Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1.
Raffle ticket requirements.
Raffle ticket requirements are as follows.
A. Raffle tickets must have a detachable
section and both parts must be sequentially numbered, starting with the number
"1" and continuing through the maximum number of tickets to be sold. This does
not pertain to raffle tickets that may be used only by exempt or excluded
organizations under Minnesota Statutes, section
349.173,
paragraph (a).
B. Organizations may
purchase sequentially numbered raffle tickets in a quantity to be used for more
than one raffle of the same type that occur only during the same month. Raffle
tickets must have a detachable section and both parts must be sequentially
numbered starting with the number "1" and continuing through the entire
quantity of tickets purchased. Tickets purchased under this subpart must be
tracked using an inventory format prescribed by the board.
C. Except for raffle board stubs, the
detachable section must contain spaces for the purchasers name, address, and
telephone number.
D. The following
information must be printed on each ticket:
(1) organization name and license or
exemption number;
(2) date, time,
and location of the selection or determination of winning entries;
(3) sequential number of the
ticket;
(4) ticket price;
and
(5) at a minimum the three most
valuable prizes to be awarded, including a statement regarding the winners
responsibility for any applicable fees or taxes. If all prizes are not listed
on the raffle ticket, the ticket must contain the statement "A complete list of
additional prizes is available upon request."
E. Raffle tickets must not contain the words
"suggested donation" or any other implied request for money, other than the
price printed on the raffle ticket.
F. The invoice or documentation for the
printing of the tickets must show who printed the tickets, the quantity of
tickets printed for each price level, the range of the sequential numbers, and
the selling price printed on the tickets.
G. All raffle tickets must be the same size,
shape, and thickness.
Subp.
2.
Multiple pricing levels of raffle tickets.
A raffle may consist of multiple sets of tickets sold at
different prices if the tickets comply with the following requirements.
A. Each price level of tickets must have a
separate set of sequentially numbered tickets starting with number "1" through
the maximum number of tickets to be sold at that price level.
B. Each set of tickets must be clearly
identifiable from other tickets for the same raffle sold at a different price
level.
C. All raffle tickets must
be the same size, shape, and thickness.
D. The invoice for the printing of the
tickets must show the quantity of tickets printed for each price level, the
range of the sequential numbers, and the selling price printed on the
tickets.
E. The organization must
keep a separate raffle log for each set of tickets.
Subp. 3.
Posting of information and
house rules.
In addition to the information required by part
7861.0260, subpart
2, items A and B, an
organization must prominently post clear and legible house rules at the point
where winners are determined. The house rules must include, at a minimum, the
following:
A. method and policy of
selecting or determining winners;
B. statement that the winner need not be
present;
C. policy on accepting
checks and debit card payments;
D.
statement that the purchase of only one ticket or certificate of participation
is required to enter the raffle;
E.
explanation of multiple pricing levels, if any;
F. persons under age 18 may not purchase a
raffle ticket or certificate of participation or win a prize; and
G. if wine, beer, or intoxicating liquors are
awarded as a raffle prize, persons must be age 21 and older to win, as required
by Minnesota Statutes, section
340A.707.
Subp. 4.
Conducting a
raffle.
The following items apply to the conduct of raffles as allowed
under Minnesota Statutes, section
349.173.
A. Each entry in a raffle must have an equal
chance to win in the raffle.
B. The
organization may not require a person to purchase more than one ticket or
certificate of participation, or to pay for anything else to enter a
raffle.
C. An organization must
sell each ticket for the price printed on the ticket. The organization must not
give a player any ticket free of charge or for any other
consideration.
D. The organization
may not require a person to be present at a raffle to be eligible to win a
prize.
E. Each seller must return
to the organization all unsold tickets and the stubs or other detachable
section of all tickets sold before the drawing.
F. Tickets or certificates of participation
must not be sold after the organization has started the prize selection
process.
G. When tickets are used,
the following apply:
(1) before the first
drawing for a prize, the organization must place all the stubs or other
detachable section of every ticket sold into a receptacle from which the
winning tickets must be drawn; and
(2) the receptacle must be designed so that
each ticket placed in it has an equal chance to be drawn.
H. The organization must account for all
proceeds and unsold tickets.
Subp.
4a.
Conducting a raffle using a raffle board.
