Allows for eligible organizations to use large entertainment venues to conduct raffles in certain municipalities.

A1521

ASSEMBLY, No. 1521

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CLINTON CALABRESE

District 36 (Bergen and Passaic)

SYNOPSIS

���� Allows for eligible organizations to use large
entertainment venues to conduct raffles in certain municipalities.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning the eligibility of certain venues to host
raffles in certain municipalities and amending P.L.2018, c.79.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� Section 1 of P.L.2018,
c.79 (C.5:8-51.6) is amended to read as follows:

���� 1.� a.� It shall be lawful for
an organization eligible to conduct raffles in accordance with section 2 of
P.L.1954, c.5 (C.5:8-51) and registered and licensed with the Legalized Games
of Chance Control Commission to conduct, whether in person at any time or
remotely while the Public Health Emergency declared by the Governor in
Executive Order No. 103 of 2020 is in effect or whenever a Public Health
Emergency, pursuant to the "Emergency Health Powers Act," P.L.2005,
c.222 (C.26:13-1 et seq.), has been declared by the Governor and is in effect,
raffles in a large sporting
or entertainment
venue located in a
municipality where the provisions of the "Raffles Licensing Law,"
P.L.1954, c.5 (C.5:8-50 et seq.), are operative, provided that all other
requirements to conduct raffles are met.� To the extent any conflict exists
between this act, P.L.2018, c.79 (C.5:8-51.6), and the "Raffles Licensing
Law," P.L.1954, c.5 (C.5:8-50 et seq.), then the provisions set forth in
this act shall govern.

���� For the purposes of this
section, the conduct of the raffle remotely using the Internet or other
electronic means shall be deemed to be the conduct of the raffle at the large
sporting
or entertainment
venue, and shall be deemed to take place only
thereat, regardless of any participant's physical location within this State,
provided the large sporting
or entertainment
venue and the specific
event with which the conduct of the raffle is associated are conspicuously and
specifically identified in conjunction with the raffles and remote ticket
sales, personnel of the organization conducting the raffle, whether or not through
a third-party vendor, are located in the venue at the time of the sale and
drawing of any ticket, and the drawing and the announcement of any winning
raffle tickets occurs prior to the end of the event at the large sporting
or
entertainment
venue with which the raffle is associated.

���� An organization conducting a
raffle at a large sporting
or entertainment
venue is subject to the
following requirements:

���� (1)� The organization
conducting the raffle, in conjunction with the large sporting
or
entertainment
venue, shall announce the winner or winners of a raffle on
the date on which the event with which the raffle is associated occurs.� The
organization and the large sporting
or entertainment
venue 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.� For raffles conducted in person, any prize
from a raffle shall be delivered to a claimant verified to have the winning
ticket within 30 days of the event in which the raffle took place; however, if
no claimant verified to have the winning ticket claims the prize and signs all
reasonably necessary documentation within 30 days of the event at which the
raffle took place, the organization conducting the raffle shall hold the
proceeds for a period of one year from the date of the raffle.� If no claimant
with the winning raffle ticket claims the prize and has signed all reasonably
necessary documentation within one year from the date of the drawing, then the
prize shall be forfeited and shall revert back to the organization for its own
authorized use. For any raffles conducted remotely while the Public Health
Emergency declared by the Governor in Executive Order No. 103 of 2020 is in
effect or whenever a Public Health Emergency, pursuant to the "Emergency
Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), has been declared
by the Governor and is in effect, any prize from a raffle shall be delivered at
the large sporting
or entertainment
venue at which the event with which
the raffle was associated occurred to a claimant verified to have the winning
ticket within one year of the event during which the raffle took place.� If no
claimant with the winning raffle ticket claims the prize and has signed all
reasonably necessary documentation within one year from the date of the
drawing, then the prize shall be forfeited and shall revert back to the
organization for its own authorized use.

���� Notwithstanding the foregoing,
any prize which due to its nature must be claimed by a date certain, such as a
ticket to an event scheduled at the large stadium venue, which is not claimed
within 72 hours of the event, then the prize shall be forfeited and shall
revert back to the organization for its own authorized use.

