Bill Text: NJ S3609 | 2024-2025 | Regular Session | Introduced
Bill Title: Allows for licensed organizations to conduct raffles remotely and to advertise such raffles; removes maximum value limitations for prizes; allows remote raffles on Sundays; requires quarterly reporting of raffle results.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-09-19 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S3609 Detail]
Download: New_Jersey-2024-S3609-Introduced.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Allows for licensed organizations to conduct raffles remotely and to advertise such raffles; removes maximum value limitations for prizes; allows remote raffles on Sundays; requires quarterly reporting of raffle results.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the conduct of remote raffles, and amending and supplementing P.L.1954, c.5 (C.5:8-50 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1954, c.5 (C.5:8-51) is amended to read as follows:
2. a. It shall be lawful for the governing body of any municipality, at any time after this act shall become operative within such municipality and except when prohibited by this act, to license bona fide organizations or associations of veterans of any war in which the United States has been engaged, churches or religious congregations and religious organizations, charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs, officially recognized volunteer fire companies, and officially recognized volunteer first aid or rescue squads, to hold and operate the specific kind of game or games of chance commonly known as a raffle or raffles played by drawing for prizes or the allotment of prizes by chance, by the selling of shares or tickets or rights to participate in such game or games and by conducting the game or games accordingly, when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious or public-spirited uses, and in the case of organizations or associations of veterans, and senior citizen associations and clubs to the support of these organizations, and for any such organization or association, church, congregation, society, club, company or squad, when so licensed or without any license when and as hereinafter prescribed, to hold, operate and conduct such game of chance pursuant to this act and such license, in such municipality and to sell shares or tickets or rights to participate in such game or games of chance therein and in any other municipality which shall have adopted this act and under such conditions and regulations for the supervision and conduct thereof as shall be prescribed by rules and regulations duly adopted from time to time by the Legalized Games of Chance Control Commission, hereinafter designated as the control commission, not inconsistent with the provisions of this act, but only when the entire net proceeds thereof are devoted to the uses aforesaid and for any person or persons to participate in and play such games of chance conducted under any such license.
b. The control commission may adopt regulations authorizing licensees to hold events known as:
"armchair races" at which wagers are placed on the outcome of previously-filmed horse races and wagerers do not know the results in advance, when the prize awarded consists of merchandise or raffle tickets only, and not cash; and
"casino nights" at which players use chips or script purchased from the licensee to wager in games of chance known as blackjack, under/over, beat-the-dealer, chuck-a-luck, craps, roulette, bingo or similar games approved by the commission, when the chips or script are redeemable for merchandise or raffle tickets only, and not for cash.
The regulations shall establish the frequency with which these events may be held, the rules of the games, the specific type and value of prizes which may be offered, the qualifications of the individuals conducting the games and other requirements which the commission may deem pertinent.
c. No license shall be required for the holding, operating or conducting of a raffle for a door prize of merchandise of the total retail value of $200.00 or less, or a higher amount as established by regulation of the control commission, for which no extra charge is made at an assemblage, if the proceeds of such assemblage are devoted to the uses described in this section.
d. The control commission, in consultation with the Division of Gaming Enforcement in the Department of Law and Public Safety, shall adopt regulations within 180 days of the effective date of P.L.
, c. (pending before the Legislature as this bill), permitting the conduct, among persons located in this State, of raffles remotely using the Internet in a manner consistent with the provisions of P.L.1954, c.5 (C.5:8-50 et seq.) and to the extent not inconsistent with the provisions of subparagraph B of paragraph 2 of Section VII of Article IV of the New Jersey Constitution. Such technology shall comply with specifications prescribed by the commission and shall be approved by the commission prior to use. For the purpose of conducting raffles pursuant to this subsection, the location of the active member or other person approved by the control commission to hold, operate, or conduct the raffle shall be deemed the licensed premises and the only location at which the raffle is taking place. The conduct of such raffles shall include the selling of shares or tickets or rights to participate in such games.
This subsection shall not be applicable to raffles conducted pursuant to section 1 of P.L.2018, c.79 (C.5:8-51.6).
e. The control commission shall adopt regulations within 180 days of the effective date of P.L. , c. (pending before the Legislature as this bill), authorizing the Statewide advertising of remote raffles conducted pursuant to subsection d. of this section, notwithstanding the provisions of section 14 of P.L.1954, c.5 (C.5:8-63).
