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

Based on the provided context documents, it is legal to offer contests that involve cash prizes in Ohio. However, there are certain requirements that must be followed.

According to OHAC Rule 109:1-4-16, non-cash prizes may also be awarded in instant bingo games. When calculating gross profit, the organization must record the value of the non-cash prize as the amount actually expended by the organization for the purchase of the non-cash prize, including the actual cost of the non-cash prize and any sales tax actually expended by the organization for the purchase of the non-cash prize. The organization must pay for the purchase of non-cash prizes by check or electronic fund transfers drawn from the checking account devoted exclusively to the bingo session or game.

OHAC Rule 3770:1-8-01 states that every ticket which is duly sold or is deemed to be duly sold in accordance with the rules and regulations will be valid unless otherwise made void in accordance with the rules. Tickets are bearer instruments and only the holder of a valid winning ticket will be entitled to the lottery prize award if such winning ticket is fully validated and the prize is claimed and presented for payment within the established redemption period as specified in rule 3770:1-8-04 of the Administrative Code.

OHAC Rule 3772-14-02 outlines monetary controls for player against player contests. A casino operator must have written procedures for collecting a rake, including entry fees or other consideration, during the conduct of player against player contests. The rake shall accumulate to gross casino gaming revenue. Winnings paid in a tournament shall be deductible from gross casino gaming revenue, but any such deduction shall not exceed the total rake, including entry fees or other consideration, received for the tournament and non-cash winnings shall be deductible only to the dollar value of the amount invoiced to and paid by the casino operator.

OHRC Section 3770.07 outlines the claiming of prizes and the unclaimed lottery prizes fund. Lottery prize awards shall be claimed by the holder of the winning lottery product, or by the executor or administrator, or the trustee of a trust, of the estate of a deceased holder of a winning lottery product, in a manner to be determined by the state lottery commission, within one hundred eighty days after the date on which the prize award was announced if the lottery game is an online game, within one hundred eighty days after the close of the game if the lottery game is an instant game, and within one hundred eighty days after the end of the sporting event or series of sporting events on which the wager was placed if the lottery game is lottery sports gaming. Any lottery prize award with a value that meets or exceeds the reportable winnings amounts set by 26 U.S.C. 6041 shall not be claimed by or paid to any person until the name, address, and social security number of each beneficial owner of the prize award are documented for the commission. If no valid claim to a lottery prize award is made within the prescribed period, the prize money, the cost of goods and services awarded as prizes, or, if goods or services awarded as prizes are resold by the state lottery commission, the proceeds from their sale shall be returned to the state lottery fund and distributed in accordance with section 3770.06 of the Revised Code.

Therefore, if you plan to offer contests that involve cash prizes in Ohio, you must ensure that the contest is conducted in accordance with the rules and regulations set forth by the Ohio Lottery Commission. Additionally, you must ensure that the cash prizes are awarded only to the holder of a valid winning ticket and that the prize is claimed and presented for payment within the established redemption period. If you are conducting player against player contests, you must follow the monetary controls outlined in OHAC Rule 3772-14-02. Finally, you must ensure that any lottery prize awards are claimed within the prescribed period and that the necessary documentation is provided to the commission.

Jurisdiction

Ohio

• Gaming