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

Requirements for Offering Contests with Cash Prizes in Maryland

If you are planning to offer contests with cash prizes in Maryland, you must comply with the following requirements:

  1. Obtain a permit from the Maryland Lottery and Gaming Control Agency [1.1].
  2. Follow all regulations pertaining to the game and the ticket [1.5].
  3. Pay the winner of the contest up to $600 in cash upon submission and validation of the winning ticket [1.1].
  4. Instruct the winner to seek payment from the Agency or a retailer participating in the Expanded Cashing Authority Program if the prize is more than $600, unless you are a participant in the Expanded Cashing Authority Program [1.1].
  5. Abide by the time frames established by the Maryland Lottery and Gaming Control Agency for submitting a court order assigning the lottery prize payment [2.1].
  6. Be financially responsible to the Agency for all revenues derived from the sale of lottery tickets, lottery tickets in your possession, and tickets that you cashed or cancelled which are later submitted to the Agency for payment [1.7].

How to Obtain a Permit

To obtain a permit from the Maryland Lottery and Gaming Control Agency, you must submit an application and pay a fee. The application must include the following information [1.1]:

  1. The name and address of the applicant.
  2. The name and address of the person responsible for conducting the contest.
  3. The name and address of the person responsible for the payment of prizes.
  4. The name and address of the person responsible for the sale of tickets.
  5. The name and address of the person responsible for the printing of tickets.
  6. The name and address of the person responsible for the distribution of tickets.
  7. The name and address of the person responsible for the security of tickets.
  8. The name and address of the person responsible for the conduct of the drawing.
  9. The name and address of the person responsible for the payment of taxes.
  10. The name and address of the person responsible for the payment of any other fees required by law.

Additional Information

  • Prizes may be paid on a pari-mutuel basis if certain levels of prize liability are reached [1.2].
  • A cashout voucher may be presented for payment only to the operation licensee where the voucher was printed or an Agency claim center [1.3].
  • The Maryland Lottery and Gaming Control Agency may establish an Expanded Cashing Authority Program, which allows retailers selected by the Director to pay cash prizes up to $5,000 [1.4].
  • If a charitable organization undertaking a raffle of real property agrees to compensate any other person for assistance in conducting the raffle, the charitable organization shall file a copy of that agreement, which shall be in writing, with the Secretary of State within 10 days of its execution [3.1].
  • To offer contests with cash prizes in Maryland, you may not sell a ticket at any price other than that established by the Director, sell to or cash a lottery ticket for a person younger than 18 years old, extend credit in any manner for the sale of lottery tickets, or offer customers alcoholic beverages to induce them to purchase or redeem a lottery ticket [1.6].

Conclusion

To offer contests with cash prizes in Maryland, you must obtain a permit from the Maryland Lottery and Gaming Control Agency, follow all regulations pertaining to the game and the ticket, and comply with the payment requirements outlined in MDCR 36.02.03.07.

Source(s):
Jurisdiction

Maryland