8 Colo. Code Regs. § 1505-2-8

Current through Register Vol. 47, No. 22, November 25, 2024

Rule 8 CCR 1505-2-8 - Raffles

8.1 General requirements. Licensees that conduct raffles shall comply with the following:

8.1.1 Selling tickets

(a) Except as provided in Rule 8.1.1(e), only members of the licensee may sell tickets for entry into a raffle drawing. Members must not receive remuneration for selling raffle tickets and must not sell raffle tickets while they are receiving compensation for performing regular duties for the licensee.

(b) A licensee must sell tickets for entry in a raffle drawing at a stated price, and each ticket must constitute a separate and equal chance to win.

(c) A licensee must provide any conditions that may affect the stated price of a raffle ticket to the public before the sale of the first raffle ticket. If any of the following apply, then the licensee must provide the information to the ticket purchaser at the time of sale:

(1) The date(s) that the price of an individual ticket or group of tickets may increase or decrease;

(2) Any discounted price that is based on the purchase of a minimum number of tickets; and

(3) The method of determining the number of tickets at a set price, such as in a stretch raffle.

(d) A licensee may sell raffle tickets at bingo occasions if:

(1) The proceeds from raffle ticket sales are recorded separately from bingo sales; and

(2) Purchase of a raffle ticket is not conditioned on the purchase of bingo cards or faces, pull tabs, or payment of an admission fee to play bingo.

(e) Licensees may contract with a call fulfillment center to process raffle ticket orders if:

(1) The call fulfillment center only receives incoming calls from ticket-purchasers and processes ticket-purchaser information;

(2) The call fulfillment center does not process payments for raffle tickets and does not make outgoing calls to solicit purchases or encourage incoming callers to purchase additional raffle tickets; and

(3) The licensee submits a form prescribed by the Secretary of State that contains details of the agreement between the licensee and the call fulfillment center before the sale of raffle tickets through the call fulfillment center.

8.1.2 Format of tickets. All tickets must be discrete from every other ticket sold and may be identified by symbols, numbers, color, design or combination thereof.

8.1.3 Ownership of prizes. The licensee must fully own merchandise offered as a raffle prize except as provided in Rule 8.2. The raffle prize must be free of debt, lien and encumbrance before the sale of raffle tickets.

8.1.4 If the total retail value of the raffle prize or prizes in a single raffle exceeds $1,000, a licensee must satisfy the following requirements:

Total Retail Value of Prizes Over $1,000
Requirement Type	When Ticketholder's Presence is Required To Win	When Ticketholder's Presence is Not Required To Win
		If licensee notifies winners by mail	If licensee notifies winners by online posting
Ticket Content	Print a paper ticket with the following: 1. License number; 2. Licensee name exactly as it appears on the license; 3. Date, time and place of the drawing; 4. Ticket cost; 5. Adequate description of the major prize(s) offered; 6. Date(s) when the ticket price will increase or decrease; 7. Cost if tickets purchased as a package; and 8. The word "RAFFLE."	Print a paper ticket with the following: 1. License number; 2. Licensee name exactly as it appears on the license; 3. Date, time and place of the drawing; 4. Ticket cost; 5. Adequate description of the major prize(s) offered; 6. Date(s) when the ticket price will increase or decrease; 7. Cost if tickets purchased as a package; and 8. The word "RAFFLE."	Print a paper ticket with the following: 1. License number; 2. Licensee name exactly as it appears on the license; 3. Date, time and place of the drawing; 4. Ticket cost; 5. Adequate description of the major prize(s) offered; 6. Date(s) when the ticket price will increase or decrease; 7. Cost if tickets purchased as a package; and 8. The word "RAFFLE."
	Print on each ticket a statement indicating that the ticketholder must be present to win prize.	Print on each ticket a statement indicating that the ticketholder need not be present to win prize.	Print on each ticket a statement indicating that the ticketholder need not be present to win prize.
	Print ticket stub providing for entry of ticketholder's name and mailing address if raffle tickets are sold on any day or at any location other than the day and location of the drawing.	Print ticket stub providing for entry of ticketholder's name and mailing address.	Print on each ticket the web address where the licensee will post the winning number, the period of time for which the winning number will be posted, and a phone number that ticketholders can call to verify the winning number.
Pre-Raffle Filing	Before the sale of any tickets, file a voided ticket for the raffle with the Secretary of State.	Before the sale of any tickets, file a voided ticket for the raffle with the Secretary of State.	Before the sale of any tickets, file a voided ticket for the raffle with the Secretary of State.
			At least 14 calendar days before any ticket sale, submit to the Secretary of State. the website address where winning ticket numbers will be posted The website must indicate when the winning ticket numbers will be available.
Claiming Prize	Provide a reasonable amount of time, not to exceed 30 minutes, for winner(s) to claim prize(s). If winner(s) fails to claim a prize, the licensee must continue drawing tickets until the prize is claimed.	Within 30 days of the drawing, notify all winners who have not claimed their prizes by U.S. postal service certified mail, return receipt requested. The notification must indicate the prize won, a contact person's telephone number, and the time and location where the winner may claim the prize(s). If a winner fails to claim a prize within 30 days of receiving notification, the licensee may retain the prize or offer it in another raffle.	Within 24 hours of the drawing, post all winning ticket numbers and a contact phone number to the website listed on raffle tickets. The winning ticket numbers and phone number must remain posted on the website for at least 30 days after the raffle drawing.
	Retain all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held.	Retain all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held.	Retain all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held.

