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

Based on the additional context provided in ^[2.1], here is the refined response to your query:

Offering Contests with Cash Prizes in Wisconsin

Wisconsin law allows for contests with cash prizes, including lotteries and raffles, but there are specific requirements that must be met.

Requirements for Lotteries

According to WIST 565.30, the administrator of the lottery must direct the payment of a prize to the holder of the winning lottery ticket or lottery share or to a person designated under sub. (2). If the prize is being paid in the form of an annuity, the administrator must establish a procedure for submitting petitions to have the remaining prize money paid in a lump sum. Additionally, the administrator must withhold from lottery winnings any federal income taxes required to be withheld under 26 USC 3402 (q) (3) (B) and any state taxes required to be withheld under s. 71.67 (4) (a). The administrator must also report the name, address, and social security number or federal income tax number of each winner of a lottery prize equal to or greater than $600 to the department of revenue to determine whether the payee or assignee of the prize is delinquent in the payment of state taxes or court-ordered child support or has a debt owing to the state.

Requirements for Raffles

According to WIST 563.908, a raffle may not be conducted in Wisconsin unless any winner in the raffle is determined by a drawing with all tickets or calendars having an equal opportunity to win. A qualified organization under s. 563.907 may not conduct a raffle unless it first receives a license under s. 563.92, except if the raffle tickets are offered for sale only to members of the qualified organization, the prize is a cash award equal to one-half of the ticket proceeds rounded up to the nearest whole dollar, and the prize does not exceed $5,000.

Conclusion

In summary, you can offer contests with cash prizes in Wisconsin, but you must comply with the requirements outlined in WIST 565.30 for lotteries and WIST 563.908 for raffles. These requirements include directing the payment of prizes to the holder of the winning lottery ticket or lottery share, establishing a procedure for submitting petitions to have the remaining prize money paid in a lump sum, withholding federal and state taxes from lottery winnings, and ensuring that all tickets or calendars have an equal opportunity to win in a raffle.

Source(s):

• [2.1] Requirements of raffles.

Jurisdiction

Wisconsin

• Gaming