N.D. Admin. Code 99-01.3-05-01.1

Current through Supplement No. 394, October, 2024

Section 99-01.3-05-01.1 - Online raffle ticket sales

1. A licensed organization may sell raffle tickets online over the internet and may accept an electronic payment, including payment by a debit or credit card, for the purchase of a raffle ticket. Any fees related to the use of an electronic payment is a gaming expense to the organization.

2. At least two months before conducting an online raffle ticket sales event, a licensed organization must first complete a form prescribed by the attorney general for approval.

3. An organization that accepts payment by credit card for the purchase of a raffle ticket shall limit an individual's ticket purchases using a credit card to five hundred dollars per day, not to exceed one thousand five hundred dollars per week.

4. Electronic fifty-fifty raffles, raffle boards, calendar raffles, and double roll ticket raffles may not be sold or conducted online over the internet. All tickets must comply with subsections 1 through 10 of section 99-01.3-05-02 and subsections 1 through 13 of section 99-01.3-05-04.

5. The conduct of a raffle is the drawing of a physical ticket to determine the winner. No ticket may be drawn online using a random number generator and a drawing must comply with subsection 9 of section 99-01.3-05-02.

6. If a licensed organization accepts an electronic payment for the purchase of a raffle ticket, the organization shall verify the ticket purchaser is at least eighteen years of age and is physically located in the state of North Dakota.

7. All raffle announcements or advertisements conducted over the internet must include the following restrictions and information on the organization's website:

a. Name of organization;

b. Organization license number;

c. Price of each ticket, including any discounted price;

d. Prize, description of an optional prize selectable by a winning player, or option to convert a merchandise prize to a cash prize that is limited to the lesser of the value of merchandise prize or twenty-five thousand dollars;

e. A statement that a person is or is not required to be present at a drawing to win;

f. Date and time of the drawing;

g. Location and street address of the drawing;

h. If a merchandise prize requires a title transfer involving the department of transportation, a statement that a winning player is or is not liable for sales or use tax;

i. The statement that a person must be at least 18 years of age to buy a ticket;

j. The statement that a person purchasing a ticket must be physically located in the state of North Dakota; and

k. A statement that a purchase of the ticket is not a charitable donation.

8. For tickets sold electronically, the tickets must be detached, scanned, and emailed to the purchaser. The stubs must be kept in a safe location until they are placed in the receptacle for the drawing to determine the winner.

N.D. Admin Code 99-01.3-05-01.1

Adopted by Administrative Rules Supplement 2022-387, January 2023, effective 1/1/2023.

General Authority: NDCC 53-06.1-01.1

Law Implemented: NDCC 53-06.1-10.1