Or. Admin. R. 137-025-0290

Current through Register Vol. 63, No. 6, June 1, 2024

Section 137-025-0290 - Conduct of Raffles in General

(1) Tickets for entry into a raffle shall constitute a separate and equal chance to win with all other tickets sold or issued. No person may be required to obtain more than one ticket, or to pay for anything other than the ticket, in order to enter a raffle.

(2) No person may be required to be present at a raffle drawing in order to be eligible to receive a prize.

(3) In conducting a drawing in connection with any raffle, each ticket seller shall return to the organization stubs or other detachable sections of all tickets sold. Except for duck races as provided for in OAR 137-025-0291 and alternate drawing formats approved by the Department in section (8) of this rule, the organization shall place each stub or other detachable section of each ticket sold in a receptacle out of which the winning tickets are to be drawn. The receptacle must be designed so that each ticket placed therein has an equal opportunity with every other ticket to be the one withdrawn.

(4) No unsold ticket or stub shall be entered in the draw container or be otherwise considered for the draw to determine the winner or winners of any prize.

(5) Where prizes for a raffle are unclaimed, the prizes shall be held in a trust for a period of six months from the date of the draw. If at that time the prizes are unclaimed, the prize shall be donated to the licensee. The licensee shall make reasonable efforts to notify the winner. Once the prize is claimed by the winner, the prize must be awarded within a reasonable period of time.

(6) A raffle licensee shall not sell tickets more than twelve months in advance of the draw date.

(7) If due to circumstances beyond an organization's control a raffle cannot be completed or the prizes cannot be awarded on the scheduled drawing date, the sponsoring organization must take all steps necessary to notify ticket purchasers of that fact and return all money received from ticket purchasers within 30 days. The fact that ticket sales failed to meet the organization's projections or expectations is generally not considered to be a circumstance beyond the organization's control and does not, in itself, provide a basis for cancellation of a raffle.

(8) An alternate drawing format, including use of random number generators, may be used to determine the winner(s) if such a format is approved by the Department prior to the sale of any ticket or other form of raffle entry. The alternate format must meet the definition of a drawing as defined in OAR 137-025-0020

(9) To be approved, an alternate drawing format request must be submitted to the Department in writing at least 30 days prior to the sale of entries and must contain at a minimum, the following information:

(a) The time, date and location of the drawing;

(b) The type of random selection process to be used and complete details of its operations;

(c) A description of how game integrity will be ensured so that each participant has an equal chance of winning.

(10) A 50/50 raffle is defined as a raffle in which the winner receives one half of the value of all tickets sold. Any expenses incurred by the organization cannot be deducted from the gross sales before distribution to the winner. Cash prizes cannot exceed $5,000.

(11) An organization must own or have a purchase agreement in place to ensure its ability to provide the advertised prize(s) to be raffled prior to the commencement of ticket sales. For motor vehicle prizes, the organization is required to provide the Department with documents showing clear title, the dealer invoice, or the purchase agreement. If the vehicle is used or custom, the organization must also provide a written appraisal by a licensed appraiser verifying its advertised value and mileage. It is not permitted for an organization to sell raffle tickets in order to obtain the funds necessary to purchase the advertised prize.

(12) Any raffles offering a prize of cider, distilled liquor, malt beverage or wine must also adhere to the raffle regulations of the Oregon Liquor Control Commission. Any raffles offering a prize of a firearm must also adhere to the regulations of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

(13) The purchase price of a raffle ticket shall not be characterized as a "donation" or in a manner that otherwise represents, suggests, or implies that the raffle ticket purchase is tax deductible as a charitable contribution.

Or. Admin. R. 137-025-0290

JD 7-1987, f. 10-30-87, ef. 1-1-88; JD 2-1993, f. 6-21-93, cert. ef. 7-1-93; DOJ 13-2001, f. 12-28-01, cert. ef. 1-1-02; DOJ 8-2018, amend filed 05/30/2018, effective 5/31/2018

Statutory/Other Authority: ORS 464.250(1)

Statutes/Other Implemented: ORS 464.250(7)