A. Organizations excluded from raffle
licensing requirements under Minnesota Statutes, section
349.166,
subdivision 1, paragraph (c), may not conduct raffles using a raffle
board.
B. Raffles using raffle
boards are subject to the conduct requirements in subpart
4.
C. All chances for a raffle conducted with a
raffle board must be available on one raffle board and be sold for the same
price.
D. Raffles conducted with a
raffle board may only be sold at the permitted premises where the winner of the
raffle will be determined.
E. The
following information must be written, in ink or permanent marker, by the
organization on the raffle board prior to the sale of the first raffle board
entry:
(1) organization name and license
number;
(2) date, time, and
location of winner selection;
(3)
the price per raffle entry;
(4) the
board-approved method of winner selection; and
(5) at a minimum, the three most valuable
prizes to be awarded, including a statement regarding the winners
responsibility for any applicable fees or taxes. If all prizes are not listed
on the raffle board, the raffle board must contain the statement "A complete
list of additional prizes is available upon request."
F. Raffle boards must not contain the words
"suggested donation" or any other implied request for money, other than the
entry price printed on the raffle board.
G. Each square on a raffle board must have a
unique number. If the board includes stubs, each detachable stub must have an
identical number matching its square for determining a winning
selection.
H. A participants proper
name and contact information must be recorded on the selected square as entry
into the raffle.
I. Detachable
stubs must be uniform in size and attached to each raffle board square that,
when sold and removed, are placed in a container for a random drawing of a
raffle winner.
J. The drawing of
the winning raffle stub must not occur earlier than the time printed on the
raffle board or more than 30 minutes after the time printed on the raffle
board.
K. Unsold stubs attached to
a raffle board may not be removed from the raffle board.
L. Raffle boards may not leave the permitted
premises once the first raffle entry is sold until after the winner has been
determined.
M. Entries on a raffle
board may not be sold after the prize selection process has begun.
N. The person conducting the raffle board
must date and sign the raffle board upon conclusion of the raffle.
O. The organization must retain raffle boards
for 3-1/2 years.
Subp.
5.
Conducting a calendar raffle.
An organization may conduct a calendar raffle in which the
raffle ticket is a calendar containing a detachable stub.
A. A licensed organization may conduct
drawings for a calendar raffle on more than one date.
B. An exempt organization must conduct
drawings for a calendar raffle on the date or dates authorized by the board in
compliance with Minnesota Statutes, section
349.166.
Subp. 6.
Conducting an
alternative raffle.
If an organization uses an alternative method of selecting
winners other than as prescribed in subpart
4, item G, the organization
must obtain prior approval of the board. The request must include at a
minimum:
A. organization's name and
license or exemption number;
B.
premises name and address where the raffle will be conducted;
C. type of random selection process to be
used for determining winners;
D.
details of the operation and conduct of the raffle, including method for
selling certificates of participation;
E. record-keeping and accounting procedures
for the raffle;
F. date
organization membership approved the raffle and alternative method of selecting
winners; and
G. signature of chief
executive officer.
In considering the request, the board must ensure that the
raffle and the alternative method of selecting winners comply with statutory
and rule requirements for raffles. If approved, the alternative method may be
used for future raffles by all organizations without additional board approval.
The approval or denial must be made available upon request and must be posted
on the board's Web site.
Subp. 7.
Conducting a button
raffle.
An organization may conduct a "button raffle" allowed under
Minnesota Statutes, section
349.173,
paragraph (b), clause (2).
A. When a
button is used as a certificate of participation, the button:
(1) must be sequentially numbered and have a
corresponding ticket for the drawing;
(2) may be used by the holder for a free or
reduced entry fee to an event that is sponsored by the organization, community,
or other entity if there is no cost to the organization for the additional
value of the button; and
(3) may be
used to obtain merchandise for a reduced price or free.
The organization must account for all sold and unsold buttons
and keep all corresponding tickets from the unsold buttons. Unsold buttons may
be discarded.
B.
When a button is provided with a certificate of participation:
(1) the certificate of participation must
contain the information required in subpart
1, item D, and comply with
subpart
1, items E, F, and G;
(2) the provisions of item A,
subitem (2), apply; and
(3) the
organization must account for all sold and unsold certificates. Unsold buttons
may be discarded.
Subp.
7a.
Conducting a 50/50 raffle.
