Topic:
PERMITS; GAMES OF CHANCE;
Location:
BAZAARS AND RAFFLES;
Scope:
Connecticut laws/regulations;

OLR Research Report


The Connecticut General Assembly

OFFICE OF LEGISLATIVE RESEARCH




December 12, 1994 94-R-1054

TO:

FROM: Veronica Rose, Research Analyst

RE: Raffles

You asked several questions about raffles. Your specific questions and answers follow.

WHO QUALIFIES FOR A RAFFLE PERMIT UNDER STATE LAW?

The following are eligible for permits to promote and conduct raffles: veterans', religious, civic, fraternal, educational, and charitable organizations; volunteer fire companies; political parties; and town committees.

Raffles may also be promoted and conducted in a town if they are sponsored by the municipality acting through a designated centennial, bicentennial, or any other centennial celebration committee.

To qualify for a permit, organizations, but not centennial committees, must have been organized in good faith and actively functioning as a nonprofit organization for at least one year prior to applying (CGS 7-172). It is illegal to conduct raffles without a permit.

Any town in which a raffle is being conducted must have adopted the Bazaar and Raffles Act.

ARE THERE DIFFERENT TYPES OF PERMITS?

Yes. The Division of Special Revenue issues several types of permits with different prize limits. Each permit allows one raffle in a specified period. Permit fees range from $5 for a Class 4 permit to $100 for a Class 6 or 7 permit.

Table 1

Classes of Raffle Permits Issued by the

Division of Special Revenue

Maximum No. of

No. of Aggregate Permits

Class of Period of Permit Raffles Value of Allowed

Permit Validity Fee Authorized Prizes Annually

Class 1 3 months $50 1 $15,000 1

Class 2 2 months $20 1 $2,000 3

Class 4 1 month $5 1 $100 1

Class 5 6 months $80 1 $50,000 1

Class 6 9 months $100 1 $100,000 1

Class 7 15 months $100 1 $50,000 —

(The division issues a Class 3 permit for bazaars.)

Source: CGS 7-170 to 7-185

Raffle prizes must be: merchandise; tangible personal property; or a nonrefundable ticket, coupon, or gift certificate for merchandise, a tour, services, tangible personal property or state lottery tickets. The law expressly prohibits cash prizes, alcoholic beverages, or prizes that are redeemable for cash. But it allows an organized church, volunteer fire company, or veterans' organization to redeem prizes for cash.

WHAT IS THE PERMIT APPLICATION PROCEDURE?

The statutes establish a detailed process for permit application. The applicant must complete an official application with the following information: (1) the name and address of the organization and facts relating to its incorporation or organization; (2) the names, titles, and addresses of the organization's officers; (3) the date and place where the raffle will be held; (4) anticipated raffle sales and expenses; (5) a description of the raffle prizes, their retail value, and their donors; (6) the specific purposes of the raffle's net proceeds; and (7) any other information that the division requires (CGS 7-173).

Organizations must apply to their municipality's chief of police or first selectman who forwards the applications to the Division of Special Revenue's executive director. Class 7 permit applicants must apply directly to the executive director. The address and telephone number of the division are:

Division of Special Revenue

Charitable Gaming

85 Alumni Road

Newington, CT 06111

(203) 667-5025

WHAT ARE THE REPORTING REQUIREMENTS?

Within one month after a raffle, the permittee must submit a verified report on the raffle to the police chief of the municipality where the raffle was held. The Class 7 permittee must submit his report directly to the executive director. Reports must contain: (1) gross receipts; (2) an itemized list of expenses and payments and the name and address of each person who received, or will receive, payments; (3) net profit and its use or intended use; and (4) a list and price of each prize with a retail value of $50 or more (purchased or donated) and the name and address of each prize winner. The permittee must keep any records that will substantiate the report for at least one year from the report's date (CGS 7-182).

WHAT ARE THE PENALTIES FOR VIOLATING THE PERMIT REQUIREMENTS?

The executive director may suspend or revoke permits for actual or anticipated violations. Violations include providing false statements in applications and reports and operating without a license. For false statements in an application form or permit report, he may suspend or revoke a permit and order a civil penalty of up to $200 after due notice and opportunity for a hearing. He may not reissue a permit for three years after the date of the violation that resulted in the revocation (CGS 7-181).

VR:pp