In Michigan, if a company gives something of value to have a chance to win a prize, it`s considered a raffle. Skill-based contests are not sweepstakes. The state has two types of raffles: A: Yes, the bingo law also provides licenses for millionaire parties and bingo. Millionaire parties can include several or one card game (such as Texas Hold `Em) as well as other types of gambling. These are also regulated by the State of Michigan`s Bingo Act. These activities have licensing requirements very similar to those of sweepstakes. A: In general, U-M strongly opposes the use of prize draws as institutional fundraisers. There are a few exceptions, provided that the Vice President of Development (VPD) recommends to evPCFO that the draw continue, that the VPD supervise or arrange for the supervision of all activities in the prize draw, and that the EVPCFO approves the exception. The VPD will consider recommending an exception if (1) a high-level donor or U-M official is personally involved in fundraising, (2) the Unit Development Office supports the draw as a U-M fundraising event, (3) the item(s) to be drawn are of significant value and are expected to bring in significant funds, and (4) there are no negative factors, which would tarnish U-M`s reputation by sponsoring the raffle. Other unique factors would be considered, but only on a case-by-case basis. Raffle tickets are considered games of chance, just like lottery tickets and bingo games, and as such, the laws that regulate sweepstakes are administered by state and county governments in the United States. The laws that govern sweepstakes also vary greatly from state to state (and from county to county in some states), making it difficult to provide the exact regulations for your area.
Organizations typically use two types of tickets – pre-printed and roll-shaped or theater seats – that can be purchased at office supply stores or online. A company can only sell role tickets at the location and time of the license. Non-profit organizations qualified by the Charitable Gaming Division are eligible to hold fundraising sweepstakes with an approved raffle license application. Each prize draw requires a license, but an entity can only use one license for many draw dates in one place. There is no limit to the number of licenses a qualified organization can hold per year. Silent auctions are not games of chance and therefore do not require a license. For general information about sweepstakes, rules, and forms, see State of Michigan, Michigan Lottery, Charitable Gaming Division in www.michigan.gov/cg/. Please note that the typical processing time for all competition applications is 8 weeks. These include MSU approval/signature and Michigan state approvals. Failure to obtain an appropriate license prior to a raffle event compromises MSU`s status as a qualified organization in the Charitable Gaming Division. Any MSU college/department/unit/organization that does not comply with this draw policy may be permanently banned for all future draw requests.
Fundraising with raffle tickets is legal and effective for most types of nonprofits. However, care must be taken to ensure that the Contest is conducted in accordance with all applicable contest laws and regulations. A: With a few exceptions, the Bingo Act requires a license for sweepstakes, millionaire parties, bingo and other games such as “Charity Games” and “Digital Games”. Very strict requirements must be met before the state issues a license. A licence applicant must represent a “qualified organization”. Strict financial records are required. The “Chief Agent of the Organization” must sign the application and ultimately certify the accounting of all funds, resources and reports related to the game. The various reporting obligations are not trivial and require the undersigned person to personally certify the accuracy of the information, prepare and process various tax withholding documents and file returns with the State. The OGC recommends that you carefully review the requirements before making a decision on whether to continue a licensed gaming event. A: Yes, but there are several requirements that must be met.
Research protocols must meet both U-M`s institutional requirements for human research and government regulatory requirements for sweepstakes. For surveys where prizes awarded over one (1) day are worth $100 or less, government regulations allow for simplified procedures. All other situations are much more complicated. Institutional review panels have integrated government regulatory requirements into their processes for managing oversight of people research. If you have any questions, please contact the U-M Institutional Review Committee. At U-M, raffle questions arise in three types of contexts. These include research incentives, fundraising and promotion of activities. Fundraising sweepstakes must comply with the Bingo Act. Michigan State University colleges/departments/units/organizations may hold sweepstakes in accordance with the procedures and requirements of this policy. However, other charitable gambling games that require a government-issued license, such as bingo and millionaire parties, are not allowed.