(cf: P.L.2015, c.80, s.1)
2. Section 13 of P.L.1954, c.5 (C.5:8-62) is amended to read as follows:
13. [No prize shall be offered and given in cash except as authorized by regulation promulgated by the control commission.
a. The aggregate retail value of all prizes to be offered and given by raffles held, operated and conducted under any license issued under P.L.1954, c.5 (C.5:8-50 et seq.) in any calendar year shall not exceed $500,000.00, but the limit so fixed shall not apply to any raffle with respect to which all tickets, shares or rights to participate are sold only to persons present, the winners determined, and the prizes awarded, on the same occasion or if the prizes are wholly donated.
b. Notwithstanding the provisions of subsection a. of this section, the maximum prize that may be offered and awarded in a golf hole-in-one contest shall not exceed $1,000,000. Any prizes above $25,000 shall be offered and awarded only when the entire amount is insured by a company licensed to conduct business in this State and approved by the control commission. The prize shall be paid as an annuity with a payout over a maximum period of 20 years. Ancillary prizes awarded shall have an aggregate retail value no greater than that provided by subsection a. of this section and shall also be subject to the provisions of subsection c. of this section.
c. No prize having a retail value greater than that prescribed by regulation promulgated by the control commission shall be awarded in any raffle conducted by a drawing, or for each spin of the wheel or other allotment by chance.]
There shall be no limitation on the value of prizes awarded at a raffle conducted pursuant to P.L.1954, c.5 (C.5:8-50 et seq.).
(cf: P.L.1996, c.36, s.1)
3. (New section) a. Any licensed organization lawfully conducting raffles remotely pursuant to subsection d. of section 2 of P.L.1954, c.5 (C.5:8-51) may:
(1) conduct multiple, consecutive, or simultaneous raffles at their discretion;
(2) conduct remote raffles on Sunday, notwithstanding the provisions of section 9 of P.L.1954, c.5 (C.5:8-58); and
(3) advertise such remote raffles across the State, consistent with the rules and regulations adopted by the Legalized Games of Chance Control Commission.
b. The winner or winners of any remote raffle conducted pursuant to subsection d. of section 2 of P.L.1954, c.5 (C.5:8-51) shall be determined, and prizes awarded, within 365 days of the first calendar day on which the right to participate in such raffle was offered to members of the public, as shall be set forth in the terms of the raffle and which shall be clearly and conspicuously displayed to prospective participants. The licensee shall post each winning raffle ticket number on their respective websites, if such websites have been established, on the same date as the announcement, which number shall be posted for one year or until each winner claims the prize and submits any required documentation.
Notwithstanding the foregoing, any prize which due to its nature must be claimed by a date certain, such as a ticket to an event, which is not claimed within 72 hours of the event, shall be forfeited and shall revert back to the organization for its own authorized use.
c. On a quarterly basis in accordance with a schedule established by the control commission, an organization conducting remote raffles pursuant to subsection d. of section 2 of P.L.1954, c.5 (C.5:8-51), shall furnish to the control commission a duly verified statement showing: the amount of the gross receipts derived from each raffle held, operated, or conducted in the preceding quarter, which shall include receipts from the sale of shares, tickets, or rights in any manner connected with participation in the raffle or the right to participate therein; each item of expense incurred or paid, and each item of expenditure made or to be made, and the name and address of each person to whom each such item has been or is to be paid, with a detailed description of the merchandise purchased or the services rendered therefor; the net proceeds derived from each such raffle; the uses to which such net proceeds have been or are to be applied; and a list of prizes offered or given, with the respective values thereof. It shall be the duty of each organization to maintain and keep such books and records as may be necessary to substantiate the particulars of each such report.
4. This act shall take effect immediately.
STATEMENT
This bill directs the Legalized Games of Chance Control Commission, in consultation with the Division of Gaming Enforcement, to adopt regulations allowing for the conduct of remote raffles within 180 days of the bill becoming law.
The bill also directs the commission to adopt rules governing the advertising of remote raffles across the State.
The bill removes all limitations on the value of prizes which may be awarded in any raffle and allows remote raffles to be conducted on Sundays, which is currently prohibited under law.
The bill establishes a 365 day time-period for winners to be drawn and prizes awarded for remote raffles.
Finally, the bill requires that organizations conducting remote raffles report quarterly to the commission on the results of any such raffles.
