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

Based on the additional context documents, the requirements for claiming prizes in Arizona are outlined in ^[2.1] and ^[4.1]. However, it is still not allowed to offer cash prizes in Arizona for contests or games ^[1.1].

Procedure for Claiming Prizes

To claim a prize of up to and including $599, the claimant shall present the ticket or other Lottery-approved proof of game purchase to any participating licensed Lottery retailer or to a Lottery office, or mail the ticket to a Lottery office for validation. The licensed retailer shall pay a winner a prize up to and including $100 and may pay a winner a prize up to and including $599 provided that all applicable ticket validation criteria in this chapter has been satisfied and a proper validation slip, which is an authorization to pay, has been issued by the terminal ^[2.1].

To claim a prize that the retailer does not validate or is not authorized to pay, including all prizes of $600 or more, the claimant shall submit a claim form, available from any retailer and online, and the ticket to the Lottery. If the claim is verified and validated by the Lottery as a winning ticket, the Lottery shall make payment of the amount due to the claimant, less any authorized debt set-off amounts and/or withheld taxes. If the claim is denied by the Lottery, the claimant shall be notified within 15 days from the day the claim is received in the Lottery office ^[2.1].

Prize Validation and Payment

A licensed retailer shall provide prize validation and payment services for instant scratch tickets or on-line tickets to any Lottery claimant regardless of where the ticket was purchased to be eligible for the highest sales commission compensation rate. A licensed retailer shall pay all winning prizes for instant scratch tickets or draw game tickets up to and including $100, and may pay all winning prizes from $101 up to and including $599. For prizes over $600, a licensed retailer with a Redemption Agent endorsement shall determine, through the Lottery provided equipment, and prior to paying the prize, whether the holder of a winning lottery ticket is subject to Arizona debt set-off requirements under A.R.S. § 5-575. A licensed retailer with a Redemption Agent endorsement shall be responsible for verification of identity and social security number and shall require prizewinners to provide acceptable identification and documentation. Prizewinners who cannot provide a licensed retailer with a Redemption Agent endorsement the documentation as required shall be referred to Lottery for prize payment ^[4.1].

Therefore, based on the above information, it is still not allowed to offer cash prizes in Arizona for contests or games.

Source(s):

• [1.1] Prizes
• [2.1] Procedure for Claiming Prizes
• [4.1] Prize Validation and Payment

Jurisdiction

Arizona

• Gaming