Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I offer contests that involve chance-based games in Illinois? What are the requirements?

Yes, it is possible to offer contests that involve chance-based games in Illinois, but only if certain requirements are met. Not-for-profit organizations must obtain a charitable games license from the Department of Revenue and comply with the provisions of the Illinois Charitable Games Act [1.1]. Charitable games, which include raffles and poker runs, can only be conducted by not-for-profit organizations that have been in existence in Illinois for at least 5 years, or 2 years if affiliated with a national organization that meets the 5-year requirement [1.3]. These organizations must also pay a nonrefundable fee of $400 due upon application and each renewal [1.3].

There are restrictions and limitations on the conducting of charitable games in Illinois [2.1]. For example, the net proceeds from the games must be used for charitable purposes [2.1]. Additionally, the games must be conducted in compliance with the provisions of the Illinois Charitable Games Act [1.1].

Organizations that are licensed to conduct raffles and poker runs must keep records of their gross receipts, expenses, and net proceeds for each single gathering or occasion at which winning chances in a raffle or winning hands or scores in a poker run are determined [3.2]. These records must be preserved for 3 years and made available for public inspection at reasonable times and places [3.2].

It is important to note that there are certain restrictions on who can obtain a charitable games license. For example, any person convicted of any felony within the last 5 years where such conviction will impair the person’s ability to engage in the position for which a license is sought is ineligible for any license under the Illinois Charitable Games Act [1.2].

In addition, the conducting of charitable games is subject to various restrictions, such as the entire net proceeds from charitable games must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game [1.4]. Furthermore, no person except a bona fide member or employee of the sponsoring organization, or a volunteer recruited by the sponsoring organization, may participate in the management or operation of the game [1.4].

Lottery games are subject to different regulations in Illinois [11 ILAC 1770.170].

In summary, to offer contests that involve chance-based games in Illinois, not-for-profit organizations must obtain a charitable games license from the Department of Revenue, comply with the provisions of the Illinois Charitable Games Act, and follow various restrictions and limitations. Organizations must also keep records of their gross receipts, expenses, and net proceeds. It is important to note that there are restrictions on who can obtain a charitable games license, and the conducting of charitable games is subject to various restrictions.

Source(s):
Jurisdiction

Illinois