Ask Reggi Your Question Now

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

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

Here is the response to your query:

Non-Cash Prize Contests in Illinois

Illinois law allows for contests that involve non-cash prizes, such as merchandise or services, as long as they are conducted in compliance with the state’s regulations on charitable games and raffles.

According to [230 ILCS 30/8][3.1], the conducting of charitable games is subject to certain restrictions, including that the entire net proceeds from charitable games must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game. Additionally, no person may receive any remuneration or compensation either directly or indirectly from any source for participating in the management or operation of the game.

Furthermore, [230 ILCS 15/2][2.2] outlines the licensing requirements for organizations to operate raffles and poker runs in Illinois. Raffle licenses may be issued only to bona fide religious, charitable, labor, business, fraternal, educational, veterans’, or other bona fide not-for-profit organizations that operate 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.

Therefore, if you are a bona fide not-for-profit organization that meets the licensing requirements, you may offer contests that involve non-cash prizes in Illinois. However, you must ensure that you comply with all applicable regulations and restrictions on charitable games and raffles.

Conclusion

Illinois law allows for contests that involve non-cash prizes, but they must be conducted in compliance with the state’s regulations on charitable games and raffles. If you are a bona fide not-for-profit organization that meets the licensing requirements, you may offer such contests, but you must ensure that you comply with all applicable regulations and restrictions.

Source(s):
Jurisdiction

Illinois