8.1.5 If the total retail value of the raffle prize or prizes in a single raffle is $1,000 or less, a licensee must satisfy the following requirements:

Total Retail Value of Prizes $1,000 and Under
Requirement Type	When Ticketholder's Presence is Required To Win	When Ticketholder's Presence is Not Required To Win
		If licensee notifies winners by mail	If licensee notifies winners by online posting
Ticket Content		Print ticket stub providing for entry of ticketholder's name and mailing address.	Print on each ticket the web address where the licensee will post the winning number, the period of time for which the winning number will be posted, and a phone number that ticketholders can call to verify the winning number.
Pre-Raffle Filing			At least 14 calendar days before any ticket sale, submit to the Secretary of State the website address where winning ticket numbers will be posted. The website must indicate when the winning ticket numbers will be available.
Claiming Prize	Provide a reasonable amount of time, not to exceed 30 minutes, for winner(s) to claim prize(s). If winner(s) fails to claim a prize, the license must continue drawing tickets until the prize is claimed.	Within 30 days of the drawing, notify all winners who have not claimed their prizes by U.S. postal service certified mail, return receipt requested. The notification must indicate the prize won, a contact person's telephone number, and the time and location where the winner may claim the prize(s). If a winner fails to claim a prize within 30 days of receiving notification, the licensee may retain the prize or offer it in another raffle.	Within 24 hours of the drawing, post all winning ticket numbers and a contact phone number to the website listed on raffle tickets. The winning ticket numbers and phone number must remain posted on the website for at least 30 days after the raffle drawing.
	Retain all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held.	Retain all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held.	Retain all raffle ticket stubs and unsold tickets for six months following the quarter in which the raffle was held.

8.1.6 Cancelation. A licensee may not cancel a raffle after the first raffle ticket is sold unless the licensee demonstrates to the Secretary of State that it will provide a notice of cancelation to all ticket purchasers and refund the purchase amount to every purchaser.

8.1.7 Postponing or altering a drawing. A licensee must not alter or postpone a raffle after the first raffle ticket has been sold unless the licensee can demonstrate to the Secretary of State that purchasers of raffle tickets will not be adversely affected by a substitution of prizes or a change of time or location and that the information concerning the raffle specifically states that a purchaser need not be present at the drawing to win.

8.1.8 A licensee may not conduct more than one regular (non-progressive) raffle drawing at a bingo occasion

8.2 Motor vehicle, real estate, or real estate under construction as a prize

8.2.1 A licensee may raffle a motor vehicle if:

(a) The raffle ticket contains information as to whether there are any encumbrances on the motor vehicle that the winner of the raffle will be subject to, including federal, state and local income taxes; and

(b) With respect to ownership of the motor vehicle:

(1) The licensee files proof of ownership of the motor vehicle with the Secretary of State; or

(2) A contract exists between the owner of the motor vehicle and the licensee to transfer title to the motor vehicle to the holder of the winning ticket under the following conditions:

(i) The licensee must maintain, during the course of the sale of raffle tickets and continuing through the date of the raffle drawing, a certificate of deposit in the amount of the purchase price of the motor vehicle described in the contract.

