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

Requirements for Offering Contests Involving Skill and Chance in Kentucky

In Kentucky, contests that involve both skill and chance are considered charitable gaming activities and are subject to licensing requirements ^[1.1]. Charitable organizations conducting charitable gaming in Kentucky must be licensed by the Department of Charitable Gaming.

To qualify for licensure, a charitable organization must possess a tax-exempt status under 26 U.S.C. secs. 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19), or be covered under a group ruling issued by the Internal Revenue Service under authority of those sections. The organization must have been established and continuously operating within the Commonwealth of Kentucky for charitable purposes, other than the conduct of charitable gaming, for a period of three (3) years prior to application for licensure. The organization must have been actively engaged in charitable activities during the three (3) years immediately prior to application for licensure and be able to demonstrate reasonable progress in accomplishing its charitable purposes during this period. The organization must have maintained an office or place of business, other than for the conduct of charitable gaming, for at least one (1) year in the county in which charitable gaming is to be conducted. The organization must comply with all other provisions of the chapter relating to the conduct of charitable gaming ^[1.1].

Therefore, if your contest involves both skill and chance and you are not a charitable organization that meets the above requirements, you cannot offer the contest in Kentucky.

It is important to note that there are specific regulations for different types of charitable gaming activities in Kentucky, such as bingo and raffles ^[1.2]. Additionally, there are laws prohibiting certain types of betting on horse races in Kentucky ^[3.1].

If you have any further questions or concerns, it is recommended that you consult with a licensed attorney in Kentucky.

Source(s):

• [1.1] Licensing of charitable organizations conducting charitable gaming – Exemptions – Qualifications.
• [3.1] Horse races, messenger betting prohibited – Exception.
• [1.2] Restrictions on frequency, prizes, and participants for various types of charitable gaming – Limitations on charitable organizations that conduct charity fundraising events.

Jurisdiction

Kentucky

• Gaming