ARM 23.16.2611. AUTHORITY TO OFFER 50/50 RAFFLES, 50/50 RAFFLE PROCESSING SYSTEM RESTRICTIONS

(1) Only a nonprofit organization, a college, a university, a public school district, or a nonpublic school may sponsor and offer a 50/50 raffle. (2) All 50/50 raffles are subject to the following restrictions: (a) the sponsor is responsible for compliance with Montana statutes and regulations, including ARM 23.16.2602, as well as all other applicable state and federal statutes and regulations; (b) credit gambling is prohibited and 50/50 raffle sales may not be made by credit card; (c) the drawing must occur and the winner must be identified on the date advertised to the public and established in the sponsor's rules; and (d) proceeds from the raffle must be divided between the winner and the sponsor and may not include a percentage of ticket sales for administrative expenses or other fees payable to any third party. (3) A nonprofit organization may purchase or contract for a 50/50 raffle electronic processing system subject to these restrictions: (a) the nonprofit organization must register with the department for exemption from the general internet gambling prohibition as provided in ARM 23.16.2602; (b) the sponsor may only use an approved 50/50 raffle electronic processing system; (c) 50/50 raffle tickets may be sold only on the day of the drawing; and (d) the department may conduct on-site inspections and tests of the 50/50 raffle electronic processing system to assure proper functioning and compliance.