§ 50-274. Conduct and administration.

(a)

Operating restrictions.

(1)

The conducting of raffles is subject to the following restrictions:

a.

The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game.

b.

No person except a bona fide member of the sponsoring organization may participate in the management or operation of the raffle.

c.

No person may receive any remuneration or profit for participating in the management or operation of the raffle.

d.

A licensee may rent premises on which to determine the winning chance or chances in a raffle only from an organization that is also licensed under this article.

e.

Raffle chances may be sold or issued only within the area specified on the license and winning chances may be determined only at those locations specified on the license.

f.

No person under the age of 18 years may participate in the conducting of raffles or chances. A person under the age of 18 years may be within the area where winning chances are being determined only when accompanied by his parent or guardian.

(2)

If a lessor rents premises where a winning chance on a raffle are determined, the lessor shall not be criminally liable if the person who uses the premises for the determining of winning chances does not hold a license issued by the governing body of any county or municipality under the provisions of this article.

(b)

Raffles manager; bond. All operation and conduct of raffles shall be under the supervision of a single raffle manager designated by the organization. The raffle manager shall give a fidelity bond in the sum of $5,000.00 in favor of the organization conditioned upon his honesty in the performance of his duties. Terms of the bond shall provide that notice shall be given in writing to the licensing authority not less than 30 days prior to its cancellation. The board of trustees may waive this bond requirement by including a waiver provision in the license issued to an organization under this chapter, provided that a license containing such waiver provision shall be granted only by unanimous vote of the members of the licensed organization.

(c)

Records to be kept.

(1)

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 district of net proceeds shall be itemized as to payee, purpose, amount and date of payment.

(2)

Gross receipts from the operation of raffle programs shall be segregated from other revenues of the organization, including bingo gross receipts, if bingo games also are conducted by the same nonprofit organization, pursuant to license therefore issued by the state department of revenue, and placed in a separate account. Each organization shall have separate records of its raffles. The person who accounts for gross receipts, expenses and net proceeds from the operation or raffles shall not be the same person who accounts for other revenues of the organization.

(3)

Each organization licensed to conduct raffles shall report promptly after the conclusion of each raffle to its membership, and to the licensing local unit of government, its gross receipts, expenses and net proceeds from raffles, and the distribution of net proceeds itemized as required in this section.

(4)

Records required by this section shall be preserved for three years in the office of the village clerk, and organizations shall make available their records relating to operation of raffles for public inspection at reasonable times and places.

(d)

Gambling prohibited. Nothing in this chapter shall be construed to authorize the conducting or operating of any gambling scheme, enterprise, activity or device other than raffles as provided for in this article.

(e)

Penalty. Any person, firm or corporation violating any provision of this article shall be subject to a penalty as set forth in section 1-8 for each offense, and a separate offense shall be deemed committed on each day during or on which a violation occurs or continues.

(Ord. No. 03-2004, § 1(10-460), 1-5-2004)