4897062 Lottery and Charitable Games Control Board, DC - Notice of Final Rulemaking - These rules finalize the 50/50 Raffles rules for Charitable Foundations affiliated with Collegiate or Professional Sports Teams

THE DISTRICT OF COLUMBIA

LOTTERY AND CHARITABLE GAMES CONTROL BOARD

 

NOTICE OF FINAL RULEMAKING

 

The Executive Director of the District of Columbia Lottery and Charitable Games Control Board, pursuant to the authority set forth in the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (Pub. L. No. 109-356, § 201, 120 Stat. 2019; D.C. Official Code §§ 1-204.24a(c)(6) (2012 Repl.)); Section 4 of the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Official Code §§ 3-1306(a), 3-1322 and 3-1324 (2012 Repl.)); District of Columbia Financial Responsibility and Management Assistance Authority Order issued September 21, 1996; and Office of the Chief Financial Officer Financial Management Control Order No. 96-22, issued November 18, 1996, hereby gives notice of his intent to amend Chapters 15 (Raffles) and 99 (Definitions) of Title 30 of the DCMR, “Lottery and Charitable Games.”

 

Proposed regulations were published in a Notice of Proposed Rulemaking in the D.C. Register on November 22, 2013, at 60 DCR 16067. In response to public comments received, the proposed rulemaking was revised to expand its application to charitable foundations established by or affiliated with collegiate sports teams and to include the option for electronic raffles systems.

 

A Notice of Second Proposed Rulemaking was necessary to implement 50/50 Raffles conducted by charitable foundations established by or affiliated with professional sports teams. These rules were published in the March 7, 2014 D.C. Register at 61 DCR 1965.

 

A Notice of Third Proposed Rulemaking was created in response to public comments received, to allow ticket sellers to be paid an hourly wage; for the removal of the aggregate spending value on total prizes awarded per licensed organization; for an increase in the maximum number of events per season; and to clarify that the fee for electronic raffle sales units is a one-time fee. This Notice of Third Proposed Rulemaking which was published on April 25, 2014 at 61 DCR 4202, supersedes the Notice of Second Proposed Rulemaking.

 

The comment period was shortened to be no less than fifteen (15) days after the April 25, 2014 publication date of the Notice of Third Proposed Rules in the D.C. Register. This reduced period of review had been adopted for good cause, as required by D.C. Official Code § 2-505(a).  The proposed rule provides a benefit to the public allowing District Charitable Organizations to raise funds for charities using raffles. The public has been afforded adequate time to respond to these rules, and the public will not be harmed by the reduced comment period.

 

In response to public comments received, Section 1509.2(w) was further clarified to refer to draw prizes, as opposed to the amount of gross receipts collected per draw. Other than this technical clarification, no substantive changes were made to the final rules.

 

The Executive Director adopted these rules as final on May 12, 2014, and they shall become effective upon publication of this notice in the D.C. Register. 

 

AMEND CHAPTER 15 “RAFFLES” OF TITLE 30, “LOTTERY AND CHARITABLE GAMES”, OF THE DCMR AS FOLLOWS:

 

Add Section 1509 to read as follows:

 

1509                50/50 RAFFLES CONDUCTED BY CHARITABLE FOUNDATIONS AFFILIATED WITH COLLEGIATE OR PROFESSIONAL SPORTS TEAMS

 

1509.1             The Agency may issue a 50/50 raffle license to a recognized and qualified charitable organization affiliated with a collegiate or professional sports team.

 

1509.2             Operation of 50/50 Raffles.

 

(a)                The Agency shall require a non-refundable application fee for a 50/50 raffle license.

 

(b)               The Agency may issue 50/50 raffle licenses for a single sporting event or game, or a period lasting the affiliated sports teams’ season (“license period”).

 

(c)                A 50/50 raffle drawing may only take place during a single game or sporting event (“licensed event”). 

 

(d)               The licensed organization shall complete all forms and provide all information to the Agency required under Chapter 12 of this title.

 

(e)                50/50 raffles are subject to all of the applicable requirements established by Chapters 12, 13, 15, and 17 of this title except where specifically indicated in this chapter.

 

(f)                50/50 raffles maybe conducted with two-part “admission-style” tickets traditionally used for 50/50 raffles or electronically using computer software and related equipment to sell tickets, account for sales, and facilitate the drawing of tickets to determine winners.

 

(g)               A person may purchase one or more 50/50 raffle tickets at a licensed event.

 

(h)               Each 50/50 raffle ticket purchased shall represent one entry in the drawing for a winner.  The equipment used to conduct 50/50 raffles and the method of play shall ensure that each and every ticket to participate shall have an equal opportunity to be drawn as a winner.

 

(i)                 The licensed organization’s game rules shall state when the 50/50 raffle drawing shall take place. 

