Is it legal to give away prizes, food and hold drawings to increase my attendance at a broker open house?
This is a tough question and I can’t even get DFPR and legal counsel to agreed! The issue is whether attendance at a broker open house constitutes a “licensed activity”. If it does, then technically all compensation must flow through the sponsoring broker. My advice: stick to giving out food. If you have a cash drawing, the safe way is to make the check payable to the sponsoring broker. For certain, there could also be a problem with drawings under Illinois gaming laws. The risk is probably minimal as long as the prize is small.
