CHAPTER 11
ARTICLE II. RAFFLES
DIVISION 1. GENERAL
Sec. 11-25. Title.
This Article shall be known, cited, and referred to as the “Raffle Ordinance of the Village of New Milford, Illinois.
Sec. 11-26. Purpose of Article.
The purpose of this Article is to regulate and control the conduct of raffles within the corporate areas of the Village of New Milford, Illinois.
Sec. 11-27. Definitions.
(a) The following words, terms, and phrases, when used in this Article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Charitable organization means 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 upon the public.
Education organization means 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 organization means 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 the government by caring for those who otherwise would be cared for by the government.
Labor organization means an organization composed of workers organized with the objective of betterment of the conditions of those engaged in such pursuit and developing a higher degree of efficiency in their respective occupations.
Licensee means an organization that has been issued a license to operate a raffle.
Net proceeds mean the gross receipts from the conduct of raffles, fewer sums expended for prizes, local license fees, and other reasonable operating expenses incurred as a result of operating a raffle.
Non-profit means organized, operated, and conducted on a not-for-profit basis, with no personal profit inuring to anyone as a result of the operation.
Raffle means a form of lottery, as defined in <sec>28- 1(b) of the Criminal Code of 1961, (720 ILCS 5/28-2) conducted by an organization licensed under this Article 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 means, one or more of which chances is to be designated the winning chance; and,
(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 organization means any church, congregation, society, or organization founded for the purpose of religious worship.
The value of non-cash prizes means the retail value of such prizes.
Veterans organization means 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.
(b) “Village” means the Village of New Milford, Illinois.
Words not defined in this section shall be interpreted in accordance with the definitions contained in the most current edition of Webster’s New Collegiate Dictionary.
DIVISION 2. LICENSE AND CLASSIFICATIONS.
Sec. 11-28. License required.
No person, firm, or corporation shall conduct a raffle or sell chances for a raffle in the Village without first having obtained a license pursuant to this Article. Licenses for raffles shall be issued only to bona fide religious, charitable, labor, business, fraternal, educational, or veterans’ organizations which operate without profit to their members, which have been in existence continuously for a period of five (5) years immediately before making application for a license and have had during the entire five (5) year period a bona fide membership engaged in carrying out their objectives and which maintain an office in the Village, or to a non-profit fundraising organization that the Village 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.
Sec. 11-29. Classification of Licenses.
A) Class A: General Raffle License
A General Raffle License shall permit the conduct of a raffle with a maximum single cash prize or the maximum retail value of a single non-cash prize not exceeding $150,000 and an aggregate maximum value of all cash and non-cash prizes awarded not exceeding $250,000.
Multiple drawings may be held to award the prized, but all drawings must occur on the same day at the same location.
The following fees are based upon the total aggregate value of all cash and non-cash prizes and shall be paid to the Village Clerk when the application for a raffle license(s) is filed:
Less than $100……………………………..No fee
$100 to $4,999……………………………..$10.00
$5,000 to $9,999……………………………$25.00
$10,000 to $25,000………………………….$50.00
Over $25,000 but not to exceed $250,000……………$50.00 plus an additional
$50.00 for each additional multiple of $25,000
B) Class B: One Ticket, Multiple Raffles License A Class B licenses allows up to four (4) raffles to be conducted with the same raffle tickets. Each ticket shall specify the dates of ticket sales and the dates of each drawing. Each drawing date shall be considered a separate raffle and will require a separate license and fee. Each license will allow one (1) drawing event for the prizes awarded.
Although a Class B license allows up to four (4) raffles, the maximum value of a cash or non-cash prize or prizes awarded to a single winner shall not exceed $150,000, and the aggregate value of all prizes awarded in all of the raffles shall not exceed $250,000.
The fees for Class A Raffle Licenses will apply for each of the licenses secured for Class B raffles.
C) Class C: One Time Emergency Raffle License A Class C Raffle License allows a non-for-profit fundraising organization or group organized for the sole purpose of providing financial hardship assistance to an identified individual or group of individuals suffering severe financial hardship as a result of an injury, disability, accident or disaster, to conduct one (1) raffle for that purpose.
The fee for a Class C license shall be Ten Dollars ($10), payable to the Village Clerk at the time of application.
D) Class D. Annual Raffle License
An Annual Raffle License shall permit the conduct of a raffle or raffles or the sale of chances for a raffle or raffles, in which the maximum value of all cash or non-cash prizes for a single drawing shall not exceed Five Thousand Dollars ($5,000). Class D raffles shall be licensed annually from the 1st day of January and end on the 31st day of December of the year. If raffle chances are sold during one calendar year and the drawings held in another calendar year, a license must be obtained for each year.
Such license shall permit no more than fifty-two (52) raffles. The aggregate value of all prizes awarded annually shall not exceed $250,000.
The fee for a Class D license shall be Two Hundred Dollars ($200), payable to the Village Clerk at the time of application. Such annual licenses shall not be prorated as to term or fee.
