City of Crystal Lake, IL
McHenry County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Crystal Lake 1-19-1993 (Art. IV, Ch. I, Section P, of the 1993 Code). Amendments noted where applicable.]
GENERAL REFERENCES
General penalty — See Ch. 1, Art. II.
As used in this chapter, the following terms shall have the meanings indicated:
CHARITABLE
An organization or institution organized and operated to benefit an indefinite number of the public. The services rendered to those eligible for benefits must also confer some benefit on the public.
EDUCATIONAL
An organization or institution organized and operated to provide systematic instruction in useful branches of learning by methods common to schools and institutions of learning which compare favorably in their scope and intensity with the course of study presented in tax-supported schools.
FRATERNAL
An organization of persons having a common interest, the primary interest of which is to both promote the welfare of its members and to provide assistance to the general public in such a way as to lessen the burdens of government by caring for those that otherwise would be cared for by the government.
LABOR
An organization composed of workers organized with the objective of betterment of the conditions of those engaged in such pursuit and the development of a higher degree of efficiency in their respective occupations.
NET PROCEEDS
The gross receipts from the conduct of raffles, less reasonable sums expended for prizes, local license fees and other reasonable operating expenses incurred as a result of operating a raffle.
NONPROFIT
An organization or institution organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation.
RAFFLE
A form of lottery, as defined in Chapter 38, Section 28-2(b), Illinois Compiled Statutes, of the "Criminal Code of 1961"[1] conducted by an organization licensed under this chapter in which:
A. 
The player pays or agrees to pay something of value for a chance, represented and differentiated by a number or by a combination of numbers or by some other medium, one or more of which chances is to be designated the winning chance;
B. 
The winning chance is to be determined through a drawing or by some other method based on an element of chance by an act or set of acts on the part of persons conducting or connected with the lottery, except that the winning chance shall not be determined by the outcome of a publicly exhibited sporting contest.
RELIGIOUS
Any church, congregation, society or organization founded for the purpose of religious worship.
VETERANS
An organization or association comprised of members which are substantially veterans and spouses, widows or widowers of veterans, the primary purpose of which is to promote the welfare of its membership and to provide assistance to the general public in such a way as to confer a public benefit.
[1]
Editor's Note: See 720 ILCS 5/28-2.
A. 
It shall be unlawful for any person, firm or corporation to conduct raffles or chances within the City of Crystal Lake unless the person, firm or corporation has a valid license issued in accordance with the provisions of this chapter.
B. 
Licenses shall be issued only to bona fide religious, charitable, labor, fraternal, educational or veteran organizations that operate without profit to their members and which have been in existence continuously for a period of five years immediately before making application for a license and which have been during that entire five-year period a bona fide membership engaged in carrying out their objects, or to a nonprofit fund-raising organization that the licensing authority determines is organized for the sole purpose of providing financial assistance to an identified individual or group of individuals suffering extreme financial hardship as the result of an illness, disability, accident or disaster.
Applications for such licenses shall be made to the City Manager or his/her designated representative, signed by the applicant or its duly authorized representatives and verified by oath or affidavit, and shall contain the following information and statements:
A. 
Names, ages and addresses of the applicant in the case of an individual or in such other case by the duly authorized representatives of the applicant, the date of incorporation of any corporation, the date of formation of any club, the objects for which a club or corporation was formed, the names and addresses of the officers and directors of any club, the name and address of the local representative of any church.
B. 
The character of business of the applicant and in the case of a corporation the objects for which it was formed.
C. 
The location and description of the premises or place of business upon which the raffle will be held.
D. 
The area or areas within the City in which raffle chances will be sold or issued, the time period during which raffle chances will be sold or issued, the time of determination of winning chances and the method by which the winning chance will be determined.
E. 
A statement attesting to the not-for-profit character of the respective licensee organization signed by the presiding officer and secretary of that organization.
F. 
A statement that applicant has never been convicted of a felony and is not disqualified to receive a license by reason of any matter or thing contained in this chapter, other ordinances of this City, laws of the State of Illinois or of the United States of America.
