Can I offer contests that involve cash prizes in Alabama? What are the requirements?

Based on the documents provided, offering contests that involve cash prizes in Alabama is allowed, but there are certain requirements that must be met.

Requirements for Contests with Cash Prizes in Alabama

• The prize or award shall not exceed twelve thousand five hundred dollars ($12,500) ^[1.1].
• The dollar value of each and every prize shall be announced and made known to all players ^[3.1].
• The contest operator shall implement commercially reasonable procedures to prevent the sharing of confidential information that could affect contest play with third parties until information is made publicly available ^[4.2].
• The contest operator shall provide reasonable steps to prevent players from submitting more than the allowable number of entries ^[4.2].
• The contest operator shall segregate player funds from operational funds or maintain a reserve that equals or exceeds the amount of player funds on deposit, which reserve may not be used for operational activities ^[4.2].
• The contest operator shall contract with a third party to annually perform an independent audit, consistent with the standards established by the American Institute of Certified Public Accountants, to ensure compliance with the relevant laws and regulations ^[4.2].

Conclusion

In summary, contests that involve cash prizes are allowed in Alabama, but there are certain requirements that must be met to ensure compliance with the relevant laws and regulations.

Source(s):

• [1.1] (Effective January 1, 2018) Construction; limitation on prizes or awards.
• [3.1] Bingo games - Certain activities prohibited; value of prizes.
• [4.2] Fantasy constest procedure requirements.

Jurisdiction

Alabama

• Gaming