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

Yes, you can offer contests that involve cash prizes in Virginia. However, there are certain requirements that must be met.

Requirements for Contests with Cash Prizes in Virginia

  1. Claim Period: Any claim for a lottery game winning ticket must be made within 180 days after the date of the drawing for which the ticket was purchased [1.1].
  2. Unclaimed Prizes: Any lottery cash prize that remains unclaimed after either 180 days following the drawing that determined the prize or 180 days after the announced end of the scratch game shall revert to Virginia’s Literary Fund [1.1][2.3].
  3. Withholding Taxes: When paying any prize in excess of $600, the agency shall file the appropriate income reporting forms with the Virginia Department of Taxation and the federal Internal Revenue Service and withhold federal and state taxes from any winning ticket in accordance with the tax regulation in effect at the time [1.5].
  4. Setoff Debt Collection Act: When paying any cash prize of $100 or more, the agency shall withhold any moneys due for delinquent debts as provided by the Commonwealth’s Setoff Debt Collection Act, Article 21 (§ 58.1-520 et seq.) of Chapter 3 of Title 58.1 of the Code of Virginia [1.5].
  5. Using Winners’ Names and Information: The agency can use a winner’s name and the city, town, or county in which a winner lives, as well as the prizes won, for public information purposes and to foster the integrity of the games. The agency may require prize winners to participate in news conferences. The agency can use the winner’s information described in this section and winner’s photographs for public information or promotional purposes in mediums such as, but not limited to, the agency’s website ( social media, in-store, television, Internet, and radio. No consideration shall be paid by the agency for these purposes [1.4].
  6. License Required for “Instant Ticket” Games or Contests: No person who owns or is employed by any retail establishment in the Commonwealth shall use any “instant ticket” game or contest for the purpose of promoting or furthering the sale of any product without first obtaining a license to do so from the Director [2.1].

Conclusion

To offer contests with cash prizes in Virginia, the requirements mentioned above must be met.

Source(s):
Jurisdiction

Virginia