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

Offering Contests with Cash Prizes in Wyoming

Yes, you can offer contests that involve cash prizes in Wyoming, subject to certain requirements. According to WY Stat § 6-7-101 et seq., contests and sweepstakes are legal in Wyoming as long as they are conducted in compliance with state law.

To offer a contest with cash prizes in Wyoming, you must comply with the requirements outlined in WY Stat § 6-7-102. This statute requires that all contests and sweepstakes must clearly disclose the rules, terms, and conditions of the promotion, including the method of selecting winners and the nature and value of the prizes.

If you are offering a contest that involves soliciting individuals for payment in exchange for the chance to win a prize, you must comply with the requirements outlined in WY Stat § 40-12-202 et seq. This statute requires that you provide a written prize notice that contains all of the information required under WY Stat § 40-12-203(a), including the name and address of the solicitor and sponsor, the verifiable retail value of each prize, and any requirements or invitations for the individual to view, hear, or attend a sales presentation in order to claim a prize.

Additionally, if you are unable to provide the advertised prize, you must comply with the requirements outlined in WY Stat § 40-12-205. This statute requires that you provide the individual with any one (1) of the following items selected by the individual: (i) Any other prize listed in the written prize notice that is available and that is of equal or greater value; (ii) The verifiable retail value of the prize in the form of cash, a money order or a certified check; (iii) A voucher, certificate or other evidence of obligation stating that the prize will be shipped to the individual within thirty (30) days at no cost to the individual.

If you are offering an online sports wagering tournament, contest, or pool, you must comply with the requirements outlined in WY Stat § 38-0002-4. This statute requires that you file written notice with the Wyoming Gaming Commission before offering any tournament, contest, or pool type, and obtain approval from the Commission. You must also maintain a record of each tournament, contest, or pool you offer, which must include information such as the name or identification of the tournament, the date and time it occurred, the rules concerning tournament play and participation, and the amount of entry fees collected and winnings paid.

In terms of taxation, each sports wagering operator or sports wagering vendor shall, at all times, comply with Internal Revenue Service (IRS) requirements for reporting and withholding proceeds from online sports wagers by patrons and shall send to patrons subject to IRS reporting or withholding a Form W2-G summarizing the information for tax purposes following a winning wager being deposited into an account. Upon written request, the sports wagering operator or sports wagering vendor shall provide patrons with summarized tax information on sports wagering activities ^[1.3].

In summary, to offer contests with cash prizes in Wyoming, you must comply with the requirements outlined in WY Stat § 6-7-102, WY Stat § 40-12-202 et seq., WY Stat § 40-12-205, and WY Stat § 38-0002-4.

Source(s):

• [1.3] Taxation Requirements.

Jurisdiction

Wyoming

• Gaming