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

Yes, you can offer contests that involve cash prizes in New Jersey as long as they are considered a “contest of skill” and not a game of chance. The winner or winners must be selected solely on the quality of an entry in the contest as determined by a panel of judges using uniform criteria to assess the quality of entries. The contest must be approved as a “contest of skill” by the Attorney General, and it must not constitute unlawful gambling under the laws of New Jersey. The contest must not subject the participant or the sponsor of the contest of skill, or any officer, employee, or agent of the sponsor, to any civil or criminal liability under the laws of New Jersey that prohibit gambling [1.1].

However, there are some prohibited prizes that cannot be offered or awarded, including real estate or any interest therein, bonds, shares of stock, securities or evidences of indebtedness, weapons, live animals (except a gift certificate redeemable for live, edible seafood), foreign or domestic coins (except collector pieces or sets that are marketed as such and are clearly not intended for use as legal tender), tobacco products, motor vehicle leases, or any merchandise refundable in any of the foregoing or as money or cash. A prize consisting of cash or money shall not be offered or awarded except in the case of a raffle conducted by drawing with the prize(s) equaling 50 percent of the amount received for all tickets or fights to participate, a calendar raffle with the maximum prize amount not to exceed $25,000, an instant raffle game having a maximum prize amount of $1,500 for any one ticket, any bingo game(s) held, operated and conducted in accordance with the provisions of this chapter and the Bingo Licensing Law, 5:8-24 et seq., or big six wheels and horse race wheels conducted in accordance with the provisions set forth in N.J.A.C. 13:47-8 [2.1].

If you are offering an off-premise raffle awarding cash or money as a prize, each ticket must contain at least the following information: name and identification number of the qualified organization and number of the license issued for the occasion, place where the occasion will be held and the date and time thereof, the statement “This is a 50/50 cash raffle and the winner will receive 50 percent of the amount received for all tickets or rights to participate,” if the prize pool is to be divided among multiple winners, the ticket must indicate the percentage of the prize pool that each winner will receive, the number of the ticket, price of the ticket, the purpose to which the entire net proceeds will be devoted, and the statement “No substitution of the offered prize may be made.” The presence of the holder of a ticket shall not be required in order to win unless the ticket bears the statement “NOT VALID UNLESS HOLDER IS PRESENT AT THE DRAWING.” The stub of each ticket shall bear the name and address of the holder, the number of the ticket, the raffle license issued for the occasion, and the identification of the licensed organization. All information required by the above must be clearly and conspicuously set forth on the face of the ticket [3.2].

If you are offering an off-premise raffle awarding merchandise as a prize, each ticket must contain at least the following information: name and identification number of the qualified organization and number of the license issued for the occasion, place where the occasion will be held and the date and time thereof, a list of the prizes and the retail value of each, the number of the ticket, price of the ticket, the purpose to which the entire net proceeds will be devoted, and the statement “No substitution of the offered prize may be made and no cash will be given in lieu of the prize.” The presence of the holder of a ticket shall not be required in order to win unless the ticket bears the statement “NOT VALID UNLESS HOLDER IS PRESENT AT THE DRAWING.” The stub of each ticket shall bear the name and address of the holder, the number of the ticket, the raffle license issued for the occasion, and the identification of the licensed organization. All information required by the above must be clearly and conspicuously set forth on the face of the ticket. If one of the prizes is an alcoholic beverage, the ticket must bear the statement “Winner must be at least 21 years of age” [3.4].

In summary, you can offer contests that involve cash prizes in New Jersey as long as they are considered a “contest of skill” and not a game of chance. However, there are prohibited prizes that cannot be offered or awarded. If you are offering an off-premise raffle awarding cash or money as a prize, each ticket must contain specific information, and the presence of the holder of a ticket shall not be required in order to win unless the ticket bears the statement “NOT VALID UNLESS HOLDER IS PRESENT AT THE DRAWING.”

Source(s):
Jurisdiction

New Jersey