N.Y. Comp. Codes R. & Regs. tit. 9 § 4620.22

Current through Register Vol. 46, No. 36, September 4, 2024

Section 4620.22 - Raffles

(a) Equipment. The equipment used in the conduct of raffles and the method of play shall ensure that each and every ticket to participate shall have an equal opportunity to be drawn as a winner.

(1) Raffle tickets, with the exception of the two-part "admission-style" tickets utilized in the game commonly known as a "50/50 raffle" shall reflect the following:

(i) name and, if required by section 4601.1(a) of this Title, the identification number of the authorized organization;

(ii) the location(s), date(s) and time(s) of the drawing(s);

(iii) the consecutively printed serial number of the ticket;

(iv) the price of the ticket;

(v) a list of the prizes offered;

(vi) the statement: "Ticket holders need not be present to win."; and

(vii) each ticket stub or receipt shall reflect the name, address and telephone number of the ticket purchaser, and the consecutively printed serial number of the ticket.

(2) Each part of a two part "admission-style" ticket used in the game commonly known as a "50/50 raffle" shall bear an identical, consecutively printed serial number, to be used in verifying the winning ticket.

(b) The play.

(1) No single prize shall exceed the sum of $100,000.

(2) The aggregate fair market value of all prizes to be offered or awarded by a licensee in raffles in any one calendar year (license period) shall not exceed $200,000.

(3) The method of drawing and determining the winning ticket(s) shall be clearly announced and described prior to drawing a ticket.

(4) Each drawing shall be conducted openly and in plain view of the ticket purchasers present.

(5) Raffle tickets may be sold, and raffle drawings may be conducted, during a licensed organization's games of chance license period, during a licensed organization's bingo occasions, and during the games of chance license periods and licensed bingo occasions conducted by an organization that is an affiliate of, or is auxiliary to, the organization licensed to conduct raffles, when permitted by the licensed auxiliary or affiliate.

(6) Raffle tickets may also be sold to the public outside the premises of an authorized organization or an authorized games of chance lessor or in municipalities, that have passed a local law, ordinance or resolution in accordance with sections 187 and 188 of the General Municipal Law that are located in the county in which the municipality issuing the license or the municipality in which the organization is authorized to conduct raffles pursuant to section 4601.1(c) of this Title is located, and in the counties that are contiguous to the county in which the municipality issuing the raffle license or in which the organization authorized to conduct raffles pursuant to section 4601.1(c) of this Title is located, provided the licensee or organization authorized to conduct raffles pursuant to section 4601.1(c) of this Title has received written approval, on a form prescribed by the commission, from each municipality to sell raffle tickets therein and provided that no sale of raffle tickets shall be made more than 180 days prior to the date scheduled for the final drawing of the winning raffle ticket(s).

(7) Internet and mobile device sales.

(i) No entity, other than an authorized organization to which the commission has issued a games of chance identification number and a raffle license, if applicable pursuant to General Municipal Law section 190-a(1), is permitted to sell raffle tickets through the internet or a mobile device.

(ii) No sale of a raffle ticket though an internet or a mobile device platform may occur unless the server or other electronic equipment that initiates the offering of a raffle ticket for sale and accepts a request to purchase such ticket is located in a municipality in this State in which the sale of such tickets is authorized as set forth in General Municipal Law section 189(13) and the purchaser of such ticket is located, at the moment of purchase, in this State. Locations shall be determined by the physical location of each of the purchaser and the server or other electronic equipment of the seller and not the purchaser or seller's usual address. An authorized organization's internet or mobile device raffle sale platform shall block any attempts to purchase a raffle ticket from a location outside of this State.

(iii) No sale of a raffle ticket though an internet or a mobile device platform may occur unless the purchaser of such ticket has first established a raffle ticket account with the authorized organization conducting such raffle. Such account shall include, for each purchaser:

(a) the purchaser's legal name;

(b) the purchaser's date of birth;

(c) an account number unique to such purchaser;

(d) the purchaser's address;

(e) the purchaser's electronic mail address; and

(f) the purchaser's telephone number.

(iv) No sale of a raffle ticket may be made to any person on the commission's self-exclusion list maintained pursuant to section 5403.2 of this article.

(v) No authorized organization shall outsource or otherwise delegate to another entity or person, including, without limitation, a third-party fundraising entity, the conduct of a raffle through the internet or mobile device.

