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

Yes, you can offer contests that involve cash prizes in California, but you must comply with the regulations set forth in the California Code of Regulations, Title 11, Division 3, Chapter 33, Article 9.

Requirements for Offering Contests with Cash Prizes in California

To offer contests that involve cash prizes in California, you must comply with the following requirements:

  1. If you plan to offer raffles, you must be a private non-profit organization and hold a valid registration issued pursuant to section 2086 of these regulations [2.1].
  2. Raffle tickets shall be sold only to persons 18 years of age or older. It is the responsibility of the eligible organization to ensure that raffle ticket sellers at registered events ask for and are provided a valid government-issued identification by ticket purchasers to ensure that raffle tickets are sold only to persons 18 years of age or older [1.2].
  3. Raffle rules must be posted at kiosk locations and, where available, on the eligible organization’s website. Every eligible organization shall establish and adhere to its raffle rules for the conduct of the raffle. At a minimum, the raffle rules shall contain all of the information specified in section 2103 of these regulations [1.3].
  4. If you plan to use an electronic raffle system, the system must be certified by an independent gaming test laboratory and must meet standards no less stringent than GLI-31 [1.4].

Failure to comply with these regulations may result in disciplinary action, including registration revocation [1.5].

Note that these regulations apply specifically to raffles and may not apply to other types of contests. If you plan to offer a different type of contest, you should consult with a legal professional to ensure compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

California