A. All games of chance,
except weekly drawings, are governed by the following two prize limits:
1. A prize for a single chance
in any game may not exceed $500.00.
2. An eligible organization
may not award prizes during any 7-day period (Monday through Sunday) with
a combined value, in cash or merchandise, of more than $5,000.00.
B. Weekly drawings are only
limited by the weekly limit above.
Note: Generally, no more than
$3,500.00 in daily drawing prizes may be awarded in a 7-day period.
Reason: Only one daily drawing may be conducted per day and the prize may
be no greater than $500.00. ($500.00 per day x 7 days = $3,500.00).
Prize Limit for Raffles
No more than $5,000.00, in
cash or merchandise, may be awarded in raffles during a calendar month.
Daily and Weekly Drawings
A licensed organization may
not conduct daily drawings during a week in which it conducts a weekly
drawing.
Prize Limit Examples:
1. Compliance. During
one operating week, a licensed eligible organization awards pull-tab
prizes of $2,000.00, daily drawing prizes totaling $1,500.00 and
punchboard prizes of $1,000.00. No individual prize is awarded with a
value greater than $500.00. This eligible organization has complied with
the prize limitations. No prize was awarded greater than $500.00 and the
total prizes for the operating week were only $4,500.00.
2. Non-Compliance. A
licensed eligible organization conducts five daily drawings during a
7-day period. The daily drawings are the only games of chance conducted
by the organization during the week. The prizes awarded are as follows:
Day 1: $300.00
Day 2: $150.00
Day 3: $525.00
Day 4: $500.00
Day 5: $200.00
Because the total weekly
prizes awarded are only $1,675.00, the organization complies with the
weekly prize limit. However, the organization has violated the individual
prize limit by awarding a prize in excess of $500.00 on Day 3.
3. Non-Compliance.
During the first operating week of the month, an organization conducts
daily drawings and awards prizes totaling $2,000.00. No individual prize
is over $500.00.
During the second operating
week, the organization holds a raffle drawing and awards raffle prizes
worth a total of $5,000.00.During week 3 the organization conducts
another raffle drawing and awards a $500.00 prize. It also conducts daily
drawings and awards total prizes of $1,000.00 and a weekly drawing and
awards a prize of $1,000.00. No individual prize is worth more than
$500.00.
The organization has committed
two violations of the prize limitations in the third week. By awarding
the second raffle prize of $500.00, the organization exceed the $5,000.00
monthly prize limit on raffles. Further, the organization operates daily
drawings during the same week it conducts a weekly drawing.
Prize Limit Exceptions
A. Special Raffle Permits
A licensed eligible
organization may apply for and receive up to two special raffle permits
per year (volunteer fire, ambulance and rescue organizations may apply
for any receive up to three special raffle permits). Only one raffle may
be conducted under each permit.
Note: Organizations with
limited occasion licenses are not eligible for special raffle permits.
Prizes awarded in special
permit raffles may exceed $500. The total value of all prizes awarded
under special permits in a calendar year may not exceed $100,000.
B. Daily Drawings
Daily drawings are subject to
the general prize limitations. There are two exceptions to this rule,
however.
Carryover Prizes: A daily
drawing prize may exceed $500 and will not be included in the $5,000
weekly prize limit if it is the result of a carryover from a previous
drawing in which a winner was not selected from the eligible entrants. In
order for this exception to apply, the carryover cannot result from the
failure to conduct a scheduled drawing. Further, each chance in the
carryover drawing must have been sold for no more than $1 and no more
than one chance may have been sold to an eligible participant.
100% Pay Outs: If a daily
drawing is set up to pay out 100% of the revenues generated, the prize
will not be included in calculating the organization’s weekly prize
limit. (Note: Prizes awarded in 100% pay out drawings may not exceed $500
unless the prize is also from a carryover drawing).
C Weekly Drawings
Weekly drawings are not
restricted by the $500 individual prize limitation. They are restricted
by the $5,000 per week prize limitation. There are two exceptions to this
rule, however.
Exceptions: Carryover and 100%
Pay Out Drawings
If a weekly drawing prize is
awarded as the result of a carryover from a previous drawing in which a
winner was not selected from the eligible entrants or as the result of a
drawing set up to award 100% of the proceeds from the drawing, the prize
shall not be included in calculating the eligible organization’s weekly
prize payments.
