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PRIZE RESTRICTIONS: <br /> <br />A single cash prize or retail value of a merchandise prize cannot exceed $1,000. <br /> <br />The total cash prizes for a raffle cannot exceed $3,000 in one day. <br /> <br />The total of ail cash prizes and retail value of all merchandise prizes for all games cannot exceed $6,000 in a fiscal year July 1 <br />through June 30. <br /> <br />If the value of the planned cash and merchandise prizes exceeds $6,000, the organization must reduce the prizes to this limit <br />or apply for a state license with the Office of Attorney General. <br /> <br />LOCAL PERMIT AND CHARITY LOCAL PERMIT: <br /> <br />An organization may apply for a local permit or charity local permit. The major differences are: <br /> <br /> Local Permit Charity Local Permit <br /> <br />Number of events per year <br /> <br />Must file an information report <br /> <br />May pay employees compensation <br /> <br />Must use chips as wagers <br /> <br />Use of net income <br /> <br />Games allowed <br /> <br />Limited by prizes One <br /> No Yes <br /> Yes No <br /> No Yes <br /> Unrestricted Restricted <br /> <br /> Bingo Bingo <br /> Raffles Raffles <br /> Sports pools Sports pools <br /> Poker <br /> Twenty-one <br /> Paddlewheels <br /> <br />Compared to a ~local permit," an organization with a ~chadty local permit" may conduct 3 more game types, but is restricted <br />to 1 event per year, must file an information report with the city or county and Office of Attorney General, and must disburse <br />net income to eligible uses. These uses are described by North Dakota Century Code § 53-06.1-11.1(2) and North Dakota <br />Administrative Code § 99-01.3-14-02. Refer to the backside of the ~Report on a Charity Local Permit' form for a general list <br />of eligible uses. <br /> <br />For a charity local permit, one method to ensure that the total of all cash prizes and retail value of ail merchandise prizes do <br />not exceed $6,000 is to charge each player a standard amount at the start of the event for a certain number or value of chips. <br />If a player loses ail of the player's chips, the player may re-buy chips. The player would play games and, at the end of the <br />event, the organization would auction merchandise prizes to the players. The player who bid the highest number or value of <br />chips for a prize would win that prize. For those players who have chips but did not successfully bid on a prize, the <br />organization may redeem the chips for a predetermined cash value per chip. For this method, the value of players' chips <br />redeemed for cash is not a prize. <br /> <br /> <br />