This spring, the Maine Legislature enacted legislation, LD 1837, that updates the rules governing raffles offered by charitable organizations.  The new law removes all references to “savings promotional raffle” and raises the amount an organization can raffle without licensing or registration with Maine’s Gambling Control Unit to $2,500.

With the elimination of the language relating to savings promotion raffles, credit unions and other financial institutions are no longer required by law to cap savings promotion raffles at $1,000, provide market rates to account holders participating in the raffle, provide disclosures about the raffle, or limit raffles to twice a year.

It is important for credit unions to examine Maine’s new law pertaining to raffles before offering savings promotion raffles in the future.  While the new Maine raffle law is less burdensome to follow, credit unions should make sure they have a clear understanding of state rules regulating games of chance.

The relevant text of the new law is listed below:

  • LD 1837 (2018 Public law Chapter 365) Sec. 1. 17 MRSA §1837-A, sub-§§2 to 4, as enacted by PL 2017, c. 284, Pt. KKKKK, §25, are amended to read: 2. Raffle with a prize of $2,500 or less. A person or organization is not required to register with the Gambling Control Unit to conduct a raffle in which the total value of the prize offered to the holder of the winning chance does not exceed $2,500. If the raffle is conducted in a manner in which there are multiple winning chances, the total value of all prizes offered may not exceed a value of $2,500.