Cash Prize Restrictions and Limitations Information

              The purpose of this bulletin is to clarify
the restrictions and limitations on cash
prizes awarded from charitable games.
The specifi c criteria used to determine
what constitutes a cash prize are
defi ned.
What are the restrictions and
limitations of cash prizes?
All charitable games approved through
the Charitable Games Act must be
played using chips, scrip, or play
money. Cash may never be used to
wager on any of the games. Upon
completion of play, a participant may
redeem his chips, scrip, or play money
in exchange for prizes. A participant
may not exchange his chips, scrip,
or play money for a cash prize(s)
exceeding $250.00. There is no limit on
the amount of noncash prizes.
What is considered a cash
prize?
A cash prize is money, or an equivalent
of money, that has a measure of value
and is widely accepted as means of
payment for goods or services.
Do gift cards and gift certifi cates
qualify as a cash prize?
Some gift cards, such as Visa Gift cards,
have wide-scale acceptance and would
be considered a cash prize under the
Charitable Games Act, and thus subject
to the $250.00 limitation. Gift cards
and gift certifi cates accepted only at a
single place of business, or at a chain of
businesses, have limited acceptance and
are not considered a cash prize unless
the holder has the option to redeem
the card or certifi cate for cash at the
business.
Note: For further details regarding cash
prizes, refer to the Charitable Games
Regulations, Section 435.160.
Questions?
If you have questions or need more
information, please call or write us. Our
telephone numbers and address are
printed on the left side of this bulletin.
Cash Prize Restrictions and
Limitations Information
To:
All charitable games licensees and applicants
For information
or forms...
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfi eld, IL 62794-9044
Visit our web site at:
tax.illinois.gov
Call our 24-hour
Forms Order Line at:
1 800 356-6302
This bulletin is written to
inform you of recent changes;
it does not replace statutes,
rules and regulations, or court
decisions.
Illinois Department of Revenue
Informational Bulletin
Printed by authority of the State of Illinois
895 copies - 6/07 - P.O. Number 2071020
FY 2007-07
June 2007
Brian Hamer
Director of Revenue