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

To offer contests that involve both skill and chance in Indiana, you must comply with the requirements set forth in IC 24-8-3-4. If an element of chance is involved, each notice must state the odds the participant has of receiving each prize. The statement of the odds must include, for each prize, the total number of prizes to be given away and the total number of notices distributed. The total number of notices must include all notices in which a prize may be given, including notices for other sponsors. If the odds of winning a prize are not accurately stated on the basis of the number of notices, the odds shall be stated in a manner that will not deceive or mislead a participant regarding the participant’s chance of receiving a prize [1.1].

Additionally, if you plan to offer alcoholic beverages as prizes, you must comply with the criteria set forth in IC 7.1-3-6.1-5 and IC 7.1-3-6.1-4. A qualified organization may purchase or receive donations of alcoholic beverages in sealed bottles or cases from certain permittees and may give away as a prize for an allowable event an alcoholic beverage that is purchased by or donated to the qualified organization by a permittee or person described in section 5 of this chapter, in sealed bottles or cases, and provided for consumption off the premises only [2.1][2.2].

If you plan to offer contests that involve both skill and chance, you must comply with the requirements set forth in IC 24-8-1-1. This article applies to a promotion offer made by a person in Indiana or to a person in Indiana. However, this article does not apply to a prize-linked savings program that is offered or conducted by an eligible financial institution under IC 28-1-23.2 or by a credit union or insured depository institution that is conducted in the same manner as a prize-linked savings program under IC 28-1-23.2 [1.2].

Finally, if you plan to offer prizes, vouchers, or certificates, you must give them to the winner at the time they are informed of the prize, if any, they will receive [1.3].

In summary, to offer contests that involve both skill and chance in Indiana, you must comply with the requirements set forth in IC 24-8-3-4, IC 7.1-3-6.1-5, IC 7.1-3-6.1-4, and IC 24-8-1-1. Additionally, you must give prizes, vouchers, or certificates to the winner at the time they are informed of the prize, if any, they will receive [1.1][2.1][1.2][1.3][2.2].

Source(s):
Jurisdiction

Indiana