(vi) Each authorized organization that proposes to sell a raffle ticket for a specifically identified raffle through an internet or a mobile device platform shall seek commission approval to conduct such raffle. To obtain such approval, an authorized organization shall, not less than 60 days before offering any tickets for sale on such platform:

(a) demonstrate to the satisfaction of the commission that the server or other electronic equipment that initiates the offering of a raffle ticket for sale and accepts requests to purchase such tickets is located in a municipality in this State in which the sale of such tickets is authorized as set forth in General Municipal Law section 189(13);

(b) demonstrate to the satisfaction of the commission, which may be done by providing evidence of competent native or third-party geolocation procedures, that such organization has geolocation technology in place to ensure that each purchaser of a ticket is located within this State;

(c) submit procedures to prevent minors from purchasing a raffle ticket through the authorized organization's internet or mobile application platform. An authorized organization shall implement any changes to such procedures as the commission may direct at any time. Such plan, at a minimum, shall include the following components:

(1) specification of parental control procedures to allow parents and guardians to exclude persons under the age of 18 from entering a raffle through the authorized organization's internet or mobile device platform. The authorized organization shall display conspicuously the specific steps a parent or guardian may take to implement parental controls;

(2) detailed explanation of the steps taken to prevent persons under the age of 18 from purchasing a raffle ticket through the authorized organization's internet or mobile device platform. The authorized organization shall explain what types of native or third-party age verification procedures are implemented to verify that each person entering a raffle with such authorized organization's internet platform or mobile application is not under the age of 18. The authorized organization shall explain the mechanism or mechanisms used to identify and deactivate accounts or purchases created or used by minors; and age verification and identification procedures to exclude persons under the age of 18 from creating an account or purchasing a raffle ticket on the authorized organization's internet platform or mobile application;

(3) procedures used to identify and deactivate accounts created or used by persons under the age of 18 and to exclude such persons from all raffles offered through such authorized organization's internet and mobile device platforms; and

(4) procedures to ensure that persons under the age of 18 do not receive promotional materials that relate to raffles held on authorized organization's internet and mobile device platforms;

(d) submit procedures to protect the privacy of ticket purchasers on such internet or mobile device platforms; and

(e) submit procedures to protect the security of personal information of ticket purchasers on such internet or mobile device platforms from unauthorized disclosure;

(f) submit procedures to ensure that no person on the commission's self-exclusion list maintained pursuant to section 5403.2 of this article may purchase a raffle ticket through the authorized organization's internet or mobile application platform.

(vii) Each authorized organization that the commission authorizes to sell raffle tickets for a specifically identified raffle through an internet or a mobile device platform shall have an ongoing duty to inform the commission of any material change to any of the procedures submitted pursuant to subparagraph (vi) of this paragraph or any material change in the anticipated performance of geolocation technology as described to the commission.

(viii) The commission may, in its discretion, revoke any approval given pursuant to this paragraph to conduct a raffle through an internet or mobile device platform if the commission has cause to believe that the conditions required by General Municipal Law section 189(16) will not be or are not being satisfied or are at significant risk of not being satisfied.

(ix) The commission may, in its discretion, declare an authorized organization ineligible to conduct raffle ticket sales though an internet or mobile device platform for a period of time, or for an indefinite time, if such authorized organization fails to comply with this paragraph or the conditions required by General Municipal Law section 189(16).

(8) Any supplier of software, platforms or electronic equipment designed to enable an authorized organization to conduct an internet or mobile raffle pursuant to paragraph (7) of this subdivision shall apply for a license as a games of chance supplier pursuant to General Municipal Law section 189-a and Part 4623 of this subchapter.

(9) No ticket shall be sold in conjunction with any raffle, including raffles in which winning tickets are scheduled to be drawn on multiple dates, more than 180 days prior to the date scheduled for the drawing of the last ticket in that raffle.

(10) All raffle tickets, with the exception of the two-part "admission-style" tickets used in the game commonly known as a "50/50 raffle," shall be sold at a uniform price per ticket, unless the discount offered is based on the selling price per book of tickets and the price per single ticket and the discounted price per book of tickets are printed on each ticket.

(11) The value of merchandise to be awarded as a raffle prize shall be the fair market value of the merchandise at the time of submission of an application or verified statement for a raffle license.

(12) Purchasers of raffle tickets need not be present at the raffle drawing to win.

(13) Alcoholic beverages may be sold and consumed in locations where raffle tickets are sold and raffle drawings are conducted.

(14) Alcoholic beverages shall not be awarded as a raffle prize.

(15) No commission, salary, compensation, reward or recompense shall be paid or given to any person for the sale or assisting with the sale of raffle tickets.

(16) Raffle tickets shall be sold by a member of an authorized organization licensed to conduct raffles or authorized to conduct raffles pursuant to section 4601.1(c) of this Title and may also be sold by any person with a blood relationship or affinity with a member of an authorized organization licensed to conduct a raffle.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 4620.22

Amended New York State Register April 13, 2022/Volume XLIV, Issue 15, eff. 4/13/2022