[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.]
As used in this chapter, the following terms
shall have the meanings indicated:
A voluntary organization composed of individuals and businesses
who have joined together to advance the commercial, financial, industrial
and civic interests of the community.
[Added 7-21-2020 by Ord.
No. 7640]
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.
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.
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.
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.
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.
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.
A style of raffle which allows the holder of a winning raffle
ticket the opportunity to select or have selected on their behalf
a card from a deck of up to 54 playing cards, one of which represents
the winning jackpot card. The selection of the playing card by the
winning raffle ticket holder shall be in accordance with rules established
by the organization licensed pursuant to this chapter but must be
based upon an element of chance by an act or set of acts on the part
of the persons conducting or connected with the raffle. The playing
card selected by or on behalf of the holder of a winning raffle ticket
may also be designated as a winning prize valued at less than the
jackpot for such progressive raffle in accordance with the rules established
by the licensed organization. For illustrative purposes only, games
commonly known as "queen of hearts raffle" would be classified as
a progressive raffle.
[Added 7-21-2020 by Ord.
No. 7640]
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:
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;
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.
Any church, congregation, society or organization founded
for the purpose of religious worship.
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, business, fraternal, educational, veterans' or other bona fide
not-for-profit 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 during that entire five-year period 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 or to any law enforcement
agencies and statewide associations that represent law enforcement
officials.
[Amended 7-21-2020 by Ord. No. 7640]
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 at which the winning chances will be determined.
[Amended 7-21-2020 by Ord. No. 7640]
D.
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 and whether
raffle chances will be sold via the internet.
[Amended 7-21-2020 by Ord. No. 7640]
E.
A sworn statement attesting to the not-for-profit
character of the respective licensee organization signed by the presiding
officer and secretary of that organization.
[Amended 7-21-2020 by Ord. No. 7640]
F.
A sworn statement that applicant has never been convicted
of a felony that would impair the applicant's ability to engage in
the licensed activity 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.
[Amended 7-21-2020 by Ord. No. 7640]
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]
[Amended 7-21-2020 by Ord. No. 7640]
No such license shall be issued to:
A.
A person who is not of good moral character and reputation in the
City.
B.
A person who has been convicted of a felony under any federal or
state law which would impair the person's ability to engage in the
licensed activity.
C.
A person who has been convicted of pandering or other crime or misdemeanor
opposed to decency and morality.
D.
A person or organization whose license issued under this chapter
has been revoked for cause.
E.
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.
F.
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.
G.
Any person who is or has been a professional gambler or gambling
promoter.
H.
A person or organization whose place of business is conducted by
a manager or agent, unless said manager or agent possesses the same
qualifications required of the licensee.
I.
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.
J.
A person or organization who does not own the premises upon which
the raffle drawing will be conducted or does not have a lease or rental
agreement thereon for the full period for which the raffle drawing
will be conducted.
K.
A person who is not an owner, director, officer, employee or member
of the licensee.
L.
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.
M.
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.
N.
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.
O.
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 director, officer, employee or member
of the sponsoring organization may participate in the management or
operation of the raffle. No person may receive any remuneration or
profit for managing or participating in the management of the raffle.
Sponsoring organizations may contract with third parties who, acting
at the direction of and under the supervision of the sponsoring organization,
provide bona fide services to the sponsoring organization in connection
with the operation of a raffle and may pay reasonable compensation
for such services. Such services include the following: a) advertising,
marketing and promotion; b) legal; c) procurement of goods, prizes,
wares and merchandise for the purpose of operating the raffle; d)
rent, if the premises upon which the raffle will be held is rented;
e) accounting, auditing and bookkeeping; f) website hosting; g) mailing
and delivery; h) banking and payment processing; and i) other services
relating to the operation of the raffle.
[Amended 7-21-2020 by Ord. No. 7640]
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 provided that the rent is
not determined as a percentage of receipts or profits from the raffle.
[Amended 10-20-2020 by Ord. No. 7657]
E.
Raffle chances may be sold and winning chances may
be determined only at those locations specified on the license.
[Amended 10-20-2020 by Ord. No. 7657]
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, except as otherwise provided in this
chapter.
[Amended 7-21-2020 by Ord. No. 7640]
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.
Progressive raffles shall be considered a single raffle for purposes
of licensing pursuant to this chapter, notwithstanding the fact that
such progressive raffles may provide for up to 54 scheduled drawings.
Progressive raffles shall be subject to the following limitations:
[Added 7-21-2020 by Ord.
No. 7640[1]]
(1)
All applications for progressive raffles shall include a copy of
the rules which shall be applicable to the conduct of such progressive
raffles.
(2)
In the event that the jackpot has not been awarded by the end of
the 51st week following the first drawing, one additional drawing
event will take place during the 52nd week at which time winning raffle
chances will be selected until the card representing the jackpot is
selected.
(3)
The first drawing of a winning raffle chance must take place within
60 days of the date of issuance of the license issued pursuant to
this chapter.
(4)
Drawings of winning raffle chances shall take place at the location
identified in the license.
(5)
No signage advertising or otherwise making known the availability
of the raffle within the licensed establishment may be visible from
the exterior of the building at which the raffle drawing will take
place or the exterior of the building occupied by the licensed organization.
(6)
No organization shall be issued more than one license to conduct
a progressive raffle during any twelve-month period.
(7)
In the event that the jackpot for a progressive raffle is awarded
prior to the conclusion of the 52nd week following the first drawing,
a licensee may conduct additional, consecutive progressive raffles
under its current license provided that: 1) the initial progressive
raffle and all subsequent consecutive progressive raffles conducted
pursuant to the license be complete by not later than the conclusion
of the 52nd week following the first drawing of the initial progressive
raffle; and 2) the aggregate value of all prizes to be awarded in
connection with the initial progressive raffle and all subsequent
consecutive progressive raffles does not exceed $250,000.
[Added 11-17-2020 by Ord.
No. 7668[2]]
[2]
Editor's Note: This ordinance also redesignated former Subsection
D(7) and (8) as Subsection D(8) and (9), respectively.
(8)
Except as otherwise provided in this chapter, no location within
the City may be utilized for drawings related to more than one progressive
raffle within any twelve-month period.
[Amended 11-17-2020 by Ord. No. 7668]
(9)
Any licensee receiving a license pursuant to this chapter shall be
responsible for ensuring that traffic within the property upon which
a progressive raffle drawing is held shall be safely conducted and
in such a manner so that it will not unreasonably interfere with the
normal flow of traffic upon the public street from which traffic enters
to and exits from such property, as reasonably determined by the City's
Police Chief or the Chief's designee. To the extent that the normal
flow of traffic is adversely impacted by drawings conducted upon such
property, the licensee shall reimburse the City for any additional
costs incurred by the City to assist in addressing such traffic flow.
E.
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.
F.
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.
[Amended 7-21-2020 by Ord. No. 7640; 6-15-2021 by Ord. No. 7719]
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 affirmative vote of the members
of the licensed organization.
A.
Each organization licensed to conduct raffles and
chances 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 or, if the organization does not
have members, to its governing board, 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.
[Amended 7-21-2020 by Ord. No. 7640]
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.