E) Class E: Limited Annual Raffle License
A Limited Annual Raffle License permits an organization to regularly conduct raffles among its own membership at a regularly scheduled organizational meeting. Chances for these raffles may only be sold, and the drawings are held on the date of the meeting. The aggregate value of the prizes awarded at each of these drawings may exceed One Hundred Dollars ($100). Class E raffles shall be licensed annually on a calendar year basis.
Such licenses shall permit no more than sixty (60) raffles per year. The aggregate value of all prizes awarded annually shall not exceed Five Thousand Two Hundred Dollars ($5,200).
The fee for a Class E license shall be Twenty-five Dollars ($25), payable to the Village Clerk at the time of application. Renewal applications shall be made on or before November 1 for the following year. Class E licenses shall not be prorated as to term or fee.
F) Fee Not Refundable
The application fees are not refundable, even in the event that the application is rejected by the Village Board or if the raffle is canceled.
DIVISION 3. QUALIFICATIONS AND APPLICATIONS
Sec. 11-30. Qualifications of applicant.
Raffle licenses shall be issued only to bona fide charitable, educational, fraternal, labor, religious, and veterans organizations that operate without profit to their members and which have been in existence continuously for a period of five (5) years or more immediately before making application for a license and which have had during the entire five (5) year period, a bona fide membership engaging in and carrying out their objectives, or to a not-for-profit fundraising organization or group that is organized for the sole purpose of providing financial assistance to an identified individual or group of individuals suffering severe financial hardship as a result of an illness, disability, accident or disaster. The following groups or individuals are ineligible for any raffle license:
(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 organization in which a person described in subsections (1), (2), or (3) of this section has a proprietary equitable or credit interest or in which such person is active and employed.
(5) Any organization in which a person described in subsections (1), (2), or (3) of this section is an officer, director, or employee, whether compensated or not; and,
(6) Any organization in which a person described in subsections (1), (2), or (3) of this section is to participate in the management or operation of a raffle.
Sec. 11-31. Application; Contents for Class A, B, and C
Licenses.
Any person seeking to conduct or operate a raffle described in Section 26-30, subsections A, B, or C, shall file an application with the Village Clerk on forms provided by the Village Clerk. Applications must be submitted to the Village Clerk at least ten (10) days prior to the Village Board meeting at which approval is desired. The application shall contain the following information:
(1) The name, address, and type of organization;
(2) The length of existence of the organization and, if incorporated, the date and state of incorporation;
(3) The name, address, telephone number, social security number, and date of birth of the organization’s presiding officer, secretary, raffle manager(s), and any other members responsible for the conduct and operation of the raffle(s);
(4) The aggregate value of all prizes to be awarded in the raffle;
(5) The maximum value of each prize to be awarded in the raffle;
(6) The maximum price charged for each raffle chance issued or sold;
(7) The maximum number of raffle chances to be issued;
(8) The areas in which the raffle chances will be sold or issued;
(9) The dates raffle chances will be issued or sold;
(10) The date(s) and locations at which winning chances will be determined;
(11) A sworn statement attesting to the not-for-profit character of the applicant or organization, signed by its presiding officer and secretary; and,
(12) A certificate signed by the presiding officer of the applicant organization attesting to the fact that the information contained in the application is true and correct.
Sec. 11-32. Application for Class D and E Licenses.
(A) Any organization seeking to conduct or operate a raffle described in Section 11-119, subsections D and E, shall file an application with the Village Clerk on forms provided by the Village Clerk. Applications must be submitted to the Village Clerk at least ten (10) days prior to the Village Board meeting at which approval is desired. The application shall contain the following information:
(1) The name, address, and type of the organization;
(2) The length of existence of the organization and, if incorporated, the date and state of incorporation;
(3) The name, address, telephone number, social security number, and date of birth of the organization’s presiding officer, secretary, raffle manager(s), and any other members responsible for the conduct and operation of the raffle(s);
(4) The location(s) at which the chances are to be sold, and the drawing(s) held;
(5) The dates the drawings are to be held;
(6) A sworn statement, signed by the presiding officer of the organization, attesting to its not-for-profit status and length of existence;
(7) A certificate signed by the presiding officer of the applicant organization attesting to the fact that the information contained in the application is true and correct.
(8) The number of drawings to be held during the twelve (12) month period.
DIVISION 4. OPERATION AND CONDUCT.
Sec. 11-33. Operation and Conduct.
The operation and conduct of raffles are subject to the following restrictions:
(1) The entire net proceeds of any raffle must be exclusively devoted to the lawful purpose of the licensee.
(2) No person except a bona fide member of the licensee may participate in the management or operation of the raffle.
(3) No person may receive remuneration or profit for participating in the management or operation of the raffle.
(4) A licensee may rent premises on which to determine the winning chance or chances in a raffle only from an organization that is also licensed under this Article.
(5) Raffle chances may be sold, offered for sale, conveyed, issued, or otherwise transferred for value only within the area determined on the license; the winning chances may be determined only at the location specified on the license.
(6) The maximum price which may be charged for each raffle chance sold, offered for sale, conveyed, issued, or otherwise transferred for the value shall not exceed $250.00.
