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

Yes, you can offer contests that involve entry fees in Oregon, subject to certain requirements.

Handicapping Contests

According to ORAR 462-220-0055, an advanced deposit wagering hub licensee may offer handicapping contests to its patrons. The contest wager is a separate pari-mutuel pool entry established by the licensee on a designated number of races. The gross pool consists of the total amount of entry fees generated by each contest. Prizes are distributed based upon scoring rules and prize parameters for each contest.

The licensee must establish a minimum and maximum number of entries per contest. If the minimum number of entries are not received, the licensee may cancel and refund all entries in that contest. A licensee may limit the number of entries per wagerer. The maximum entries per wagerer for each contest must be published in advance of the opening of the contest.

Contest wagers must be conducted as follows:

• Win/place and win/place/show contest
• Survivor contest
• Exacta box contest

The maximum takeout for the contest entry shall not be greater than 22%. Exceptions must be approved by the ORC.

The entire pool must be refunded if less than sixty percent of the contest’s designated races remain.

After wagering closes on the first race comprising the contest wager, the contest is deemed closed and no entry ticket may be sold, exchanged, or canceled. No person shall be determined to hold a winning contest wager ticket until the last designated race has been declared official.

Raffles

According to ORAR 137-025-0290, tickets for entry into a raffle shall constitute a separate and equal chance to win with all other tickets sold or issued. No person may be required to obtain more than one ticket, or to pay for anything other than the ticket, in order to enter a raffle.

A raffle licensee shall not sell tickets more than twelve months in advance of the draw date.

If due to circumstances beyond an organization’s control a raffle cannot be completed or the prizes cannot be awarded on the scheduled drawing date, the sponsoring organization must take all steps necessary to notify ticket purchasers of that fact and return all money received from ticket purchasers within 30 days.

An alternate drawing format, including use of random number generators, may be used to determine the winner(s) if such a format is approved by the Department prior to the sale of any ticket.

Application for Raffle License

According to ORAR 137-025-0210, an application for a raffle license or license renewal shall be made on a form prescribed by the Department, shall be signed by a responsible official of the organization, and must be accompanied by the license application fee as provided in section (3) of this rule. The Department shall reject applications which are incomplete, are not accompanied by the documents required by this section, or are not accompanied by a sufficient license fee. An applicant shall be immediately notified of any such deficiencies. The license application shall include the following information:

• The name, address and telephone number of the organization;
• A statement of the purposes for which the money received from the raffle games will be used;
• A statement as to whether or not the organization has had a license to operate bingo or raffle games denied, revoked or suspended by the State of Oregon or any other licensing authority; and
• The full names and addresses of the responsible officials of the organization.

The applicant shall submit the following documents with the application. The information required in subsections (b) and (c) of this section shall be on forms prescribed by the Department and shall be signed by a responsible official of the organization:

• A copy of a letter supporting tax exempt status as specified in OAR 137-025-0030(1)(c);
• As required by Oregon Laws 1987, Chapter 914, a waiver of potential liability claims against the State of Oregon, its agencies, employees and agents for any damages resulting from any disclosure or publication of any information acquired by the Department during any of its investigations, inquiries or hearings;
• A consent to inspection authorized by Chapter 914, Oregon Laws 1987, and the rules adopted thereto; and
• Such other information as requested by the Department.

The application fees are as follows:

• Class A raffle license — $100;
• Class B raffle license — $40.

Raffle Fees

According to ORAR 137-025-0280, all annual raffle reports filed with the Department shall be accompanied by a fee, made payable to the Department of Justice, of 2 percent of the raffle handle listed in the report up to $125,000 and 0.5 of 1 percent of the raffle handle in excess of $125,000. A delinquency fee of $20 or one percent of the fee described above, whichever is greater, shall be paid by the licensee if the report or regular fee is not delivered to the Department by the due date. The minimum delinquency fee shall increase to $50 after 60 days from the due date of the report.

Conclusion

Based on the above information, you can offer contests that involve entry fees in Oregon subject to certain requirements. However, if you have any specific questions or concerns, it is recommended that you consult with a legal professional.

Jurisdiction

Oregon

• Gaming