or device other than raffles as provided for herein. (Ord. 11-2623, 3-28-2011; amd. Ord. 20-3013, 9-14-2020)
Notes
| 1 | 1. 230 ILCS 15/1 et seq. |