G. 
Whether a previous license by any state or subdivision thereof or by the federal government has been revoked and the reasons therefor.
H. 
A statement that the applicant will not violate any of the laws of the State of Illinois or of the United States or any ordinances of this City in the conduct of the raffle.
I. 
A statement that the applicant will not allow gambling devices or gambling on the premises where the drawing will be held, except for the use or operation of such video gaming terminals for which a video gaming terminal permit has been issued and which is lawfully operated within a licensed establishment, in accordance with the provisions of § 268-3 of this Code.
[Amended 4-5-2016 by Ord. No. 7209]
No such license shall be issued to:
A. 
A person who is not a resident of the City.
B. 
A person who is not of good character and reputation in the City.
C. 
A person who is not a citizen of the United States.
D. 
A person who has been convicted of a felony under any federal or state law.
E. 
A person who has been convicted of pandering or other crime or misdemeanor opposed to decency and morality.
F. 
A person whose license issued under this chapter has been revoked for cause.
G. 
A person who, at the time of application for renewal of any license issued hereunder would not be eligible for such license upon a first application.
H. 
A corporation, if any officer, manager or director thereof, or any stockholder or stockholders owning in the aggregate, more than 5% of the stock of such corporation, would not be eligible to receive a license hereunder for any reason other than residence within the City.
I. 
A corporation whose registered agent is not a resident of the City of Crystal Lake.
J. 
Any person who is or has been a professional gambler or gambling promoter.
K. 
A person whose place of business is conducted by a manager or agent, unless said manager or agent possesses the same qualifications required of the licensee.
L. 
A person who has been convicted of a violation of any federal or state law concerning the manufacture, possession or sale of alcoholic liquor, subsequent to the passage of this chapter or shall have forfeited bond to appear in court to answer charges for any such violation.
M. 
A person who does not own the premises for which a license is sought, or does not have a lease thereon for the full period for which the license is to be issued.
N. 
Any law enforcing public official, any City Manager, any Mayor, Alderman, or member of the City Council or commission, or any President or member of a county board, and no such official shall be interested in any way, either directly or indirectly, in the manufacture for sale, sale or distribution of alcoholic liquor.
O. 
Any person, association, or corporation not eligible for a state retail liquor dealer's license.
P. 
A person who is not a beneficiary owner of the business to be operated by the licensee.
Q. 
A person who has been convicted of a gambling offense as proscribed by any part of Subsection (a)(3) through (a)(10) of Section 28-1, or as proscribed by Section 28-3 of the Criminal Code of 1961, approved July 28, 1961, as heretofore or hereafter amended as contained in Illinois Compiled Statutes 1961, Chapter 38, Section 28-1, 28-3[1] or as proscribed by a statute replaced by any of the aforesaid statutory provisions.
[1]
Editor's Note: See 720 ILCS 5/28-1 and 720 ILCS 5/28-3.
R. 
A person to whom a federal gaming device stamp or a federal wagering stamp has been issued by the federal government for the current tax period.
S. 
A corporation, if any officer, manager or director thereof, or any stockholder owning in the aggregate more than 20% of the stock of such corporation has been issued a federal gaming device stamp or a federal wagering stamp for the current tax period.
T. 
Any premises for which a federal gaming device stamp or a federal wagering stamp has been issued by the federal Government for the current tax period.
The conducting of raffles is subject to the following restrictions:
A. 
The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game.
B. 
No person except a bona fide member of the sponsoring organization may participate in the management or operation of the raffle.
C. 
No person may receive any remuneration or profit for participating in the management or operation of the raffle.
D. 
A licensee may rent a premises on which to determine the winning chance or chances in a raffle only from an organization which is also licensed under this chapter.
E. 
Raffle chances may be sold or issued only within the area specified on the license and winning chances may be determined only at those locations specified on the license.
F. 
No person under the age of 18 years may participate in the conducting of raffles or chances. A person under the age of 18 years may be within the area where winning chances are being determined only when accompanied by his/her parents or guardian.
A. 
