Lotteries; Bingo; Raffles; High School Booster’s Club

Subject:

Requested By: Mr. R. Michael Jones Lucas, Rand, Rose, Meyer, Jones & Orcutt, P.A. Counsel for the Wilson County School System

Questions: May the local high school booster’s club legally sponsor a raffle which offers merchandise as a prize or must any prize be in the form of cash?

 

1.  
2. If an exempt organization may offer merchandise as well as cash prizes in the conduct of a raffle, does the five hundred dollars ($500) limitation apply to prizes in the form of merchandise?

    

Conclusion: Yes. An exempt organization may legally sponsor a raffle which offers merchandise as a prize; the prize need not be in the form of cash.

 

1.  
2. No. Only a cash prize is limited in the amount of five hundred dollars ($500).

    

Subsection (g) of G.S. 14-292.1 deals with the limitations on the amount of cash prizes and the value of merchandise prizes to be offered or paid in bingo games and raffles. Subsection (g) reads as follows:

"(g) The maximum prize in cash or merchandise that may be offered or paid for any one game of bingo is five hundred dollars ($500.00). The maximum aggregate amount of prizes, in cash and/or merchandise, that may be offered or paid at any one session of bingo is one thousand five hundred dollars ($1,500). Provided, however, that if an exempt organization holds only one session of bingo during a calendar week, the maximum aggregate amount of prizes, in cash and/or merchandise, that may be offered or paid at any one session is two thousand five hundred dollars ($2,500). The maximum cash prize that may be offered or paid for any one raffle is five hundred dollars ($500.00)." (Emphasis added)

Each of the above limitations on prizes for both raffles and bingo games are very specific. These specific limitations are limitations on the general exemption from North Carolina lottery laws (Article 37 of Chapter 14 of the General Statutes) for exempt organizations to operate and sponsor bingo games and raffles. The clear and definite use of the terms "cash" and "merchandise" in the three sentences in subsection (g) relating to bingo games and the term "cash" in the last sentence of subsection (g) relating to raffles leads to the conclusion that the legislature clearly intended to make no specific limitation in regards to merchandise prizes for raffles.

Therefore, provided the exempt organization meets all other requirements of G.S. 14-292.1, merchandise may be offered or paid as prizes for a raffle and there is no limitation as to the value of such merchandise prizes.

Rufus L. Edmisten Attorney General

Acie L. Ward Assistant Attorney General