 

(j)                 The 50/50 raffle drawing shall take place during the licensed event where the corresponding 50/50 raffle tickets are sold and must conclude before the end of the corresponding sporting event or game.  If for some unforeseen reason (weather delay, power outage, emergency, or other reasonably unforeseeable event), the licensed event is not completed on the day the licensed event’s 50/50 raffle tickets are sold, the licensed event may be rescheduled and completed at another eligible sporting event or game provided no other licensed event is taking place at that event.  

 

(k)               The licensed organization’s game rules shall determine the number of winners that will be chosen randomly from the 50/50 raffle tickets sold.

 

(l)                 The total prize amount of a 50/50 raffle drawing shall be 50% of the gross proceeds collected from the sale of the 50/50 raffle tickets.

 

(m)             The remaining 50% of the gross proceeds collected from the sale of the 50/50 raffle tickets shall be dispersed for the lawful purpose stated in the license application.

 

(n)               No more than one (1) 50/50 raffle drawing shall be conducted during a licensed event. 

 

(o)               50/50 raffle tickets shall have consecutive numbers, and shall list the licensed organization’s contact name and phone number so that the purchaser may check on winning numbers.

 

(p)               All 50/50 raffle tickets shall be sold at a uniform price.  The licensed organization may not change 50/50 raffle ticket prices during the licensed event. 

 

(q)               Winners need not be present at the 50/50 raffle draw.  Each licensed organization shall post the winning raffle numbers on the affiliated team’s website and the licensed organization’s website.

 

(r)                 The licensed organization’s 50/50 raffle rules, and each individual 50/50 raffle ticket, shall provide the name and phone number of the individual in charge of the licensed event.  Each 50/50 raffle ticket shall state where and how a 50/50 raffle ticket holder may check for the winning number after the licensed event.

 

(s)                Only United States currency shall be accepted by a licensed organization as payment for any raffle ticket.

 

(t)                 Persons selling 50/50 raffle tickets may be paid only via an hourly wage. Such persons shall not be provided additional compensation, incentives or bonuses based on amount of tickets sold. This section shall not apply to the system service provider.

 

(u)               50/50 raffle tickets may not be sold in advance of the licensed event.

 

(v)               50/50 raffle tickets may only be sold on the premises of the licensed event.  The premises of the licensed event includes only areas where an event ticket is required for admission to view the event, and does not include event parking areas, sidewalks, streets, restaurants, shops, entertainment venues, or bars near or adjacent to the premises of the licensed event.

 

(w)             No single 50/50 raffle drawing shall exceed the sum of $150,000 in prizes.

 

(x)               Subsections 1202.2 (l) and (n), Subsections 1204.14, 1502.1(c), (d) and (h), Subsection 1502.2, Subsection 1502.3, Subsection 1502.4, Subsection 1502.5, Subsection 1503.4, Subsection 1504.1, and Subsection 1504.2 of this title shall not apply to 50/50 raffles.

 

1509.3             Classes of 50/50 Raffle Licenses and Fees.

 

(a)                Class A single licensed event raffle license:               $500.00.

 

(b)               Class B season raffle license:             

 

            $500.00 multiplied by the number of licensed events.  There is a maximum of (51) licensed events per Class B season raffle license period and a limit of one (1) raffle draw per licensed event.

 

(c)                Non-refundable application fee:                                 $50.00.

                                                           

(d)               The Agency shall require a one-time fee of $200.00 fee from the licensed organization for each individual electronic raffle sales unit and electronic random number generator used to conduct an electronic 50/50 raffle.  This $200.00 per electronic device fee shall be in addition to any licensing costs and does not include individual electronic raffle sales units that must be replaced due to changes in Agency regulations.

 

1509.4                                      Electronic 50/50 Raffles.

 

(a)                An electronic raffle system may be used to sell and conduct a 50/50 Raffle.  The electronic raffle system may include stationary and portable raffle sales unit(s) and an electronic random number generator(s).

 

(b)               Electronic equipment used in a 50/50 raffle must be in compliance with § 1509.6 of this chapter.

 

(c)                Electronic 50/50 raffle tickets may only be sold by a licensed organization at a licensed event.

 

(d)               A licensed organization may use portable or wireless raffle sales unit(s) to sell tickets. 

 

(e)                A licensed organization may use an electronic random number generator(s) to select the winning entries.

 

1509.5             The following information shall be printed on electronic 50/50 raffle tickets:

 

(a)                The name of licensed organization;

 

(b)               The license identification number of the licensed organization;

 

(c)                The location, date and time of the corresponding 50/50 raffle drawing;

 

(d)               The consecutively printed serial number of the 50/50 raffle ticket;

 

(e)                The price of the 50/50 raffle ticket;

 

(f)                The list of prizes offered;

 

(g)               The statement: “Ticket holders need not be present to win,” and the contact information, including names, phone number, and electronic mail address, of the individual from the licensed organization responsible for prize disbursements; and

 

(h)               Each 50/50 raffle ticket stub shall reflect the consecutively printed serial number of the 50/50 raffle ticket.

