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<br />PRIZE RESTRICTIONS:
<br />
<br />A single cash prize cannot exceed $2,500 and total cash prizes for a raffle cannot exceed $4,000 in one day,
<br />
<br />The retail value of a merchandise prize cannot exceed $2,500,
<br />
<br />The total of all cash prizes and retail value of all merchandise prizes for all games cannot exceed $12,000 per year,
<br />
<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 charity local permit are:
<br />Local Pennit
<br />
<br />Charity Local Pennit
<br />One
<br />
<br />Number of events per year
<br />
<br />Limited by prizes
<br />
<br />Must file an information report
<br />
<br />No
<br />
<br />Yes
<br />
<br />May pay employees compensation
<br />
<br />Yes
<br />
<br />No
<br />
<br />Must use chips as wagers
<br />
<br />No
<br />
<br />Yes
<br />
<br />Use of net income
<br />
<br />Unrestricted
<br />
<br />Restricted
<br />
<br />Games allowed
<br />
<br />Bingo
<br />Raffles
<br />Sports pools
<br />
<br />Bingo
<br />Raffles
<br />Sports pools
<br />Poker
<br />Twenty-one
<br />Paddlewheels
<br />
<br />Compared to a "local Permit," an organization with a "charity local permit" may conduct 3 more game types, but is restricted to 1 event per
<br />year, must file an information report with the city or county and Office of Attorney General, and disburse net income to eligible uses, These
<br />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 to the
<br />backside of the "Report on a Charity Local Permit" form for a general list 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 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 or 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 the 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 merchandise prize to a cash prize
<br />that is limited to the lesser of the value of the merchandise prize or two thousand five hundred dollars, However, if there is
<br />insufficient space on a ticket to list each minor prize that has a retail price not exceeding twenty dollars, an organization may
<br />state the total 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, print
<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 to be announced later, date and time of that
<br />announcement. For a calendar raffle, if the drawings are on a same day of the week or month, print the day and time of the
<br />drawing;
<br />8, Location and street address of the drawing;
<br />9, If a merchandise prize 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 prize 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 prize 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 prize is live beef or dairy cattle, horse, bison, sheep or pig, a statement that the winning player may convert the prize to a
<br />cash prize that is limited to the lesser of the market value of the animal or two thousand five hundred dollars,
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