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

Based on the information provided in the Pennsylvania Code, licensed eligible organizations are allowed to offer contests that involve cash prizes in Pennsylvania, subject to certain requirements.

Requirements for Offering Contests with Cash Prizes in Pennsylvania

  1. Ownership of Prizes: The licensed eligible organization conducting the contest must have paid for in full or otherwise become the owner, without lien or interest of others, of the real or personal property prior to the drawing at which the winners of the prizes are to be determined [61 PACO Section 901.744].
  2. Prize Limits: A licensed eligible organization may not award an individual prize that exceeds $500 except under a special raffle permit, a daily drawing as provided in § 901.702(e)(1) (relating to prize limits) or a weekly drawing [61 PACO Section 901.507]. Additionally, a licensed eligible organization may not award a prize that causes the total prizes awarded for an operating week to exceed $5,000 except under a special raffle permit, a daily drawing as provided in § 901.702(e)(1) or (2) (relating to prize limits) or a weekly drawing as provided in § 901.702(f)(2) [61 PACO Section 901.508].
  3. Illegal Prizes: A prize may not be given which is illegal under a municipal, State or Federal law [61 PACO Section 901.29].
  4. Payment of Prizes to Minors: If the person entitled to a prize on a winning ticket is under the age of 18 years, and the prize is $10,000 or less, the Bureau will make payment of the prize as the court may direct, to the minor, guardian or other person under 20 Pa.C.S. Chapter 51 (relating to minors). If the person entitled to a prize on a winning ticket is under the age of 18 years, and the prize exceeds $10,000, the Bureau will make payment of the prize to the person as shall have been validly appointed a guardian of the estate of the minor child as provided by appropriate court order under 20 Pa.C.S. Chapter 51 [61 PACO Section 811.27].

Conclusion

Licensed eligible organizations are allowed to offer contests that involve cash prizes in Pennsylvania, subject to certain requirements. These requirements include ownership of prizes, prize limits, prohibition of illegal prizes, and payment of prizes to minors.

Jurisdiction

Pennsylvania