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Can I offer contests that involve travel prizes in Illinois? What are the requirements?

Based on the documents provided, it appears that offering contests that involve travel prizes in Illinois is not explicitly prohibited. However, there are certain requirements that must be met in order to operate such contests legally.

Requirements for Offering Contests with Travel Prizes in Illinois

  1. Licensing: Organizations that wish to operate raffles or poker runs in Illinois must obtain a license from the governing body of the municipality with jurisdiction over the key location or, if no municipality has jurisdiction over the key location, then by the governing body of the county with jurisdiction over the key location [4.3].
  2. Non-profit status: Licenses for raffles and poker runs are 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 or poker run license [4.3].
  3. Limitations on prizes: 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, and the maximum price which may be charged for each raffle chance issued or sold, if any [4.3].
  4. Travel Promoters: If the contest involves travel, the organization must comply with the Illinois Travel Promoters Act [2.1]. The Act requires travel promoters to have liability insurance coverage for professional errors and omissions and a surety bond or equivalent surety in the amount of $100,000 or more for the benefit of consumers in the event of a bankruptcy on the part of the travel promoter. However, the Act provides exemptions for certain types of travel promoters, such as air carriers, sea carriers, and officially appointed agents of air carriers who are members in good standing of the Airline Reporting Corporation [2.1].

Conclusion

Based on the documents provided, it appears that offering contests that involve travel prizes in Illinois is not explicitly prohibited. However, organizations must obtain a license, have non-profit status, adhere to limitations on prizes, and comply with the Illinois Travel Promoters Act if the contest involves travel. It is important to note that this is not legal advice and organizations should consult with a legal professional to ensure compliance with all relevant laws and regulations.

[2.1]: 815 ILCS 420/2

[4.3]: 230 ILCS 15/2

Source(s):
Jurisdiction

Illinois