Section 316-35-503 - CONDUCT OF THE GAME503.01 A qualifying nonprofit organization must accept something of value from a participant for an opportunity to participate in the lottery or raffle.503.02 A qualifying nonprofit organization conducting a small lottery or raffle shall sell tickets which are sequentially numbered as a chance to participate in the lottery or raffle. No other form or method of participation is permitted.503.02A Ticket sales shall not exceed the gross proceeds limitations set forth in Regulation 35-500.02.503.03 Winners shall be determined by either (a) a random drawing of the tickets or ticket stubs; or (b) by a race of inanimate buoyant objects as provided in section 9-511.01 of the Nebraska Small Lottery and Raffle Act. No other form or method of determining a winner is permitted.503.04 All tickets or ticket stubs for a ticket drawing shall be placed into a receptacle designed so that each ticket or ticket stub shall have an equal opportunity of being drawn.503.05 If a participant's presence is required in order to win a prize, participants must be made aware of this condition upon purchasing a ticket.503.06 A qualifying nonprofit organization conducting a small lottery or raffle in which real or personal property prizes are to be awarded shall have paid for in full or otherwise become the owner without lien or interest of others of all the real or personal property awarded as prizes prior to the date on which the winner(s) will be determined. 503.06A Prizes awarded in a small raffle must be at least 80 percent merchandise prizes, to be valued at their fair market value which means the price that one would normally pay for an item in an arm's length transaction with a retail business. A merchandise prize may be any item which can be legally owned or possessed which is not directly or indirectly redeemable for cash by the qualifying nonprofit organization or any agent thereof. For purposes of this regulation, real estate and savings bonds are not considered to be merchandise prizes. Merchant gift certificates are to be considered as a merchandise prize and shall be assessed at their face value. 503.06A(1) For purposes of this regulation, to determine if the prizes meet the 80 percent merchandise requirement in order for the activity to qualify as a raffle, the total fair market value of the merchandise prizes compared to the total value of all prizes to be awarded shall be the determining factor, and not simply by the number of merchandise prizes. 503.06B Prizes awarded in a small lottery may include cash, merchandise, or anything of value which may be legally owned and possessed. If prizes other than cash are offered in a small lottery, the fair market value of all merchandise prizes must be less than 80 percent of the total value of all prizes awarded. For purposes of this regulation, real estate and savings bonds shall be considered cash prizes and shall be assessed at their purchase price value.503.06C Pickle cards shall not be awarded as a small lottery or raffle prize. 316 Neb. Admin. Code, 35, § 503