���� (2)� Any daily and annual
limits on the value of prizes contained in existing law or regulation shall not
apply to raffles conducted at large sporting
or entertainment
venues in
accordance with this act, P.L.2018, c.79 (C.5:8-51.6).

���� (3)� On a quarterly basis in
accordance with a schedule established by the commission, an organization
conducting raffles in a large sporting
or entertainment
venue in
accordance with this act, P.L.2018, c.79 (C.5:8-51.6), 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, 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, and 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 and 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)� An organization shall not
conduct a raffle remotely unless the organization has received written approval
from and is operating the raffle in conjunction with the large sporting
or
entertainment
venue and has received written approval from the Legalized
Games of Chance Control Commission of measures it proposes and implements that
ensure, to the greatest extent possible, the fairness, integrity and security
of the remote conduct of the raffle and the security of the method of receipt
of payment for any raffle ticket sale.� The commission may consult with the
Division of Gaming Enforcement in the Department of Law and Public Safety in
its review of the measures the organization proposes and implements.

���� b.��� Notwithstanding section
9 of P.L.1954, c.5 (C.5:8-58), an organization conducting raffles at a large
sporting
or entertainment
venue may conduct raffles on Sunday.� Alcohol
may be served at the sporting
or entertainment
venue during the conduct
of raffles provided that the
[
sporting
]
venue is the
holder of a sporting facility license in accordance with R.S.33:1-12, or other
appropriate license, to serve alcohol at retail for consumption on the premises
by the glass or other open receptacle or in original containers.� An
organization conducting raffles at a large sporting
or entertainment

venue is not required to conduct the drawings openly and in plain view of all
players present.�

���� c.��� Tickets for raffles
conducted in person at a large sporting
or entertainment
venue may be
sold only by in-person transactions within the geographic area of the
[
large sporting
]
venue
electronically or by the issuance of paper tickets, and through devices
operated or kiosks staffed by individuals who are employed by or represent the
organization conducting the raffle. Tickets for raffles conducted remotely
while the Public Health Emergency declared by the Governor in Executive Order
No. 103 of 2020 is in effect or whenever a Public Health Emergency, pursuant to
the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et
seq.), has been declared by the Governor and is in effect, may be sold remotely
to purchasers physically located within this State, using the Internet or other
electronic means, in accordance with this subsection.� Tickets for raffles may
not be purchased electronically by the public other than through transactions
with the personnel of the organization conducting the raffle, whether or not
such transaction is completed through a third-party vendor.� Transactions
between the purchaser and individuals who are employed by or otherwise
represent the organization conducting the raffle may be made by cash, credit
card, or other electronic payment methods, including, but not limited to, the
utilization of Internet or intranet access (Wi-Fi or cellular connectivity).�
The sale and purchase of tickets remotely using the Internet or other
electronic means shall be deemed to take place only at the large sporting
or
entertainment
venue regardless of a purchaser's physical location within
this State, provided the personnel of the organization conducting the raffle,
whether or not through a third-party vendor, is located in the venue at the
time of sale.� An organization conducting a raffle remotely using the Internet
or other electronic means shall establish and adhere to procedures and
controls, including but not limited to the use of geolocation technology,
approved by the commission that ensure, to the greatest extent possible, that
raffle tickets will be sold only to persons physically located in this State.
Tickets for raffles conducted in accordance with this act, P.L.2018, c.79
(C.5:8-51.6), shall not be subject to any ticket price limits set for the
general conduct of raffles. Pre-set bundles of tickets may be sold at a
discount to participants.

���� d.��� Pursuant to P.L.2018,
c.79 (C.5:8-51.6) and notwithstanding the provisions of subsection b. of
section 2 of P.L.1954, c.5 (C.5:8-51), a 50-50 raffle shall have the raffle's
net proceeds divided between the raffle winner and the organization conducting
the raffle as a prize, and the prize may be awarded to a single participant or
may be divided between a pre-determined number of participants.� If the prize
is to be divided between more than one participant, potential participants
shall be made aware of such a division.� No more than one 50-50 raffle as
described in this subsection shall be conducted during a ticketed event.

