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

Yes, you can offer contests that involve cash prizes in Mississippi, subject to certain requirements.

Requirements for Offering Contests with Cash Prizes in Mississippi

  • The value of all non-cash prizes shall be equal to the fair market value or normal and reasonable selling price of such prize [1.1].
  • The total amount of prizes which may be awarded in any one (1) session by a bingo location shall not exceed Seven Thousand Five Hundred Dollars ($7,500.00) in cash or other items of value offered as a prize or Eight Thousand Dollars ($8,000.00) if only one (1) session is held in any one week [1.1].
  • The total amount of prizes which may be awarded in any one day under a charitable limited license shall not exceed Fifteen Thousand Dollars ($15,000.00) [1.1].
  • No commission, salary, compensation, reward or recompense, including but not limited to bonuses, incentive pay, loans, granting or use of bingo cards without charge or at a reduced charge, shall be paid or given to any person holding, operating, conducting or assisting in holding or operating any licensed bingo game, either directly or indirectly by the charitable organization except as authorized by Section 97-33-69 (3) and these rules [1.1].
  • The charitable organization is prohibited from compensating any member or other person who, acting on behalf of the charitable organization, organizes, arranges, directs, oversees, consults, confers or in any manner participates in the holding of a bingo game other than the exception as authorized by statute and described in this section and in 13 Miss. Admin. Code Pt. 12, R. 5.4 [1.1].
  • Authorized expenditures include the actual and reasonable costs of purchasing or leasing necessary supplies, equipment and materials used exclusively in the holding of the bingo game [1.1].
  • Authorized expenditures include the actual and reasonable cost incurred in obtaining and performing necessary bookkeeping, security and janitorial services for the holding, operating or conducting of the bingo game [1.1].
  • No charitable organization shall pay any consulting fee to any person for any service performed in relation to the conducting of a bingo game, nor pay any concession fees to any person who provides refreshments to the participants [1.1].
  • No lease which provides for a rental arrangement for premises or a lease of equipment may provide any payment in excess of the reasonable market rental rate. No lease payment may be based on a percentage of gross receipts or profits derived from any bingo game [1.1].
  • The monthly report required to be filed with the Commission must list each item of expense incurred and each item of expenditure made or to be made [1.1].
  • In order to ensure that authorized bingo games are actually held for the benefit of a charitable organization, and that a bingo location’s net proceeds are expended for the purposes for which the charitable organization was created, a bingo location’s authorized expenses may not exceed sixty percent (60%) of its adjusted gross receipts from bingo activities [1.1].
  • To ensure that all net proceeds derived from a bingo game authorized by the Charitable Bingo Law shall be expended only for the purposes for which the charitable organization is created, the Commission shall have the power to audit the flow of funds, whether gross proceeds or net proceeds, that are expended by the charitable organization to maintain at least 65% of the net proceeds from the bingo location to be expended for direct program services [1.1].
  • Raffles are allowed if sponsored by a nonprofit civic, educational, wildlife conservation or religious organization and all proceeds must go to that organization, to be dispersed in accordance with the organization’s rules and regulations [2.2].

Additionally, it is important to note that the Mississippi Lottery Law authorizes certain games and lotteries [2.1][2.3].

Furthermore, if the contest is held by a charitable organization, it is important to ensure that the net proceeds are expended only for the purposes for which the charitable organization is created [1.1].

Finally, it is important to comply with the Cash Reserve and Segregated Account Requirements [3.1] to protect player funds in the contest.

Therefore, it is possible to offer contests that involve cash prizes in Mississippi, but it is important to comply with the requirements set by the law and protect player funds.

Source(s):
Jurisdiction

Mississippi