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

Based on the documents provided, it appears that Illinois law allows for certain types of contests, such as raffles and poker runs, to be conducted by licensed organizations. However, it is unclear whether free-entry contests are allowed under Illinois law.

Requirements for Conducting Raffles and Poker Runs in Illinois

Under Illinois law, raffles and poker runs can only be conducted by licensed organizations that meet certain criteria. These organizations must be bona fide not-for-profit organizations that operate without profit to their members and have been in existence continuously for a period of 5 years immediately before making application for a raffle or poker run license [3.3].

In addition, organizations 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].

Uncertainty Regarding Free-Entry Contests

Illinois law does not appear to explicitly address whether free-entry contests are allowed. However, it is possible that such contests could be considered a form of lottery, which is generally prohibited under Illinois law [3.1].

Given the lack of clear guidance on this issue, it may be advisable to consult with an attorney familiar with Illinois gaming laws before conducting any free-entry contests in the state.

Disclosures Required for Promotional Prize Offers

If you do decide to conduct a free-entry contest in Illinois, it is important to ensure that any promotional prize offer complies with Illinois law. Specifically, a written promotional prize offer must contain certain disclosures in a clear and conspicuous statement at the onset of the offer [4.1]. These disclosures include the true name and address of the sponsor’s actual principal place of business, the retail value of each prize, a disclosure that no purchase is necessary to enter the offer, a statement of the person’s odds of receiving each prize, and any limitations on eligibility [4.1].

Exemptions to Promotional Prize Offer Requirements

It is worth noting that certain types of solicitations or representations are exempt from the requirements of the Illinois Promotional Prize and Gift Act, including sales by a catalog seller and the State lottery created and regulated under the Illinois Lottery Law [4.2].

Conclusion

It is unclear whether free-entry contests are allowed under Illinois law. Organizations that wish to conduct raffles or poker runs in the state must be licensed and meet certain criteria, and must keep records of their gross receipts, expenses, and net proceeds. If you are considering conducting a free-entry contest in Illinois, it may be advisable to consult with an attorney familiar with Illinois gaming laws. Additionally, any promotional prize offer associated with the contest must comply with Illinois law, including the requirement to make certain disclosures.

[3.1]: 230 ILCS 15/1 [4.1]: 815 ILCS 525/25 [4.2]: 815 ILCS 525/35 [3.2]: 230 ILCS 15/6 [3.3]: 230 ILCS 15/2

Source(s):
Jurisdiction

Illinois