A license authorizes the licensee to conduct raffles as defined in this chapter. Each such license is valid for one raffle or for a specified number of raffles to be conducted during a specified period not to exceed one year.
B. 
All raffle tickets which are sold off the premises upon which the raffle is to be held shall contain the license number issued by the City.
C. 
The license shall contain the following information:
(1) 
The aggregate retail value of all prizes or merchandise awarded by the licensee in a single raffle. In no event shall the aggregate retail value of all prizes or merchandise exceed the sum of $250,000 in a single raffle,
[Amended 7-17-2001 by Ord. No. 5436]
(2) 
The maximum retail value of each prize awarded by the licensee in a single raffle. In no event shall the aggregate retail value of any prize or merchandise exceed the sum of $250,000 in a single raffle.
[Amended 7-17-2001 by Ord. No. 5436]
(3) 
The maximum price which may be charged for each raffle chance issued or sold by the licensee, provided that the licensee shall submit to the City Manager or his/her designated representative the aggregate retail value of all of the prizes or merchandise to be awarded, the total number of chances which may be issued or sold and the projected net proceeds as defined by this chapter which shall be the basis in determining the maximum price which may be charged for each raffle chance. Upon receipt of all of the foregoing information, the City Manager or his/her designated representative shall review and approve the maximum price for each raffle chance, or in the event the City Manager or his/her designated representative does not approve the price-per-raffle chance, he/she shall communicate the reason for such denial to the person applying for the license within 10 days of receipt of application for the proposed license.
(4) 
The maximum number of days during which chances may be issued or sold.
D. 
Except as is provided in Subsection C(3), the City Manager or his/her designated representative shall have 30 days in which to approve or disapprove the license applied for. In the event the City Manager or his/her designated representative shall fail to take action within the thirty-day period, in the event they would disapprove the license applied for, or in the event they would fail to approve the maximum price charged for each raffle chance pursuant to Subsection C(3), the applicant shall have the right upon written receipt to appeal that decision to the Mayor and City Council at the next regularly scheduled Council meeting. The Mayor and City Council shall have the right to review the application and approve or deny issuance of the license applied for.
E. 
The City Manager or his/her designated representative may revoke any licenses issued by the City if it is determined that the licensee has violated any provision of this chapter.
Operation and conduct of raffles shall be under the supervision of a single raffles manager designated by the person or organization making application for a license. The manager shall give a fidelity bond in an amount not less than the anticipated gross receipts for each raffle. The bond shall be in favor of the organization and conditioned upon his/her honesty in the performance of duties. The bond shall also provide that notice be given in writing to the City of Crystal Lake not less than 30 days prior to its cancellation. The City Manager or his/her designated representative is authorized to waive the requirement for a bond by including a waiver provision in the license issued, provided that the license containing such waiver provision shall be granted only by unanimous vote of the members of the licensed organization.
A. 
Each organization licensed to conduct raffles and changes shall keep records of its gross receipts, expenses and net proceeds for each single gathering or occasion at which winning chances are determined. All deductions from gross receipts for each single gathering or occasion shall be documented with receipts or other records indicating the amount, a description of the purchased item or service or other reason for the deduction, and the recipient. The distribution of net proceeds shall be itemized as to payee, purpose, amount and date of payment.
B. 
Gross receipts from the operation of raffles programs shall be segregated from other revenues of the organization, including bingo gross receipts, if bingo games are also conducted by the same nonprofit organization pursuant to a license therefor issued by the Department of Revenue of the State of Illinois, and placed in a separate account. Each organization shall have separate records of its raffles. The person who accounts for gross receipts, expenses and net proceeds from the operation of raffles shall not be the same person who accounts for other revenues of the organization.
C. 
Each organization licensed to conduct raffles shall report monthly to its membership, and to the City of Crystal Lake, its gross receipts, expenses and net proceeds from raffles, and the distribution of net proceeds itemized as required in this section.
D. 
Records required by this section shall be preserved for three years, and organizations shall make available their records relating to operation of raffles for public inspection at reasonable times and places.