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PRIZE RESTRICTIONS: <br />A single cash prize cannot exceed $1,000 and total cash prizes for a raffle cannot exceed $3,000 in one day. <br /> <br />The retail value of a merchandise prize cannot exceed $2,500. <br />The total of all cash prizes and retail value of all merchandise prizes for all games cannot exceed $12,000 in a fiscal year July 1 <br />through June 30. <br />If the value of the planned cash and merchandise prizes exceeds $12,000, the organization must reduce the prizes to this limit or <br />apply for a state license with the Office of Attorney General. <br /> <br />LOCAL PERMIT AND CHARITY LOCAL PERMIT: <br /> <br />The major differences between a local permit and chadty local permit are: <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 /> Local Permit Charity Local Permit <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 /> Paddtewheels <br /> <br />Compared to a Ulocal pern~i~," an organization with a "charity local permit" may conduct 3 more game types, but is restricted to I event per <br />year, must file an information report with the city or county and Office of Attorney General, and must disburse net income to eligible uses. <br />These uses are described by North Dakota Century Code § 53-06.1-11.1(2) and North Dakota Administrative Code § 99-01.3-14-02. Refer <br />to the backside of the UReport on a Charity Local Permit" form for a general list of eligible uses. <br />For a charity local permit, one method to ensure that the total of all cash pdzes and retail value of all merchandise prizes do not exceed <br />$12,000 is to charge each player a standard amount at the start of the event for a certain number or value of chips. If a player loses all of the <br />player's chips, the player may re-buy chips. The player would play games and, at the end of the event, the organization would auction <br />merchandise prizes to the players. The player who bid the highest number o~ value of chips for a prize would win that prize. For those <br />players who have chips but did not successfully bid on a prize, the organization may redeem the chips for a predetermined cash value per <br />chip. For this method, the value of players' chips redeemed for cash is not a prize. <br /> <br />INFORMATION REQUIRED TO BE PREPRINTED ON A STANDARD RAFFLE TICKET: <br /> <br />1. Name of organization; <br />2. Ticket number, <br />3. Price of the ticket, including any discounted price; <br />4. Prize, description of an optional prize selectable by a winning player, or option to convert a memhandise prize to a cash prize <br /> that is limited to the lesser of the value of the merchandise prize or one thousand dollars. However, if there is insufficient <br /> space on a ticket to list each minor prize that has a retail price not exceeding fifteen dollars, an organization may state the total <br /> number of minor prizes and their total retail price; <br />5. For a licensed organization, print "office of attorney general" and license number. For an organization that has a permit, pdnt <br /> the authorizing city or county and permit number;, <br />6. A statement that a person is not required to be present at a drawing to win; <br />7. Date and time of the drawing or drawings and, if the winning player is announced later, date and time of that announcement. <br /> For a calendar raffle, if the drawings are on a same day of the week or month, print the day and time of the drawing; <br />8. Location and street address of the drawing; <br />9. If a merchandise pdze requires a title transfer involving the department of transportation, a statement that a winning player is <br /> or is not liable for sales or use tax; <br /> 10. If a purchase of a ticket or winning pdze is restricted to a person of minimum age, a statement that a person must be at least <br /> ~ "years of age to buy a ticket, or win a prize; <br /> 11. A statement that a purchase of the ticket is not a charitable donation; <br /> 12. If a secondary pdze is an unguaranteed cash or merchandise prize, a statement that the prize is not guaranteed to be won and <br /> odds of winning the prize based on numbers of chances; and <br /> 13. If a pdze is live beef or dairy cattle, bison, sheep or pig, a statement that the winning player may convert the prize to a cash <br /> prize that is limited to the lesser of the value of the animal or one thousand dollars. <br /> <br /> <br />