(ii) If the motor vehicle owner fails to transfer title, the licensee must use the certificate of deposit to purchase an equivalent motor vehicle for delivery to the holder of the winning ticket; and

(iii) Before the sale of the first raffle ticket, the licensee must submit evidence of the contract and certificate of deposit to the Secretary of State.

8.2.2 A licensee may raffle real estate, including real estate containing an existing house, if:

(a) The raffle ticket contains information as to whether there are any encumbrances on the real estate, including any existing house, that the winner of the raffle will be subject to, including a mortgage and federal, state and local income taxes; and

(b) With respect to ownership of the real estate, including any existing house:

(1) The licensee files proof of ownership (such as a real property transfer declaration); or

(2) A contract exists between the owner of the real estate and the licensee to transfer title to the real estate, including any existing house, to the holder of the winning ticket under the following conditions:

(i) The licensee maintains, during the course of the sale of raffle tickets and continuing through the date of the raffle drawing, a certificate of deposit or bond in the amount of the purchase price of the real estate, including any existing house, described in the contract.

(ii) If the owner fails to transfer ownership, the licensee must purchase equivalent real estate, including a house, for delivery to the holder of the winning ticket; and

(iii) Before the sale of the first raffle ticket, the licensee must submit evidence of the contract and certificate of deposit or bond to the Secretary of State.

8.2.3 A licensee may raffle real estate that will include a house under construction if:

(a) The raffle ticket contains information as to whether there are any encumbrances on the real estate that the winner of the raffle will be subject to, including a mortgage and federal, state and local income taxes; and

(b) With respect to ownership:

(1) A contract exists between the owner of the real estate and the licensee to transfer title to the real estate and the house under construction to the holder of the winning ticket;

(2) The licensee maintains, during the course of the sale of raffle tickets and continuing through the date of the raffle drawing, a certificate of deposit or bond in the amount of the purchase price of the real estate and the house described in the contract;

(3) If the owner fails to transfer ownership, the licensee must purchase equivalent real estate, including an equivalent house, for delivery to the holder of the winning ticket; and

(4) Before the sale of the first raffle ticket, the licensee must submit evidence of the contract and certificate of deposit or bond to the Secretary of State.

8.3 Specific types of raffles

8.3.1 Key raffles. Licensees may conduct a key raffle where the purchaser receives a key that may open the particular prize being raffled, such as an automobile, if:

(a) The licensee conducts a raffle where the keys are sold only to participants at an event sponsored by the licensee;

(b) The purchaser selects the key from a receptacle containing all of the keys being sold;

(c) The licensee provides a separate paper ticket to the purchaser that contains a stub with the name, address and telephone number of the purchaser and each stub sold is placed in a separate receptacle containing all stubs sold. The receptacle must be designed so that each stub has an equal chance of being drawn; and

(d) In the event that not all keys are sold, and none of the keys that are sold will open the prize, the licensee determines the winner by drawing a ticket stub from the receptacle containing all stubs sold.

8.3.2 Card raffles. A licensee may conduct a card raffle where the purchaser receives a card containing numbers, symbols, colors or a combination thereof, where one-half of the card is torn off and placed in the receptacle from which the winning card will be drawn if:

(a) The portion of each card deposited into the receptacle is approximately the same size and shape as all other portions deposited; and

(b) Each card sold is distinct from every other card sold, although multiple decks of playing cards may be used if the decks are of different colors or design.

8.3.3 Bucket raffles

(a) A licensee may conduct bucket raffles using theater style tickets only if the total retail value of the prizes offered for a specific receptacle in which raffle tickets are placed does not exceed $1,000.

(b) If the total retail value of the prizes offered for a specific receptacle in which raffle tickets are placed exceeds $1,000, the licensee must print a ticket conforming to Rule 8.1.4.

(c) The licensee must either display merchandise prizes or display descriptions of merchandise prizes offered for each receptacle.

8.3.4 Sporting event raffles. A licensee may conduct raffles where the winner is determined based on scores from sporting events if and only if the licensee can demonstrate to the Secretary of State that each ticket sold has an equal chance to win with every other ticket sold.

8.3.5 Wheel raffles. A licensee may conduct a wheel raffle where the winning ticket is determined by spinning a wheel until a pointer lands in one of the discrete segments marked on the wheel.

(a) The number of raffle tickets must be less than or equal to the number of discrete numbers or symbols on the wheel, and each ticket sold must match only one of the numbers or symbols on the wheel.

