Section 99-01.3-05-03 - Prize restrictions and requirements1. No prize may be real estate, ticket for entry into another raffle, or live animal except for beef or dairy cattle, horse, bison, sheep, or pig. A prize must be an item that may be legally owned and possessed and has a value or a right to a free service. A winning player may not be required to first pay for or buy something to receive a prize. Cash or merchandise prizes may be awarded. A cash prize may be based on a percentage of gross proceeds. However, a single cash prize cannot exceed twenty-five thousand dollars and the total cash prizes cannot exceed twenty-five thousand dollars during a day. The maximum cash prize limits of this section do not apply to a public-spirited organization that supports amateur collegiate athletics. The public-spirited organization's primary purpose must include support of collegiate athletics.2. On not more than two occasions, per year, a licensed organization may, at the request of a winning player, exchange a merchandise prize valued at not more than twenty-five thousand dollars for a cash prize. Merchandise prizes with a value in excess of twenty-five thousand dollars may not be exchanged for cash. An organization may advertise that cash may be requested as an alternative to the merchandise prize being offered.3. An organization shall own, have a contract to acquire, or be able to obtain a merchandise prize before offering a merchandise prize in a drawing. However, an organization does not need to register or title an automobile or similar item.4. Besides a primary prize that is awarded, an organization may offer an additional unguaranteed cash prize limited to one thousand dollars or merchandise prize provided: a. A ticket must describe the prize;b. The prize is predetermined and may be limited to a winning player of one of the other prizes;c. A player is not required to pay an additional amount, forfeit a prize, or be present to participate;d. Unless an organization owns a prize, an award of the prize must be insured; ande. Unless the prize is limited to a winning player of one of the other prizes, a drawing must be conducted from all tickets sold.5. If an organization has not been able to recover the cost of the prize, it may cancel a raffle with approval from the attorney general and refund the gross proceeds.6. A prize winner shall be drawn or determined on the date and at the location indicated on a ticket unless a different date or location is requested in writing and approved by the attorney general before the date of the drawing. If a different drawing date or location is approved, an organization shall notify the purchasers of the tickets of the change by contacting each purchaser or by making a public announcement. The attorney general may, for good cause, change the date or location for a drawing.7. Within seven days of a raffle, an organization shall notify the winning player verbally or, if the value of the prize exceeds five hundred dollars, in writing, of the prize and arrange the pickup or delivery of the prize. If a prize remains unclaimed by a winning player for thirty days following the date of the written notification and an organization has made a good-faith effort to contact the winner to redeem the prize, the organization may retain the prize, have a second prize drawing, or award it in another raffle or game.8. An organization may award a bonus prize based on a separate drawing of previously drawn winning tickets.N.D. Admin Code 99-01.3-05-03
Effective May 1, 1998; amended effective July 1, 2000; July 1, 2002; July 1, 2004; October 1, 2006; July 1, 2010.Amended by Administrative Rules Supplement 2016-360, April 2016, effective 4/1/2016.Amended by Administrative Rules Supplement 369, July 2018, effective 7/1/2018.General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 36-21.1-09, 53-06.1-01.1, 53-06.1-10.1