(7) No cash prize in excess of $150,000.00 may be awarded, and the value of all prizes to be awarded shall not exceed $250,000.00.
(8) Each raffle chance shall have printed thereon the cost of the chance, the aggregate retail value of all prizes to be awarded in the raffle, and the maximum number of raffle chances to be issued except as provided below:
a. When raffle chances are sold, conveyed, issued, or otherwise transferred only at the time and location at which winning chances will be determined and only to persons then in attendance;
b. When the raffle chance is also a ticket to an event and a portion of the cost of the ticket is designated for dinner, golf, or another item of value to be consumed or used by the purchaser at the event.
(9) No person under the age of 18 years may participate in the operation or conduct of raffles, except with the permission of a parent or guardian. A person under the age of 18 years may be within the area where winning chances are being determined only when accompanied by his parent or guardian.
(10) Raffle drawings must be held on the date and at the location listed on the raffle license. If a raffle drawing is unable to be held due to an extreme emergency or a natural disaster, the licensee must seek approval from the Village Board before the drawing can be held on a different date. If a drawing is canceled due to inadequate sale of raffle tickets or due to some reason other than an extreme emergency or a natural disaster, the licensee must notify all ticket purchasers, refund all monies and return all prizes within thirty (30) days. Such cancellation will be reported to the Village Clerk with a full explanation.
Sec. 11-34. Manager, Fidelity Bond.
The operation and conduct of all raffles shall be under the supervision of a single raffle manager designated by the licensee. The manager shall give a fidelity bond equal in amount to the aggregate retail value of all prizes to be awarded in favor of the licensee conditioned upon his honesty in the performance of his duties. The terms of the bond shall provide that notice shall be given in writing to the Village not less than 30 days prior to its cancellation.
Sec. 11-35. Record Keeping of Gross Receipts; Expenses; Net Proceeds.
(a) Each licensee shall keep records of its gross receipts, expenses, and net proceeds for every single gathering or occasion at which winning chances are determined. All deductions from gross receipts for every 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.
(b) Gross receipts from the operation of raffles shall be segregated from other revenues of the licensee, including bingo gross receipts if bingo games are also conducted by the same not-for-profit organization pursuant to the license therefore issued by the State Department of Revenue and placed in a separate account. Each licensee shall keep 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 licensee.
(c) Each licensee shall report to its membership and to the Village its gross receipts, expenses, and net proceeds from the raffle, and the distribution of net proceeds itemized as required in this section. A report must be turned in within thirty (30) days of each raffle drawing, with the exception of weekly raffles, which may be reported once a month.
(d) Raffle records shall be preserved for three (3) years, and organizations shall make available their records relating to the operation of raffles for public inspection at reasonable times and places.
(e) No new raffle licenses will be issued to an organization until all reports from the organization’s previous raffles have been completed and submitted to the Village Clerk’s Office.
DIVISION 5. ISSUANCE AND ENFORCEMENT.
Sec. 11-36. Issuance
(a) Review of application; acceptance or rejection. Organizations shall submit applications to the Village Clerk’s Office at least ten (10) days prior to the Village Board meeting at which approval is desired. The Village Clerk shall review all raffle license applications, recommend approval or denial, and submit them to the Village Board. The Village Board shall, within thirty (30) days from the date of application, accept or reject a raffle license
application. If an application is accepted, the Village Clerk shall forthwith issue a raffle license to the applicant. Chances for each raffle may be issued or sold for a period of thirty (30) days prior to and including the date winning chances are to be determined unless the Village Board has specifically authorized a longer period of time but in no event longer than three hundred and sixty-five (365) days prior to and including the date winning chances are to be drawn.
(b) Contents of license. A raffle license shall show the following with respect to each raffle:
(1) The area in which raffle chances may be sold or issued;
(2) The period of time during which raffle chances may be sold or issued; and,
(3) The date(s) and the location at which winning chances will be determined.
(c) Display. The license shall be prominently displayed at the time and location of the determination of the winning chances.
(d) Validity. Each Class A or Class C license shall be valid for one (1) raffle. Each Class B license shall be valid for up to four (4) raffles. Each Class D or Class E license shall be valid for a specific number of raffles to be conducted during a specified period of time not to exceed one (1) year.
Sec. 11-37. Enforcement of Article.
(a) Penalties. Failure to comply with any of the requirements of this Article shall constitute a violation, and any person, upon conviction thereof, shall be fined not more than $500.00. Each day the violation continues shall be considered a separate offense. In addition, the Village Board is authorized to revoke the license of any Class D licensee that fails to comply with the reporting requirements of Section 11-125(c) in a timely manner.
(b) Abatement. The imposition of the penalties in this section prescribed shall not preclude the State’s Attorney from instituting appropriate action to prevent unlawful raffles or to restrain, correct, or abate a violation of this Article of the conditions of a raffle license issued pursuant hereto.
REFERENCES
Village of New Milford. “CODE OF ORDINANCES VILLAGE OF NEW MILFORD.” The Village of New Milford, Sept. 2021, villageofnewmilford.com/wp-content/uploads/2022/07/New-Milford-Code-of-Ordinances-September-2021.pdf.
