Can I offer contests that involve referral bonuses in Illinois? What are the requirements?

Based on the provided context documents, referral bonuses are not specifically mentioned in Illinois law regarding raffles and chances. However, Illinois law allows for the conducting of raffles and chances by 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 ^[2.3].

Requirements for Conducting Raffles and Chances in Illinois

According to 230 ILCS 15/4, the entire net proceeds of any raffle or poker run must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game. Additionally, no person except a bona fide director, officer, employee, or member of the sponsoring organization may manage or participate in the management of the raffle or poker run. No person may receive any remuneration or profit for managing or participating in the management of the raffle or poker run.

Sponsoring organizations may contract with third parties who, acting at the direction of and under the supervision of the sponsoring organization, provide bona fide services to the sponsoring organization in connection with the operation of a raffle and may pay reasonable compensation for such services. Such services include advertising, marketing and promotion, legal, procurement of goods, prizes, wares and merchandise for the purpose of operating the raffle, rent, if the premises upon which the raffle will be held is rented, accounting, auditing and bookkeeping, website hosting, mailing and delivery, banking and payment processing, and other services relating to the operation of the raffle.

Raffle chances may be sold throughout the State, including beyond the borders of the licensing municipality or county. Winning chances may be determined only at those locations specified on the license for a raffle.

A person under the age of 18 years may participate in the conducting of raffles or chances only with the permission of a parent or guardian. A person under the age of 18 years may be within the area where winning chances are being determined only when accompanied by his or her parent or guardian.

Each organization licensed to conduct raffles and chances shall keep records of its gross receipts, expenses, and net proceeds for each single gathering or occasion at which winning chances 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.

It is recommended that you consult with a legal professional to determine if referral bonuses are permissible under Illinois law.

Source(s):

• [2.3] 230 ILCS 15/2

Jurisdiction

Illinois

• Gaming