Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

Yes, you can offer contests with cash prizes in Montana, but there are specific requirements that must be followed depending on the type of contest.

Requirements for Offering Contests with Cash Prizes in Montana

Raffles

If you want to offer a raffle with cash prizes in Montana, you must follow these requirements:

  • Only a nonprofit organization, a college, a university, a public school district, or a nonpublic school may sponsor and offer a raffle [4.1].
  • The value of a prize awarded for an individual ticket for a raffle conducted by a person or an organization may not exceed $5,000 [1.1].
  • The sale of raffle tickets authorized by this part is restricted to events and participants within the geographic confines of the state. Nonprofit organizations may sell raffle tickets outside the state of Montana if the purchase is not prohibited in the jurisdiction in which the purchaser resides [1.1].
  • Except raffles sponsored by nonprofit organizations, the sale of raffle tickets may not be conducted over the internet [1.1].
  • A raffle sponsor must make all raffle terms available to the public prior to the sale of any raffle tickets. In all cases, a raffle sponsor must establish and make available the date of the raffle drawing [4.2].
  • The following random selection processes are authorized for use in determining a winner of a raffle: a drawing from a drum or other receptacle containing raffle ticket stubs or other suitable indicators of the ticket purchaser’s identity that have been thoroughly mixed before the drawing; an approved 50/50 raffle electronic processing system containing a random number generator; and selection by any other process if the process is reasonably assured of being random and is not connected to an event that has its own intrinsic significance (e.g., a sports event, game of chance, contest) [4.2].

Bingo

If you want to offer a bingo game with cash prizes in Montana, you must follow these requirements:

  • A bingo session must last at least 2 consecutive hours or 20 or more consecutive bingo games. A bingo session may not begin less than 2 hours after the conclusion of a prior session conducted on the same premises [1.2].
  • The price for an individual bingo card may not exceed $1; a prize may not exceed the value of $800 for each individual bingo game, and total bingo prize payouts may not exceed $3,000 during a bingo session [1.2].
  • Any bingo card other than a standard card with 5 columns and 25 squares with 1 number appearing in each square or any card that allows the player to print numbers on the card must be approved by the department prior to being offered for play [1.2].
  • Bingo and keno prizes may be paid in either tangible personal property or cash or in any combination of tangible personal property and cash [1.2].

Conclusion

In summary, you can offer contests with cash prizes in Montana, but you must follow specific requirements depending on the type of contest. For raffles, only certain organizations can sponsor and offer them, and there are restrictions on the value of prizes and the sale of tickets. For bingo games, there are restrictions on the price of individual bingo cards, the value of prizes, and the types of bingo cards that can be used.

Please note that if the prize is over $100,000, it may be paid in equal yearly installments without interest over a period of not more than 20 years [2.1][3.1].

If you have any further questions or concerns, please let me know.

Source(s):
Jurisdiction

Montana