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

Here is the updated response to your query:

Offering Contests with Cash Prizes in Minnesota

Yes, you can offer contests that involve cash prizes in Minnesota. However, there are certain requirements that you need to follow.

According to [MNAC 7857.7000], the director of the lottery may establish special drawings, bonuses, or additional prizes independently of, or concurrently with, the operation of the lottery. The nature and number of prizes will be determined by the director. The drawing for promotional prizes may be held independently of the regular prize drawings or may be incorporated with those drawings. The director will make a public announcement to inform the public of the promotions.

Additionally, [MNAC 7857.4041] states that a person claiming a prize that will be paid in the form of installments over a definite period of time, consisting of at least ten years, may elect to receive a single cash payment equal to the present value of the prize that is payable over a definite period of time, in lieu of receiving payment of the prize in installments, if the person notifies the lottery within 60 days of becoming entitled to the prize.

Requirements for Claiming a Prize

If you plan to offer contests with cash prizes in Minnesota, you must follow the requirements for claiming a prize as outlined in [MNAC 7857.4010]. Retailers are authorized and required to pay prizes as determined by the game procedures adopted by the director, consistent with the retailer’s security requirements, as approved by the director. Prizes over $599 must be paid by filing a claim form provided by the lottery. The claimant shall prepare and submit a claim form and the apparent winning ticket to a lottery office for processing. For certain prizes as set in the game procedures for that particular game, the claimant must submit a claim form and the apparent winning ticket in person at the lottery’s headquarters for processing.

Prizes Payable After Death of Prize Winner

According to [MNAC 7857.6000], all prizes or portions of prizes due will remain payable at the time of death of the prize winner. Upon payment as provided under this chapter, the lottery will be absolved of any further liability. The payment of a prize may not be accelerated before the normal date of tender or payment because of the death of the prize winner or for any reason, except as provided in subpart 4.

Assignability of Prizes

Prizes in the lottery are not assignable except: A. if the prize winner dies before the prize is paid the director shall pay the prize as required under law; or B. pursuant to an appropriate court order, which order shall not include an order issued to enforce or approve an agreement between a prize winner and any third party where the prize winner has agreed to transfer future prize payments to a third party in exchange for consideration [MNAC 7857.6020].

Unclaimed Prizes

Unclaimed prize money on a winning ticket will be retained by the lottery for payment to the person entitled to the prize for one year after the drawing in which the prize was won or for one year after the announced end of the game. If no claim is made within that time, the prize money will be used pursuant to law and the holder of the winning ticket shall have no further claim to the prize [MNAC 7857.5010].

Conclusion

In summary, you can offer contests with cash prizes in Minnesota, but you must follow the requirements for claiming a prize as outlined in [MNAC 7857.4010]. Additionally, the director of the lottery may establish special drawings, bonuses, or additional prizes independently of, or concurrently with, the operation of the lottery as per [MNAC 7857.7000]. Prizes are payable after the death of the prize winner as per [MNAC 7857.6000], and prizes are not assignable except under certain circumstances as per [MNAC 7857.6020]. Unclaimed prizes are handled according to [MNAC 7857.5010].

Jurisdiction

Minnesota

• Gaming