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Can I offer contests that involve a single game or event in Texas? What are the requirements?

Here are the requirements for offering contests that involve a single game or event in Texas:

Requirements for Single-Event Contests

Texas law does not have specific provisions for single-event contests. However, contests that involve a single game or event are generally considered to be a type of sweepstakes or matched contest. Therefore, the requirements for sweepstakes and matched contests apply to single-event contests.

Sweepstakes Requirements

Tex. Bus. & Com. Section 622.105 prohibits the use of scratch-off devices or any other game piece that suggests an element of chance or luck to convey information about the sweepstakes or an offer to enter the sweepstakes.

Matched Contest Requirements

Tex. Bus. & Com. Section 621.103 requires that the identity and number of major prizes to be awarded in a matched contest must be determined before the contest begins and disclosed on each entry form distributed. Each major prize identified on an entry form for a matched contest shall be awarded. The contest period for a matched contest may not exceed 12 calendar months.

Tex. Bus. & Com. Section 621.104 requires that a person who uses a matched contest shall clearly and conspicuously disclose in writing in the offer all requirements, restrictions, qualifications, and other conditions that must be satisfied for a person to enter the contest. This includes any deadline by which the person must visit the location or attend the sales presentation to qualify to receive a prize and the approximate duration of the sales presentation. The offer must also disclose the odds of winning each prize offered, expressed as a ratio in Arabic numerals, the geographical area or states in which the contest will be conducted, the beginning and ending dates of the contest period, the identity and address of each person responsible for awarding prizes, that all unclaimed prizes will be awarded by a drawing and the date of the drawing, and all other rules and terms of the contest.

Required Records

Tex. Bus. & Com. Section 621.202 requires that for each contest other than a drawing, the offeror shall maintain until the second anniversary of the date the last prize was awarded records of the identity and address of each person who is responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program, records that show that the winning numbers have been deposited in the mail or otherwise made available to recipients in accordance with the odds statement provided under Section 621.104(a), a copy of each contest solicitation, and records adequate to determine the name and address of each contestant, the approximate date each contestant was sent the solicitation used in the contest, the number of major prizes awarded, the date each major prize was awarded, the name, brand, type, model number, and manufacturer of each prize offered, the method of computing the retail value of each prize, the method of selecting major prize winners, the name and address of each major prize winner, and the facts on which each representation or disclosure made in connection with the contest was based and from which the validity of the representation or disclosure can be determined.

Exceptions

Tex. Bus. & Com. Section 622.054 exempts charitable raffles regulated by Chapter 2002, Occupations Code from the requirements of this chapter. Tex. Bus. & Com. Section 622.055 exempts sweepstakes regulated by the Alcoholic Beverage Code from the requirements of this chapter. Tex. Bus. & Com. Section 622.058 exempts drawings for the opportunity to participate in a hunting, fishing, or other recreational event conducted by the Parks and Wildlife Department from the requirements of this chapter.

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Source(s):
Jurisdiction

Texas