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Can I offer contests that involve cash prizes in Illinois? What are the requirements?

Yes, it is possible to offer contests with cash prizes in Illinois, but there are specific requirements that must be met.

Requirements for Offering Contests with Cash Prizes in Illinois

  1. The organization offering the contest must be a bona fide religious, charitable, labor, business, fraternal, educational, veterans’, or other bona fide not-for-profit organization that operates without profit to their members and which have been in existence continuously for a period of 5 years immediately before making application for a raffle license and which have during that entire 5-year period been engaged in carrying out their objects [3.3].
  2. The entire net proceeds of any raffle or poker run must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game [3.2](a)(1)][4.1](1)].
  3. 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 or poker run. No person may receive any remuneration or profit for managing or participating in the management of the raffle or poker run [3.2](a)(2)][4.1](2)].
  4. The maximum retail value of each prize awarded by a licensee in a single raffle must be limited [3.3](a)][4.1](4)].
  5. The licensing authority may establish special categories of licenses and promulgate rules relating to the various categories [3.3](a)].

Conclusion

In summary, it is possible to offer contests with cash prizes in Illinois, but the organization offering the contest must meet specific requirements. These requirements include being a bona fide not-for-profit organization, dedicating the entire net proceeds to lawful purposes, and limiting the maximum retail value of each prize awarded. Additionally, the licensing authority may establish special categories of licenses and promulgate rules relating to the various categories. [2.1][4.1]

Source(s):
Jurisdiction

Illinois