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

Based on the information provided in the documents, it is possible to offer contests that involve both skill and chance in New Jersey, but there are specific requirements that must be met.

Requirements for Contests of Skill and Chance

According to NJST 5:19-1, participation in contests of skill in which a participant pays an entry fee for the opportunity to win a monetary prize or something else of value shall not be considered a game of chance, shall not constitute unlawful gambling under the laws of this State, and shall not subject the participant or the sponsor of the contest of skill, or any officer, employee, or agent of the sponsor, to any civil or criminal liability under the laws of this State that prohibit gambling. However, a “contest of skill” shall not include any contest, game, pool, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance. A “contest of skill” shall also not include any casino game, any sports wager or sports wagering scheme, or any Internet gaming of any kind.

Therefore, in order to offer a contest that involves both skill and chance, the outcome cannot depend primarily on chance. The winner or winners must be selected solely on the quality of an entry in the contest as determined by a panel of judges using uniform criteria to assess the quality of entries. Additionally, the contest must be approved as a “contest of skill” by the Attorney General.

Other Requirements for Games of Chance

If the contest involves any element of chance, it may be considered a game of chance and subject to other requirements. For example, if the contest involves a raffle, the organization must obtain a license to conduct the raffle from the municipality in which the game or games are to be held, operated or conducted [2.1]. Additionally, there are specific rules regarding the value of prizes, the advertising of the raffle, and the awarding of prizes [4.2][3.2][3.3].

If the contest involves a Golf Hole-in-One Contest, there are specific rules regarding the prize limit, insurance, and the conduct of the contest [3.1][3.4]. If alcohol is offered as a prize, there are specific rules regarding the age of participants and the packaging of the alcohol [4.3].

Conclusion

In summary, it is possible to offer contests that involve both skill and chance in New Jersey, but the contest must primarily involve skill and must be approved as a “contest of skill” by the Attorney General. If the contest involves any element of chance, there may be additional requirements that must be met.

Source(s):
Jurisdiction

New Jersey