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

Yes, it is possible to offer contests that involve cash prizes in North Carolina, but there are certain requirements that must be met depending on the type of contest.

Requirements for Offering Contests with Cash Prizes in North Carolina

  • For bingo games, the maximum prize in cash or merchandise that may be offered or paid for any one game is $500, and the maximum aggregate amount of prizes, in cash and/or merchandise, that may be offered or paid at any one session of bingo is $1,500 [1.1].
  • For game night events, no games may be played for cash or a cash prize. Prizes shall be awarded only through a raffle. Participants may exchange chips, markers, or tokens from the game night event for raffle tickets [1.2].
  • For raffles, it is lawful for any nonprofit organization, candidate, political committee, or any government entity within the State, to conduct raffles in accordance with NCGS 14-309.15. The maximum cash prize that may be offered or paid for any one raffle is $125,000, and the total cash prizes offered or paid by any nonprofit organization shall not exceed $250,000 in any calendar year. The total fair market value of all prizes offered by any nonprofit organization, either in cash or in merchandise that is not redeemable for cash, shall not exceed $250,000 in any calendar year [1.3].
  • For savings promotion raffles, it is lawful for a federally insured depository institution to conduct a savings promotion raffle under G.S. 53C-6-20, 54-109.64, 54B-140, or 54C-180 [1.3].
  • For businesses applying for federal Small Business Innovative Research (SBIR) grants or Small Business Technology Transfer Research (STTR) grants, the North Carolina Board of Science, Technology, and Innovation may provide grants to eligible businesses to offset costs associated with applying for these grants. The grants shall be paid from the One North Carolina Small Business Account established in G.S. 143B-437.71. The maximum grant amount is $12,000, and a business may receive only two grants under this section per year [4.1].

Conclusion

In summary, it is possible to offer contests that involve cash prizes in North Carolina, but there are certain requirements that must be met depending on the type of contest. For bingo games, the maximum prize in cash or merchandise that may be offered or paid for any one game is $500, and the maximum aggregate amount of prizes, in cash and/or merchandise, that may be offered or paid at any one session of bingo is $1,500. For game night events, no games may be played for cash or a cash prize, and prizes shall be awarded only through a raffle. For raffles, the maximum cash prize that may be offered or paid for any one raffle is $125,000, and the total cash prizes offered or paid by any nonprofit organization shall not exceed $250,000 in any calendar year. For businesses applying for federal Small Business Innovative Research (SBIR) grants or Small Business Technology Transfer Research (STTR) grants, the North Carolina Board of Science, Technology, and Innovation may provide grants to eligible businesses to offset costs associated with applying for these grants.

Source(s):
Jurisdiction

North Carolina