An organization may conduct a raffle in which the prize amount
is 50 percent or any other percentage of the raffle's gross receipts.
A. The percentage of the gross receipts to be
awarded as a prize must be clearly printed on the raffle tickets.
B. Prior to the drawing, the gross receipts
must be tallied and the prize amount must be announced.
Subp. 8.
Raffle date.
An organization must select all raffle winners at the date,
time, and location printed on the raffle tickets or certificates of
participation.
A. An organization may
request that the board's director allow the organization to change the raffle
date if:
(1) weather has caused a postponement
of the event at which the selection or determination of raffle winners was to
occur;
(2) not enough tickets were
sold to cover the cost of the prizes. The fact that a desired level of profit
will not be reached is not a basis for extending the date; or
(3) other circumstances exist beyond the
organization's control.
B. If a raffle date change is approved by the
board's director, the organization must publicize that fact to purchasers of
the tickets and document the approved date change in its monthly meeting
minutes.
Subp. 9.
Canceling a raffle; issuing refunds.
To cancel a raffle an organization must comply with the
following.
A. A raffle may only be
canceled with approval of the board's director.
B. After receiving approval, the organization
must return all money to persons who purchased a chance to participate in the
raffle. If the organization is unable to locate a person within 30 days after
reasonable attempts via mail and telephone, the organization must deposit the
receipts and report them on the monthly tax return.
C. The organization must keep documentation
with the raffle records showing the attempts made to reach all persons who
purchased a chance to participate in the raffle.
D. A person is entitled to claim a refund for
up to one year from the date of the canceled raffle.
Subp. 10.
Raffle log required.
An organization must maintain a raffle log including, at a
minimum:
A. organization
name;
B. total quantity of tickets
printed or the sequential numbers of the tickets used in each raffle;
C. price per ticket;
D. date of the raffle; and
E. information for each person given tickets
to sell, including:
(1) persons name and
telephone number;
(2) quantity and
sequential number of tickets given to each person for sale;
(3) quantity of tickets sold;
(4) quantity and ticket numbers of the
tickets returned unsold;
(5) actual
gross receipts reported by each person;
(6) actual cash or debit card payment
received from each person; and
(7)
cash long or short reported by each person.
F. A raffle conducted using a raffle board is
exempt from the raffle log requirement.
Subp. 11.
Raffle records and
reports.
For each raffle conducted, an organization must keep the
following records for 3-1/2 years from the end of the month on which the raffle
was reported as played on the tax return:
A. total amount of gross receipts;
B. total value of all prizes awarded in each
raffle;
C. when tickets are used,
the winning ticket stubs;
D. raffle
log;
E. copy of the raffle ticket
for each price level;
F. all unsold
tickets;
G. raffle board, and if a
raffle board is used, items D and E are not applicable;
H. for licensed organizations, if tickets are
used, a copy of the invoice or documentation for the printing of the tickets
showing who printed the tickets, the quantity of tickets printed, the range of
the sequential numbers used, and selling price printed on the tickets;
and
I. if certificates of
participation were used, records that comply with the information required in
this subpart.
With the exception of unsold and winning raffle ticket stubs
and raffle boards, an organization may maintain or convert and store raffle
records and reports in an electronic format. An organization must make records
and reports available in paper format to the board, the commissioner of
revenue, the commissioner of public safety, or their agents upon
request.
Subp.
12.
Disposal of raffle tickets and records.
The following items apply to the disposal and destruction of
tickets and records.
A. A licensed
organization may dispose of raffle tickets or certificates of participation and
records after 3-1/2 years from the date the raffle was reported on the tax
return.
B. An exempt organization
authorized to conduct a raffle under Minnesota Statutes, section
349.166,
subdivision 2, may dispose of raffle tickets or certificates of participation
and records after 3-1/2 years from the date the financial information for the
raffle was reported to the board.
C. An organization must keep the tickets or
certificates of participation and records after the retention period in item A
expires if they are notified by the board, commissioner of revenue,
commissioner of public safety, or their agents that an audit, compliance
review, or investigation is being conducted.
Statutory Authority: MS s
14.055;
349.12;
349.151;
349.154;
349.155;
349.16;
349.162;
349.163;
349.1635;
349.165;
349.166;
349.167;
349.169;
349.17;
349.1711;
349.1721;
349.173;
349.19;
349.191;
349.211
