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

Based on the provided context documents, it is possible to offer contests that involve cash prizes in New York, but there are requirements that must be followed.

Requirements for Offering Contests with Cash Prizes in New York

According to [1.1], prizes for contests must be redeemed or claimed only in New York through lottery sales agents or authorized claim centers. Claimants of a winning ticket must comply with the prize claim requirements of the commission. In addition, federal, state, and local taxes shall be withheld from prizes in such amounts as may be required by law. Prizes shall not be paid by the commission to any persons prohibited from playing within New York State. There shall be no assignment of prizes except as specifically set forth in this Title. Each prize winner shall be subject to a publicity release as set forth in this Title. Child support arrears, public assistance benefits, and past due State tax liabilities shall be withheld from prizes in such amounts as may be required by law.

According to [3.1], if the prize is over five thousand dollars, the division shall deliver to the comptroller a certified list of the tickets to which prizes are awarded and the amount of each such prize. Upon receipt of such certified list and voucher of the division, moneys sufficient for the payment of such prizes shall be paid to the division from the lottery prize account, upon audit and warrant of the comptroller. Payment of prizes shall be made by the division to holders of the tickets to which prizes are awarded, except that payment of any prize drawn may be paid to the estate of a deceased prize winner, may be paid pursuant to a court order granted as a result of a proceeding as provided in subdivision d of this section, and except that any person pursuant to an appropriate judicial order may be paid the prize to which the winner is entitled.

According to [4.2], no single prize in any casino-type game of chance shall exceed the sum or value of $300. In the game of chance known as merchandise wheels, no single prize consisting of merchandise shall exceed a value, defined in section 4622.13 of this Part, of $250. In the game of chance known as bell jars, no single prize shall exceed the sum of $500. In the game of chance known as raffle no single prize shall exceed the sum of $100,000. Except for merchandise wheels, bell jars and raffles, no series of prizes on any one occasion shall aggregate more than $400 for each single type of game of chance when the licensed authorized organization conducts five single types of games of chance during any one license period. Except for merchandise wheels, bell jars and raffles, no series of prizes on any one occasion shall aggregate more than $500 for each single type of game of chance when the licensed authorized organization conducts less than five single types of games of chance during any one license period. Except for the limitations on the sum or value for single prizes and series of prizes for each type of game of chance, no limit shall be imposed on the total number, sum or value of prizes awarded to any one participant during any occasion or any license period.

Conclusion

In conclusion, it is possible to offer contests with cash prizes in New York, but there are requirements that must be followed. Prizes must be redeemed or claimed only in New York through lottery sales agents or authorized claim centers, and claimants of a winning ticket must comply with the prize claim requirements of the commission. Federal, state, and local taxes shall be withheld from prizes in such amounts as may be required by law. Prizes shall not be paid by the commission to any persons prohibited from playing within New York State. There shall be no assignment of prizes except as specifically set forth in this Title. Each prize winner shall be subject to a publicity release as set forth in this Title. Child support arrears, public assistance benefits, and past due State tax liabilities shall be withheld from prizes in such amounts as may be required by law. The maximum value of a single prize depends on the type of game of chance, and there are limits on the sum or value for single prizes and series of prizes for each type of game of chance.

Source(s):
Jurisdiction

New York