(b) If fewer tickets than the number of segments are sold, the licensee must continue to spin the wheel until there is a winner.

(c) A licensee may use a wheel containing symbol(s), 0, or 00 only if it offers to sell tickets for those segments.

8.3.6 Stretch raffles. A stretch raffle is a raffle where the number of raffle tickets purchased for a set price is determined by a specific measurement method. For example, a stretch raffle may use a raffle participant's arm span to determine how many raffle tickets may be purchased for a set price. A licensee may conduct a stretch raffle only if the same measurement method is used to determine the number of tickets for all purchasers.

8.4 Progressive raffles. In addition to all other applicable raffle requirements, a licensee that conducts a progressive raffle must comply with the following:

8.4.1 Progressive raffle games are restricted to members-only progressive drawings and playing card progressive raffles as follows:

(a) Members-only progressive drawings

(1) Licensee members are given the opportunity to buy raffle tickets.

(2) At the drawing, the licensee places the names of all members or a subset of members into a pool and selects one name. The names of each member who bought a progressive raffle ticket for a specific drawing must be included in the pool for that drawing.

(3) If the member whose name is drawn purchased a ticket for that drawing, that member wins the raffle prize amount, consisting of the prize money accumulated since the last winning draw.

(4) If the member whose name is drawn did not purchase a ticket for that drawing, there is no winner and the prize amount is added to the jackpot for the next drawing.

(b) Playing card progressive raffles

(1) A licensee may conduct a playing card progressive raffle game by selecting the winning card called the "Jackpot Prize Card" from either:

(i) A specifically designed prepackaged game purchased from a licensed supplier which contains images of a standard deck of 52 cards or a standard deck of 52 cards plus two joker cards (for a total of 54 playing card images); or

(ii) A standard deck of 52 cards or a standard deck of 52 cards plus two joker cards (for a total of 54 playing cards).

(2) If using a prepackaged game:

(i) The board must have a serial number and the licensee must retain the used board for at least six months after the final game.

(ii) The licensee must post the Jackpot Prize Card for the raffle with the board's serial number at the location of the progressive raffle game. The licensee must post Jackpot Prize Card so that it is both out of all players' reach but also fully visible to all players.

(iii) The licensee must break or tear open the Jackpot Prize Card's window in plain view of all individuals present.

(3) If using a playing card deck with envelopes or other containers:

(i) The licensee must place the cards from the deck in identical separate envelopes or other containers, one card per container, through which the card is not visible. The container must be sealed so that the licensee must tear, break, or rip a portion of the container in order to access the card.

(ii) Before sealing cards in the containers, the games manager and at least one other licensee member must verify that all cards are present.

(iii) The licensee must shuffle the envelopes containing the cards before putting them on public display.

(iv) Once the licensee places the envelopes on display, the licensee must keep them in a locked container at all times except during drawings. Only the games manager and licensee officers are allowed access to the keys for the container.

(4) For both methods of playing card progressive raffles:

(i) After selling raffle tickets, the licensee must hold a drawing with the pool containing all tickets purchased for that drawing.

(ii) The purchaser of the drawn ticket is given the opportunity to select one or more of the windows or envelopes. The number of windows or envelopes selected per draw must remain constant throughout the progression.

(iii) If the ticket purchaser selects the window or envelope containing the Jackpot Prize Card, the ticket purchaser wins the raffle prize amount, consisting of the prize money accumulated since the last winning draw.

(iv) If the ticket purchaser's selected window or envelope does not contain the Jackpot Prize Card, there is no winner and the prize amount is added to the jackpot for the next drawing.

8.4.2 Additional rules for both methods of playing card progressive raffles

(a) A ticket holder must be present at the drawing in order to claim a progressive raffle prize. If the winning ticket purchaser is not present at the drawing, the licensee must continue to draw tickets until selecting a ticket purchaser who is present.

(b) If the window or envelope selected by the drawing winner does not contain the Jackpot Prize Card, the licensee must display the selected card at all future drawings until the licensee awards the jackpot prize.

(c) The licensee must determine the amount of the jackpot based on a percentage of gross raffle ticket sales from each raffle in the progressive sequence, not to exceed 70%.

(d) The licensee may offer a cash consolation prize for a winning ticket purchaser that does not select the Jackpot Prize Card.

