1     
RAFFLE AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel McCay

5     
House Sponsor: Candice B. Pierucci

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to a lottery.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines charitable raffle; and
13          ▸     provides that a charitable raffle is not prohibited as unlawful gambling.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          76-10-1101, as last amended by Laws of Utah 2019, Chapter 185
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 76-10-1101 is amended to read:
24          76-10-1101. Definitions.
25          As used in this part:
26          (1) "Consumer" means the same as that term is defined in Section 76-10-1230.
27          (2) "Charitable purpose" means the same as that term is defined in Section 13-22-2.

28          (3) "Charitable raffle" means a scheme for the distribution of a good, service, or
29     monetary reward, awarded by chance among individuals who pay money, or provide some
30     other form of value in exchange for a ticket, if:
31          (a) the purchase of the ticket qualifies an individual to win the good, service, or
32     monetary reward; and
33          (b) no less than 90% of the gross revenue generated from the sale of the ticket is used
34     to benefit or provide support for a charitable purpose.
35          [(2)] (4) (a) "Fringe gambling" means any gambling, lottery, fringe gaming device, or
36     video gaming device that is given, conducted, or offered for use or sale by a business in
37     exchange for anything of value or incident to the purchase of another good or service.
38          (b) "Fringe gambling" does not include a promotional activity that is clearly ancillary
39     to the primary activity of a business.
40          [(3)] (5) (a) "Fringe gaming device" means a device that provides the user:
41          (i) a card, token, credit, or product in exchange for anything of value; and
42          (ii) along with the card, token, credit, or product, the opportunity to participate in a
43     contest, game, gaming scheme, or sweepstakes with a potential return of money or something
44     of value that is based on an element of chance and not substantially affected by a person's skill,
45     knowledge, or dexterity.
46          (b) "Fringe gaming device" does not include a device that provides the user a card,
47     token, credit, or product in exchange for only the user's name, birthdate, or contact information.
48          [(4)] (6) (a) "Gambling" means risking anything of value for a return or risking
49     anything of value upon the outcome of a contest, game, gaming scheme, or gaming device
50     when the return or outcome:
51          (i) is based on an element of chance, regardless of the existence of a preview or
52     pre-reveal feature in the device, contest, or game; and
53          (ii) is in accord with an agreement or understanding that someone will receive anything
54     of value in the event of a certain outcome.
55          (b) "Gambling" includes a lottery.
56          (c) "Gambling" does not include:
57          (i) a lawful business transaction; or
58          (ii) playing an amusement device that confers:

59          (A) only an immediate and unrecorded right of replay not exchangeable for value; or
60          (B) as a reward for playing, a toy or novelty with a value of less than $10.
61          [(5)] (7) "Gambling bet" means money, checks, credit, or any other representation of
62     value.
63          [(6)] (8) "Gambling device or record" means anything specifically designed for use in
64     gambling or fringe gambling or used primarily for gambling or fringe gambling.
65          [(7)] (9) "Gambling proceeds" means anything of value used in gambling or fringe
66     gambling.
67          [(8)] (10) "Internet gambling" or "online gambling" means gambling, fringe gambling,
68     or gaming by use of:
69          (a) the Internet; or
70          (b) any mobile electronic device that allows access to data and information.
71          [(9)] (11) "Internet service provider" means a person engaged in the business of
72     providing Internet access service, with the intent of making a profit, to consumers in Utah.
73          [(10)] (12) (a) "Lottery" means any scheme for the disposal or distribution of property
74     by chance among persons who have paid or promised to pay any valuable consideration for the
75     chance of obtaining property, or portion of it, or for any share or any interest in property, upon
76     any agreement, understanding, or expectation that it is to be distributed or disposed of by lot or
77     chance, whether called a lottery, raffle, or gift enterprise, or by whatever name it is known.
78          (b) "Lottery" does not include a charitable raffle.
79          [(11)] (13) "Promotional activity that is clearly ancillary to the primary activity of a
80     business" means that the promotional activity:
81          (a) continues for a limited period of time;
82          (b) is related to a good or service provided by the business or the marketing or
83     advertisement of a good or service provided by the business;
84          (c) does not require a person to purchase a good or service from the business in
85     consideration for participation or an advantage in the promotional activity or any other contest,
86     game, gaming scheme, sweepstakes, or promotional activity; and
87          (d) promotes the good or service being promoted for purchase by the business on terms
88     that are commercially reasonable.
89          [(12)] (14) "Video gaming device" means any device that possesses all of the following

90     characteristics:
91          (a) a video display and computer mechanism for playing a game;
92          (b) the length of play of any single game is not substantially affected by the skill,
93     knowledge, or dexterity of the player;
94          (c) a meter, tracking, or recording mechanism that records or tracks any money, tokens,
95     games, or credits accumulated or remaining;
96          (d) a play option that permits a player to spend or risk varying amounts of money,
97     tokens, or credits during a single game, in which the spending or risking of a greater amount of
98     money, tokens, or credits:
99          (i) does not significantly extend the length of play time of any single game; and
100          (ii) provides for a chance of greater return of credits, games, or money; and
101          (e) an operating mechanism that, in order to function, requires inserting money, tokens,
102     or other valuable consideration other than solely the user's name, birthdate, or contact
103     information.