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

Based on the additional context documents, the existing response can be refined as follows:

Requirements for Contests with Cash Prizes

According to NDAC Section 99-01.3-05.1-03 and NDAC Section 99-01.3-05-06, contests with cash prizes must adhere to the following requirements:

1. Prizes must only be cash and must be fifty percent or more of gross proceeds for each single event raffle. However, a single cash prize may not exceed twenty-five thousand dollars and the total cash prizes may not exceed twenty-five thousand dollars during a day. Prize payouts must be based on ticket sales and not on cash retained by sellers. The maximum cash prize limits of this section do not apply to a public-spirited organization that supports amateur collegiate athletics. The public-spirited organization’s primary purpose must include support of collegiate athletics.
2. A prize winner must be drawn on the date and at the location indicated on a bearer ticket.
3. The winning draw number must be selected from all sold draw numbers from the current single event raffle drawing.
4. The organization shall post or publish by a public means, the winning draw number and where the prize may be claimed. A winning player need not be present when a drawing is held but shall claim the prize within five business days. A statement of the time of the drawing and redemption period must be on all promotional material and be posted at a site. If a prize is not claimed due to time limitations, the organization shall contact the attorney general.
5. If there is a power failure or technical problem with the system and the system can no longer be used, the raffle drawing must not occur until the power or system has been restored and all purchased draw numbers have been printed into the receptacle. The attorney general is to be notified immediately if a raffle drawing occurs and the organization later determines that not all eligible draw numbers were placed into the draw container. The organization shall specify the total number and draw numbers of the affected tickets and provide an explanation for how the problem occurred.
6. When the sales price of a raffle ticket relates partly to admission for a meal or other nongaming activity, an organization shall deposit the total receipts into its gaming account and allocate the amount between gaming and nongaming activity in this order: a. An amount is allocated to raffle gross proceeds equal to the cost of the prize. b. An amount is allocated to nongaming activity to recover its cost. This amount must be documented and is not reported on a tax return. c. The remaining amount is allocated to raffle gross proceeds.

Organizations Eligible to Hold Contests

According to NDAC Section 30-03-05-02, only nonprofit veterans, charitable, education, religious, and fraternal organizations, civic and service clubs, and public-spirited organizations, as those organizations are defined in North Dakota Century Code chapter 53-06.1 will be issued permits to hold fishing contests. Exemptions to this requirement may be granted by the game and fish director, if, in the opinion of the director, the contest is not detrimental to the fishery resource or to the public, or both.

Conclusion

Based on the above requirements, it is possible to offer contests that involve cash prizes in North Dakota. However, it is important to ensure that the contest adheres to all relevant laws and regulations. Additionally, only certain organizations are eligible to hold contests, so it is important to ensure that the organization meets the necessary criteria.

Jurisdiction

North Dakota

• Gaming