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Can I offer contests that involve both skill and chance in Georgia? What are the requirements?

Requirements for Offering Contests that Involve Both Skill and Chance in Georgia

Yes, it is possible to offer contests that involve both skill and chance in Georgia, as long as they conform with the qualifications of a lawful promotion specified in paragraph (16) of subsection (b) of Code Section 10-1-393 [1.1]. However, all promotions or promotional contests involving an element of chance in the distribution of prizes, gifts, awards, or other items which otherwise meet the definition of a “lottery” in this article shall be included within the definition of the term “lottery” for purposes of this article, unless specifically exempted by some other statute or law [1.1].

To operate such contests, the organization must be a nonprofit, tax-exempt organization, such as churches, schools, civic organizations, or related support groups; nonprofit organizations qualified under Section 501(c) of the Internal Revenue Code, as amended; or bona fide nonprofit organizations approved by the sheriff, which are properly licensed pursuant to Code Section 16-12-22.1 [1.2].

The organization must obtain a license from the sheriff of the county in which the nonprofit tax-exempt organization is located, and the license will expire at 12:00 Midnight on December 31 following the granting of the license. Renewal applications for each calendar year shall be filed with the sheriff prior to January 1 of each year and shall be on a form prescribed by the sheriff [1.2].

The application for a license and each application for renewal of a license must contain the following information:

  • The name and home address of the applicant and, if the applicant is a corporation, association, or other similar legal entity, the names and home addresses of each of the officers of the organization as well as the names and addresses of the directors, or other persons similarly situated, of the organization;
  • The names and home addresses of each of the persons who will be operating, advertising, or promoting the raffle;
  • The names and home addresses of any persons, organizations, or other legal entities that will act as surety for the applicant or to which the applicant is financially indebted or to which any financial obligation is owed by the applicant;
  • A determination letter from the Internal Revenue Service certifying that the applicant is an organization exempt under federal tax law;
  • A statement affirming that the applicant is exempt under the income tax laws of this state under Code Section 48-7-25;
  • The location at which the applicant will conduct the raffles and, if the premises on which the raffles are to be conducted is to be leased, a copy of the lease or rental agreement; and
  • A statement showing the convictions, if any, for criminal offenses other than minor traffic offenses of each of the persons listed in subparagraphs (A), (B), and (C) of this paragraph [1.2].

The sheriff shall have the specific authority to suspend or revoke any license for any violation of this Code section. Any licensee accused of violating any provision of this Code section shall be entitled, unless waived, to a hearing on the matter of the alleged violation conducted in accordance with Chapter 13 of Title 50, the “Georgia Administrative Procedure Act.” [1.2].

Additionally, it is important to note that the Georgia Lottery Corporation is not involved in the regulation of contests that involve both skill and chance in Georgia [2.1].

Therefore, to offer contests that involve both skill and chance in Georgia, the organization must be a nonprofit, tax-exempt organization, obtain a license from the sheriff, and comply with the requirements outlined in Code Section 16-12-22.1 [1.2].

Source(s):
Jurisdiction

Georgia, Georgia