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(1) A raffle sponsor must make all raffle terms available to the public prior to the sale of any raffle tickets. In all cases a raffle sponsor must establish and make available the date of the raffle drawing. Other raffle terms may include:

(a) the name and contact information of the raffle sponsor;

(b) persons eligible or ineligible to purchase tickets;

(c) locations where sales are known to be prohibited;

(d) cost of raffle tickets;

(e) a complete description of the prize(s) and its value;

(f) an estimated number of tickets to be sold which may be unlimited;

(g) the date ticket sales close; and

(h) the method of drawing winning ticket(s).

(2) The following random selection processes are authorized for use in determining a winner of a raffle as defined in 23-5-112, MCA:

(a) a drawing from a drum or other receptacle containing raffle ticket stubs or other suitable indicators of the ticket purchaser's identity that have been thoroughly mixed before the drawing;

(b) an approved 50/50 raffle electronic processing system containing a random number generator; and

(c) selection by any other process if:

(i) the process is reasonably assured of being random and is not connected to an event that has its own intrinsic significance (e.g., a sports event, game of chance, contest); and

(ii) the indicator of the raffle ticket purchaser's identity reasonably assures the random selection of a winner.

(3) Any raffle conducted by a nonprofit organization, college, university, public school district as provided in 20-6-101 and 20-6-701, MCA, or nonpublic school as described in 20-5-102(2)(e), MCA, must be publicly identified as a charitable raffle.

(4) Prior to conducting a raffle on the internet, a nonprofit organization must first complete a one-time registration form (Form 46) supplied by the department.

(5) A raffle sponsor's challenge to the department's intended action to refuse registration as a nonprofit must proceed under ARM 23.16.203.

(6) For each raffle conducted, the entity conducting the raffle shall maintain for a period of 12 months from the date of the raffle drawing, and provide to the department upon request:

(a) a record of the total proceeds collected;

(b) a detailed description of the prize(s) awarded;

(c) a description of the selection process used to determine the winner(s);

(d) a record reflecting the source of the prize(s), including any money paid to purchase prizes;

(e) a record of any administrative costs paid with raffle proceeds;

(f) a description of how the raffle was publically identified as a charitable raffle, where applicable;

(g) the name and address of the person(s) awarded raffle prize(s); and

(h) a detailed record of the distribution of the charitable raffle proceeds, where applicable.

(7) For any violation of this rule, the department may pursue remedies available under 23-5-136, MCA.


History: 23-5-115, 23-5-413, MCA; IMP, 23-5-112, 23-5-413, MCA; NEW, 1991 MAR p. 1942, Eff. 10/18/91; AMD, 2009 MAR p. 1260, Eff. 7/31/09; AMD, 2017 MAR p. 1893, Eff. 10/14/17; AMD, 2019 MAR p. 302, Eff. 3/16/19.

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