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

To offer contests that involve cash prizes in Colorado, you must comply with the state’s laws and regulations. The Colorado Lottery is the only entity authorized to conduct lotteries in the state. However, other types of contests that involve cash prizes may be allowed if they meet certain requirements.

According to [2.1]" >1 COCR 206-1 RULE 10 10.9, a holder of a winning Jackpot Ticket in the amount of $150.00 or less may take the ticket to any Licensee location during the Licensee’s normal business hours and game operation hours for validation and payment. The holder of a winning Jackpot Ticket in the amount of $151.00 to $599.00 may take the ticket to any Licensee location during the Licensee’s normal business hours and game operation hours. Licensees have the option of validating winning Jackpot Tickets in the amount of $151.00 to $599.00. All prizes shall be paid by the Licensee upon presentation and validation of the ticket pursuant to instructions on the back of the Jackpot Ticket and instructions specified in the specific Game Rule.

The holder of a Prize-Winning Jackpot Ticket of $600.00 or more, or their authorized representative shall complete a claim form and submit the completed form and Ticket to the Colorado Lottery. The Lottery shall pay the Prize upon presentation and Validation of the ticket pursuant to instructions on the back of the Jackpot Ticket and instructions specified in the specific Game Rule. In the event that the intercept program reveals an outstanding obligation for a winner of a Prize, the Prize will not be awarded until the intercept obligation is paid as set forth in C.R.S. 44-40-113(6) and 44-40-114.

Additionally, according to [1.1]" >CORS 44-40-113, the right of any person to a prize is not assignable, except that payment of any prize may be paid to the estate of a deceased prizewinner or any person pursuant to a voluntary assignment of the right to receive future annual prize payments, in whole or in part, if the assignment is made pursuant to an appropriate judicial order of the district court located in the city and county of Denver or the judicial district where the assignor resides or where the commission’s headquarters are located.

Therefore, if you plan to offer contests that involve cash prizes in Colorado, you should consult with an attorney to ensure that your contest complies with all applicable laws and regulations.

Source(s):

• [1.1] Prizes.
• [2.1] Payment of Prizes

Jurisdiction

Colorado

• Gaming