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

Based on the Nebraska Lottery and Raffle Act, contests that involve cash prizes are allowed in Nebraska, but they must comply with certain requirements.

Requirements for Contests with Cash Prizes in Nebraska

  1. The contest must not be considered a raffle under Nebraska law. A raffle is defined as a gambling scheme in which participants pay or agree to pay something of value for an opportunity to win, and winners are determined by a random drawing of tickets or by the method set forth in section 9-511.01 [1.1][1.2].
  2. The contest must not use any mechanical, computer, electronic, or video gaming device which has the capability of awarding something of value, free games redeemable for something of value, or tickets or stubs redeemable for something of value [1.1][1.2].
  3. The contest must comply with all other requirements of the Nebraska Lottery and Raffle Act, including the requirement that all lottery or raffle tickets or stubs bear the name and identification number of the licensed organization conducting the contest, and that the organization keep a record of all locations where its tickets or stubs are sold [1.5].
  4. If the contest has gross proceeds of more than $1,000, the licensed organization conducting the contest must pay a tax of two percent of the gross proceeds to the Nebraska Department of Revenue [1.8].
  5. If the contest is conducted by a nonprofit organization, the gross proceeds of the contest must be used solely for charitable or community betterment purposes, awarding of prizes, and expenses [1.6].

Conclusion

You can offer contests that involve cash prizes in Nebraska, but you must comply with the requirements outlined above.

Source(s):
Jurisdiction

Nebraska