Can I offer contests that involve entry fees in Illinois? What are the requirements?

Based on the provided context documents, it is legal to offer contests that involve entry fees in Illinois, but there are specific requirements that must be followed.

Requirements for Offering Contests with Entry Fees in Illinois

1. Licensing: The governing body of any county or municipality within Illinois may establish a system for the licensing of organizations to operate raffles [230 ILCS 15/2]. The licensing system shall provide for limitations upon the aggregate retail value of all prizes or merchandise awarded by a licensee in a single raffle, if any, the maximum retail value of each prize awarded by a licensee in a single raffle, if any, the maximum price which may be charged for each raffle chance issued or sold, if any, and the maximum number of days during which chances may be issued or sold, if any [230 ILCS 15/2].
2. Record-Keeping: Each organization licensed to conduct raffles and chances or poker run events shall keep records of its 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. 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. Records required by this Section shall be preserved for 3 years, and organizations shall make available their records relating to operation of raffles or poker runs for public inspection at reasonable times and places [230 ILCS 15/6].
3. Reporting: Each organization licensed to conduct raffles or poker runs shall report promptly after the conclusion of each raffle or poker run to its membership or, if the organization does not have members, to its governing board. Each organization licensed to conduct raffles shall report promptly to the licensing local unit of government its gross receipts, expenses and net proceeds from the raffle, and the distribution of net proceeds itemized as required in this Section. Records required by this Section shall be preserved for 3 years, and organizations shall make available their records relating to operation of raffles or poker runs for public inspection at reasonable times and places [230 ILCS 15/6].
4. Political Committees: Political committees may conduct raffles, but they must obtain a license from the State Board of Elections and follow specific restrictions [230 ILCS 15/8.1].

Definitions

• “Raffle” means a form of lottery, as defined in subsection (b) of Section 28-2 of the Criminal Code of 2012, 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; 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 [230 ILCS 15/1].

Conclusion

In summary, it is legal to offer contests that involve entry fees in Illinois, but organizations must obtain a license, keep records, and report promptly to the licensing local unit of government. Political committees may also conduct raffles, but they must obtain a license from the State Board of Elections and follow specific restrictions. ^[2.1]

Source(s):

• [2.1] 230 ILCS 15/1

Jurisdiction

Illinois

• Gaming