Iowa Admin. Code r. 481-100.32

Current through Register Vol. 47, No. 10, November 13, 2024

Rule 481-100.32 - Raffles

A valid raffle shall only occur during the period of the license. The license must be in effect before promotions for the raffle can begin. The gambling event begins when the first ticket is sold and ends when winning numbers are drawn. Calendar raffles do not comply with raffle criteria and are not allowed.

(1) A licensee may conduct an unlimited number of small raffles during a license period. Cash or merchandise prizes may be awarded. Individual prizes or aggregate prizes for one small raffle may not exceed $10,000 in value. Raffle winners cannot be required to be present to win. The prize may be a single item or several items. The cost to play is not limited.

(2) An annual raffle (also referred to as a large raffle) may be held once per calendar year with prizes, including real property or merchandise, having a combined value greater than $10,000. The cost to play is not limited. If a raffle licensee holds a statewide raffle license, the licensee may hold not more than eight raffles per calendar year at which real property or one or more merchandise prizes having a combined value of more than $10,000 may be awarded. Each such raffle held under a statewide license shall be held in a separate county. Withholding requirements are explained in department of revenue 701-subrule 46.1(1).

(3) If a prize is merchandise, its value shall be determined by the purchase price paid by the organization or donor

(4) A qualified organization licensee may hold one real property raffle per calendar year in lieu of an annual raffle. The department shall conduct a special audit to verify compliance with the following requirements:

a. The licensee has submitted a real property raffle license application and a fee of $100 to the department.

b. The license is prominently displayed at the drawing area.

c. The real property was acquired by gift or donation or has been owned by the licensee for a period of at least five years.

d. Receipts from the raffle are kept in a separate financial account.

e. A cumulative report for the raffle on a form determined by the department and I percent of gross receipts are submitted to the department within 60 days of the raffle drawing. The payment of I percent of the gross receipts shall be made payable to the Iowa Department of Inspections and Appeals.

f.All other requirements of Iowa Code sections 99B.2 and 99B.7 are met.

(5) A licensee may offer raffle tickets for sale at a discounted rate if the discount is applied in a nondiscriminatory manner The discount must be available to all persons throughout the duration of the raffle and must be posted on all promotional material.

(6) A ticket, coupon, or card shall not be used as a door prize or given to a participant of a raffle, game of bingo, or game of chance if the use of the ticket, coupon, or card would change the odds of winning for participants of the raffle, game of bingo, or game of chance.

This rule is intended to implement Iowa Code sections 99B.1(21), 99B.1(22) and 99B.7(1).

Iowa Admin. Code r. 481-100.32