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Can I offer contests that involve both skill and chance in Pennsylvania? What are the requirements?
Requirements for Offering Contests Involving Skill and Chance in Pennsylvania
Yes, you can offer contests that involve both skill and chance in Pennsylvania, but you must comply with the state’s regulations.
To offer a special raffle, you must apply for a special raffle permit from the licensing authority. The application must include the following information [1.1]:
- The licensed eligible organization’s name
- The licensed eligible organization’s games of chance license number
- The location of the drawing
- The number of chances to be sold
- The price per chance
- The cash value of the prizes to be awarded
- The date of the drawing
- The date sales will begin
- The certified statement that this part, including the advertising prohibition, will be obeyed.
To offer a fantasy contest, you must obtain a fantasy contest license from the Pennsylvania Gaming Control Board and comply with the following conditions [2.1][3.1][3.2][3.3]:
- The value of all prizes or awards offered to winning participants is established and made known in advance of the fantasy contest.
- The value of the prize or award is not determined by the number of participants or the amount of fees paid by the participants.
- The winning outcome reflects the relative knowledge and skill of the participant.
- The winning outcome is not based on the score, point spread, or performance of a single actual team or combination of teams, or solely on a single performance of an individual athlete or player in a single actual event.
- The winning outcome is based on statistical results accumulated from fully completed athletic sports contests or events, except that participants may be credited for statistical results accumulated in a suspended or shortened sports event which has been partially completed on account of weather or other natural or unforeseen event.
To obtain a fantasy contest license, you must fulfill the criteria set by the Board or contained in 4 Pa.C.S. Chapter 3, including the execution of a statement of conditions. You must also be found suitable consistent with the laws of the Commonwealth and be otherwise qualified to be issued a fantasy contest license [3.4].
The Board will review your application to ensure compliance with 4 Pa.C.S. Chapter 3 and Board regulations. If you fail to include any required documentation or information, you will be notified and given an opportunity to cure the deficiency. Upon a determination that the prerequisites for filing have been met, the application will be accepted for filing and Board staff will obtain information as may be necessary to determine the qualifications of the applicant and any matter relating to the application. An application submitted under this subpart and information obtained by Board staff relating to the application will be part of the evidentiary record to be utilized by the Board when deciding to approve, condition, issue, or deny a fantasy contest license. A determination as to the merit of the applicant to receive a fantasy contest license will be made within 120 days. If the license is not approved, the Board will provide the applicant with the justification for not issuing the fantasy contest license [3.5][3.6].
It is important to note that a game of chance may not be manufactured for sale and use in this Commonwealth in which a participant who purchases a chance in the game can control, effect, or choose the winning chance or chances or the corresponding prize or prizes [1.2].
Therefore, to offer contests that involve both skill and chance in Pennsylvania, you must comply with the requirements for special raffles and fantasy contests and ensure that participants cannot control the winning chances or prizes.
Source(s):
- [1.1] Special raffle permit application.
- [2.1] Fantasy contests generally.
- [3.1] Fantasy contests generally.
- [3.2] General licensing requirements.
- [3.3] General licensing requirements.
- [3.4] Fantasy contest license issuance and statement of conditions.
- [3.5] Application review and processing.
- [3.6] Application review and processing.
- [1.2] Prohibition against participant control of winning chances or prizes.
Jurisdiction
Pennsylvania