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

Based on the provided legal documents, Louisiana law allows for both sweepstakes promotions and raffles, but each has specific requirements that must be met. It is important to obtain a gaming license for raffles and ensure that the prize winner is selected in an entirely random manner. Additionally, applicants for a retail establishment permit must meet suitability standards. There is no specific mention of contests that involve both skill and chance in Louisiana law.

However, promotional contests that involve both skill and chance are allowed in Louisiana as long as certain requirements are met. The Louisiana Revised Statutes § 51.1721 outlines the prerequisites for lawful promotion of promotional contests. The disclosure must be provided to the consumer at the time he is notified of the prize or gift. The disclosure must contain a full description of the exact prize or gift tendered to the consumer, including its cash value, all terms and conditions attached to the prize or gift, a statement that the consumer is given, invited, required, or requested to submit to a sales presentation or promotional program, and a full description of the product, real estate, investment, services, membership, or any other item to be offered for sale, including the price of the least expensive and the most expensive item or parcel.

Additionally, the Louisiana Lottery Corporation states that if a noncash prize is offered, the value of the prize will be determined by the fair market value of any such prize, which will be the amount reported to the state and the IRS for tax purposes. The corporation may pay withholding taxes on behalf of the winner in accordance with federal and state rules. The corporation will not be responsible for any other fees associated with the prize [4.1].

In summary, contests that involve both skill and chance are allowed in Louisiana, but certain requirements must be met. The Louisiana Revised Statutes § 51.1721 outlines the prerequisites for lawful promotion of promotional contests, and the Louisiana Lottery Corporation provides information on determining the value of noncash prizes.

Source(s):
Jurisdiction

Louisiana