 

1509.6             Electronic 50/50 Raffle Equipment Standards.

 

(a)                The electronic raffle system used must be certified by Gaming Laboratories International, Inc., or any other certifying entity recognized and approved by the Agency.  

 

(b)               The Agency is not responsible for any costs of certification or compliance with these regulations.

 

(c)                Persons shall not sell, rent, or distribute electronic 50/50 raffle equipment or supplies to any person or organization other than a licensed organization for use during licensed events. 

 

(d)               Licensed organizations shall not sell, rent, distribute, or share electronic 50/50 raffle equipment.

 

1509.7             Electronic Accounting and Reporting.

 

(a)                The Agency may audit the licensed organizations raffle records at any time.

 

(b)               The licensed organization shall follow the system reporting requirements for Gaming Laboratories International, Inc., electronic raffle systems.

 

(c)                For each electronic raffle conducted, the licensed organization shall generate and mail reports to the Agency containing the following information:

 

(1)        Date and time of licensed event;

 

(2)        Licensed organization running the event;

 

(3)        Sales information (sales totals, refunds, etc.);

 

(4)        Prize value awarded to participant;

 

(5)        Prize distribution (total raffle sales vs. prize value awarded to participant);

 

(6)        Refund totals by licensed event;

 

(7)        Raffle Draw numbers-in-play count; and

 

(8)        Winning number(s) drawn (including draw order, call time, and claim status).

 

(d)               The licensed organization shall provide the following reports for any raffle upon Agency request:

 

(1)        Exception Report - A report that includes system exception information, including but not limited to, changes to system parameters, corrections, overrides, and voids;

 

(2)        Raffle Bearer Ticket Report - A report that includes a list of all raffle bearer tickets sold including all associated  raffle draw numbers, selling price and raffle sales unit identifiers;

 

(3)        Sales by Raffle Sales Unit - A report that includes a breakdown of each raffle sales unit’s total sales (including raffle draw numbers sold ) and any voided and misprinted tickets;

 

(4)        Voided Draw Number Report - A report which includes a list of all draw numbers that have been voided including corresponding validations numbers;

 

(5)        Raffle Sales Unit Event Log - A report listing all events recorded for each raffle sales unit, including the date and time and brief text description of the event and /or identifying code;

 

(6)        Raffle Sales Unit Corruption Log - A report that lists all raffle sales unit’s unable to be reconciled to the system, including the raffle sales unit identifier, raffle sales unit operator, and the money collected; and

 

(8)        Any other report listed in the Electronic Accounting and Reporting Section of the Gaming Laboratories International, Inc., Electronic Raffle Systems Requirements but not listed above.

 

(e)                Each one of the reports listed above is referenced by and shall have the same definition contained in the Electronic Accounting and Reporting Section of the Gaming Laboratories International, Inc., Electronic Raffle Systems Requirements.

 

 

AMEND CHAPTER 99, “DEFINITIONS” AS FOLLOWS:

 

Amend Subsection 9900.1 by inserting the following:

 

50/50 Raffle - A raffle where 50% of the gross proceeds of ticket sales are awarded to one or numerous persons buying tickets, and the remaining 50% of the gross proceeds are dispersed for the lawful purpose stated in the raffle application.

 

Electronic Raffle System - The computer software and related equipment used by 50/50 raffle licensees to sell tickets, account for sales, and facilitate the drawing of tickets to determine the winner(s).

 

Raffle Draw Numbers - Numbers provided to the 50/50 raffle ticket purchaser that may be selected as the winning number(s) for the 50/50 raffle draw.

 

Raffle Bearer Ticket - The electronic paper ticket that contains one or more draw numbers purchased.

 

Raffle Sales Unit - A portable or wireless device, a remote hardwired connected device, or a standalone cashier station that is used as a point of sale for electronic 50/50 raffle tickets.

 

Electronic Raffle System(s) Requirements– The standard(s) produced by a certifying entity for the purpose of providing independent test reports and certifications indicating the state of compliance of suppliers’ devices and systems within the certification requirements.

 

Gaming Laboratories International, Inc. - A gaming industry certification laboratory headquartered in Lakewood, New Jersey, USA.

 

Sporting Event - An event that requires charged admission so individuals may view two or more persons participating in athletic competition for the entertainment of others and for the purpose of athletic achievement.

 

Sports Teams’ Season - An annual time period that includes the preseason, regular season, and post season, from the playoffs through the finals or championship, of any sports team.