���� e.��� An organization
conducting a raffle in person at a large sporting
or entertainment
venue
may sell only traditional paper tickets, may use only electronic raffle
systems, or may use a combination of paper and electronic raffle systems.� An
organization conducting a raffle remotely at a large sporting
or
entertainment
venue while the Public Health Emergency declared by the
Governor in Executive Order No. 103 of 2020 is in effect or whenever a Public
Health Emergency, pursuant to the "Emergency Health Powers Act,"
P.L.2005, c.222 (C.26:13-1 et seq.), has been declared by the Governor and is
in effect, may also use the Internet or other electronic means, including
software applications. Drawings for all raffles may be conducted either by a
traditional drawing of duplicate paper tickets or electronically, with the
winner or winners selected by electronic means.� For raffles conducted in paper
form where winners are chosen electronically or in combination of paper and
electronic raffle systems, the paper tickets shall be entered into the
electronic raffle system for record-keeping and for drawing purposes so that
the purchases of paper tickets have an equal chance of winning as the purchases
of electronic rights.

���� f.���� Notwithstanding the
provisions of P.L.1954, c.5 (C.5:8-50 et seq.), or any other law, rule, or
regulation to the contrary, an organization conducting a raffle at a large
sporting
or entertainment
venue shall be permitted to deduct from gross
revenues its reasonable costs and expenses of conducting the raffle.�������

���� g.��� The commission, in
consultation with the Division of Gaming Enforcement in the Department of Law
and Public Safety, shall promulgate, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and
regulations governing the conduct of raffles remotely using the Internet or
other electronic means in accordance with the provisions of this section.

���� h.��� As used in this section:

���� "Electronic raffle
systems" means hardware, software, including software applications,
internet, cellular, or Wi-Fi connected devices and associated devices that
enable raffles to be conducted entirely by electronic means, with rights to
participate sold electronically by individuals who are employed by or otherwise
represent the organization conducting the raffle, that generate a unique
electronic entry to the raffle that is the equivalent of a paper ticket, each
an electronic ticket which may be delivered to the purchaser electronically, at
the point of sale on the premises of the large sporting venue recorded in the
electronic raffle system as eligible entries or rights to participate, and
winners determined by random drawing from all electronic entries or rights to
participate.

���� "Internet or other
electronic means" shall not include electronic raffle systems.

���� "Large sporting
or
entertainment
venue" means a stadium, arena, or similar venue with
minimum seating for 8,000 spectators wherein professional, semi-professional,
or collegiate athletes compete in sports or other athletic games and including
the parking lots adjacent to and serving the patrons of that venue.�
It also
means a shopping plaza, center, mall, or similar venue, consisting of at least
1.5 million square feet with at least 750,000 square feet of the venue being
operated as one or more entertainment facilities, such as a theater, ice rink,
water park, or other place where performances, concerts, exhibits, games, or
contests are held and for which an entry fee is charged.

���� "Net proceeds" means
the gross income from the sale of tickets or rights to participate in a raffle,
less only such actual expenses incurred as are authorized in the "Raffles
Licensing Law," P.L.1954, c.5 (C.5:8-50 et seq.), and by the commission.

(cf: P.L.2020, c.124, s.1)

���� 2.� This act shall take effect
immediately.

STATEMENT

���� This bill would extend the
eligible venues that can host raffles conducted by eligible organizations in
municipalities that allow raffles to include large entertainment venues.� Large
entertainment venue means a shopping plaza, center, mall, or similar venue,
consisting of at least 1.5 million square feet with at least 750,000 square
feet of the venue being operated as one or more entertainment facilities, such
as a theater, ice rink, water park, or other place where performances,
concerts, exhibits, games, or contests are held and for which an entry fee is
charged.

���� Currently, only large sporting
venues are eligible to host raffles for eligible organizations in permitting
municipalities.