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

Yes, you can offer contests that involve cash prizes in Massachusetts. Here are the requirements you need to comply with:

Requirements for Offering Contests with Cash Prizes in Massachusetts

  1. Payment of Prizes: All prizes must be paid within a reasonable time after they are awarded and after the claims are verified by the Director. If any prize is payable for the life of the prize winner, only a natural person may claim such a prize [1.1][2.1][3.1].
  2. High-frequency Prize Winner: If you are a high-frequency prize winner, the Director may conduct an internal review of your claims to determine if the submission of at least 20 claims for Lottery prizes, each with a value of at least $1,000.00, within any period of 365 days, is factually or statistically improbable. If the Director makes such a determination of factual or statistical improbability, the Director may impose a prize claim suspension [1.1][2.1].
  3. Procedure for Claiming Prizes: All cash prizes must be claimed through a Sales Agent, a duly authorized Claims Center or Office, or at the sole discretion of the Director, through the Mobile Claim Process. To be eligible for a prize, the prize winner must submit an original winning ticket prior to the expiration of the claim period. For prizes of $600.00 or greater, but less than $103,000.01, a claim is valid only when the original winning ticket has been presented for payment, a claim form has been properly completed, and the ticket has been validated by the Lottery’s computer gaming system and verified by Lottery internal validation requirements at a Lottery office or duly authorized claim center. For prizes of $103,000.01 or greater, a claim is valid only when the original winning ticket has been presented for payment, a claim form has been properly completed, and the ticket has been validated by the Lottery’s computer gaming system and verified by Lottery internal validation requirements at the office of the Director [1.2].
  4. Prizes Payable after Death or Disability of Owner: All prizes or a portion thereof which remain unpaid at the time of the prize winner’s death shall be payable to his or her duly qualified Administrator, Executor or other representative of his or her estate once satisfactory evidence of said representative’s appointment has been presented to the Director, claim forms have been properly filled out, and the Director is satisfied that such payment is lawful and proper [4.1][1.3].

Therefore, to offer contests with cash prizes in Massachusetts, you must comply with the above requirements.

Source(s):
Jurisdiction

Massachusetts