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

Based on the information provided in the context documents, it appears that offering contests that involve cash prizes in Kentucky is possible, but there are certain requirements that must be met.

Requirements for Offering Contests with Cash Prizes in Kentucky

1. The contest must be conducted by a licensed charitable organization ^{[1.1][1.2][1.3][3.2]}.
2. The organization must obtain a special limited charity fundraising event license from the Kentucky Department of Charitable Gaming ^{[1.1][1.2][1.3]}.
3. The organization is limited to two special limited charity fundraising event licenses per year, and each event is limited to one session not to exceed six hours ^[1.1][1.3].
4. The event must be conducted only between the hours of 12 noon and 1 a.m. ^[1.1].
5. The event may be held on or in the premises of a licensed charitable organization, in a licensed charitable gaming facility, or at an unlicensed facility under certain conditions ^[1.1][1.3].
6. No cash shall be used in playing special limited charity games at a special limited charity fundraising event. Games shall be played with chips, scrip, or imitation money which shall be purchased only through a central bank or cashier under the authority of the chairperson designated by the licensed charitable organization conducting the special limited charity fundraising event ^[1.1].
7. Chips, scrip, or imitation money may be redeemed for cash or prizes. Prizes to be offered and their fair market values shall be displayed or listed in a conspicuous location within the gaming area. Prizes shall be redeemed directly or through an auction process within twenty-four (24) hours after the conclusion of the event ^[1.1].

It is important to note that these requirements are specific to charitable organizations and special limited charity fundraising events. If the contest is not conducted by a licensed charitable organization or does not meet the requirements outlined above, it may not be legal in Kentucky.

Therefore, if you are planning to offer contests that involve cash prizes in Kentucky, it is recommended that you consult with the Kentucky Department of Charitable Gaming to ensure that you are in compliance with all applicable laws and regulations.

^[1.1]: KYRS 238.547 ^[1.2]: KYRS 238.540 ^[1.3]: KYRS 238.545 ^[3.2]: KYRS 154A.110

Source(s):

• [1.1] Special limited charitable fundraising event licenses – Limitation – Times – Locations – Restrictions on wagering, stakes, and prizes.
• [1.2] Restrictions on location for charitable gaming – Display of license – Conduct and management – Prohibited donated prizes – Advertising.
• [1.3] Restrictions on frequency, prizes, and participants for various types of charitable gaming – Limitations on charitable organizations that conduct charity fundraising events.
• [3.2] Prizes taxable – Withholdings from prize – Verification rules and prize payments, exceptions – Unclaimed prize money – Corporation’s liability – Ineligibility to purchase tickets and receive prizes – Conditions for assignment of prize.

Jurisdiction

Kentucky

• Gaming