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

Yes, it is possible to offer contests that involve both skill and chance in Vermont, but there are certain requirements that must be met depending on the type of contest or game of chance.

Requirements for Contests and Sweepstakes

According to 13 VTST 2143b, a person may organize, execute, or participate in a contest or game of chance, including a sweepstakes, provided that persons who enter the contest or game of chance are not required to venture money or other valuable things. The cost of mailing an entry shall not be considered a venture of money or other valuable things. This section shall not be construed to prohibit a person from organizing, executing, or participating in a contest that is not a contest of chance [1.1].

It shall constitute an unfair and deceptive trade act and practice in commerce under 9 V.S.A. Section 2453 (a) for any person to solicit any other person to engage in any kind of a game of skill, contest, sweepstakes, giveaway or other promotion which: a) is deceptive or misleading as to chances of winning, the number of winners, the value of the prizes, or the availability of the prize; b) requires any kind of entry fee, service charge, purchase or similar consideration in order to enter or to continue to remain eligible; or, c) uses publications, literature, written or verbal promotion that is false, deceptive or misleading [2.1].

License Requirements

If the contest or game of chance involves break-open tickets, the manufacturer and distributor of such tickets must be licensed by the Commissioner of Taxes [31 VTST 1202][3.1]. A distributor who sells or distributes break-open tickets for resale in Vermont must also be licensed by the Commissioner and meet certain residency requirements.

Nonprofit Organizations

Nonprofit organizations may organize and execute lotteries, raffles, or other games of chance for the purpose of raising funds to be used in charitable, religious, educational, and civic undertakings or used by fraternal organizations to provide direct support to charitable, religious, educational, or civic undertakings with which they are affiliated [13 VTST 2143][1.2]. However, there are certain limitations and requirements that must be met, such as the amount of prizes offered, the frequency of games of chance, and the filing of financial reports with the Commissioner of Taxes.

Fantasy Sports Contests

Fantasy sports contests are exempt from the provisions of 13 V.S.A. chapter 51, relating to gambling and lotteries [9 VTST 4188][4.2]. However, fantasy sports operators must register with the Secretary of State and pay an annual registration fee of $5,000 [9 VTST 4189][4.1]. Fantasy sports operators must also comply with fair and truthful advertising requirements, including not depicting minors, students, schools or colleges, or college athletic associations in advertisements, and including information concerning assistance available to problem gamblers in advertisements [9 VTST 4187][4.3].

In summary, it is possible to offer contests that involve both skill and chance in Vermont, but there are certain requirements that must be met depending on the type of contest or game of chance. If you are unsure whether your contest or game of chance meets these requirements, it is recommended that you consult with a legal professional.

Source(s):
Jurisdiction

Vermont