(1) Consolation prizes do not count against the $15,000 maximum progressive raffle prize limit.

(2) Before conducting a progressive raffle offering a consolation prize, the licensee must designate the consolation prize as either a specified amount or a specified percentage of the gross proceeds collected from the sale of raffle tickets for a particular drawing.

8.4.3 The licensee may conduct a maximum of one playing card progressive raffle and one members-only progressive raffle simultaneously.

8.4.4 Progressive raffles ticket sales

(a) If the licensee only sells progressive raffle tickets to licensee members, Rule 8.1.4 requirements do not apply.

(b) Tickets sold for a specific drawing are void and ineligible for future drawings.

(c) The licensee must determine ticket prices before selling progressive raffle tickets and must not change ticket prices for any drawing in that progressive sequence.

8.4.5 Progressive jackpot prizes

(a) A progressive raffle jackpot prize must not exceed $15,000. When the jackpot prize reaches $15,000, the licensee must award it in the following manner:

(1) In a members-only drawing, the licensee must continue to draw member names until a member who purchased a ticket is drawn. The licensee must award the progressive raffle prize to that member.

(2) In a playing card progressive raffle, the licensee must either:

(i) Award the jackpot to the ticket purchaser whose ticket is first drawn after the prize limit is reached; or

(ii) Determine the winner by drawing raffle tickets and allow ticket holders to select envelopes until a drawing winner selects the jackpot prize card.

(b) The licensee must retain any proceeds from raffle tickets sold after the progressive prize reaches the $15,000 prize limit.

(c) A licensee may impose a progressive raffle jackpot maximum below the $15,000 maximum set by these rules. Upon reaching the self-imposed maximum, the licensee must award the jackpot according to procedures listed in Rule 8.4.5(a). The licensee must post notice of self-imposed maximums in accordance with Rule 8.4.6.

(d) A licensee may seed a single progressive raffle with an amount not to exceed $500.

8.4.6 Required postings. In addition to any postings otherwise required by these rules, a licensee that conducts a progressive raffle must also post a sign in at least 12-point font and in a conspicuous location stating:

(a) The amount of the progressive raffle jackpot and any consolation prizes;

(b) The percentage of gross sales of progressive raffle tickets that will be contributed to the jackpot;

(c) If applicable, the maximum number of progressive raffle drawings without a jackpot winner or the maximum jackpot amount before the licensee will automatically award the prize according to procedures listed in Rule 8.4.5(a);

(d) If the jackpot is not awarded, the date, time, and location of the occasion at which the next drawing will occur; and

(e) In a playing card progressive raffle, the Jackpot Prize Card and the number of envelopes to be selected per drawing.

8.4.7 Conditions affecting the award of the final progressive raffle jackpot prize

(a) If the licensee plans, expects, or otherwise foresees the occurrence of an event listed in (1), (2), or (3) below, the licensee must ensure that it can still determine a winner and award the progressive raffle jackpot prize before the occurrence of the event on the last posted drawing date at the location where the progression was started:

(1) Permanent termination of licensee's operations;

(2) Permanent termination of licensee's operations at a particular location; or

(3) Loss of license through expiration, nonrenewal, suspension, revocation, or surrendering.

(b) If an event in Rule 8.4.7-(3) occurs without the licensee's foreknowledge before the date of the last posted drawing date, the licensee must contact the Secretary of State for approval of a means of determining a winner and awarding any jackpot prize(s).

8.5 Games not classified as raffles. The games of chance commonly known as "Animal Plop Bingo," "Golf Ball Drops," plastic or rubber "Duck Races," "Coin Flip Games," and variations of these games are not raffles as defined by section 24-21-602(38), C.R.S., and are not raffles as authorized by subsections (2) to (4) of Section 2 of Article XVIII of the Colorado Constitution. Therefore, these games of chance are not licensed or regulated by the Secretary of State. In certain circumstances, these games of chance may be considered unlawful gambling. Licensees or other organizations who wish to conduct these games should contact law enforcement authorities or legal counsel to determine how to comply with Colorado law.

8 CCR 1505-2-8

Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/2014

40 CR 17, September 10, 2017, effective 9/30/2017

44 CR 19, October 10, 2021, effective 11/1/2021

46 CR 05, March 10, 2023, effective 3/31/2023

47 CR 18, September 25, 2024, effective 10/15/2024