Palos Hills Puts Raffle Regulations in Place

The Palos Hills City Council approved of an ordinance that will allow the city to regulate and monitor the sale of raffle tickets at the council meeting on Thursday, Sept. 16.

With Alderman Joe Marrotta (4th Ward) and Alderman Mary Ann Schultz (5th Ward) absent, the council voted 7-1 to approve the ordinance, which among other restrictions sets a registration fee of $50 to sell raffle tickets.

Alderman Pauline Stratton (2nd Ward) was opposed to the ordinance, claiming that state agencies and the IRS already provide the necessary oversight of raffles and that the city's ordinance was overly strict and not necessary.

Alderman Joan Knox (1st Ward) presented the ordinance and said that while the state has regulations in place regarding raffles, enforcement is left up to individual municipalities. Knox said the ordinance is aimed at protecting residents from fraudulent raffles.

"This something we needed to do to join the towns around us," Knox said. "We are offering a safeguard to our residents and this is something that is deemed by law, from the [the State of Illinois] that we need to follow."

"From what I understand it is not deemed by law … we've existed for over 50 years without it and not had an issue," Stratton said, during discussion.

Knox listed surrounding towns that have such ordinances, including Palos Heights, Chicago Ridge, Orland Park, Tinley Park, Hickory Hills and Oak Lawn. Knox also said she was told by Worth officials that they were considering adopting such an ordinance.

Palos Heights Village Administrator Daniel Nisavic said that Palos Heights has had a raffle ordinance on the books for at least 30 years. However, it simply states that those holding a raffle will abide the State of Illinois' legislation on the issue. Palos Heights imposes no fees, regulations regarding raffle size or other restrictions at the municipal level.

The Raffle Act (230 ILCS 15/) is one of four separate statues that deal with charitable gaming in Illinois. The section on raffle licensing states: The licensing system shall provide for limitations upon (1) the aggregate retail value of all prizes or merchandise awarded by a licensee in a single raffle, (2) the maximum retail value of each prize awarded by a licensee in a single raffle, (3) the maximum price which may be charged for each raffle chance issued or sold and (4) the maximum number of days during which chances may be issued or sold. The licensing system may include a fee for each license in an amount to be determined by the local governing body.

Other regulations under the ordinance passed by Palos Hills include:

• Maximum ticket price of $100
• Maximum individual prize amount of $50,000
• Maximum group prize amount of $200,000

"[The ordinance] will give residents security that someone selling raffle tickets is a legitimate not-for-profit," Knox said.

The council also will also have the authority to wave the fees as it sees fit.