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Can I offer contests that involve chance-based games in Massachusetts? What are the requirements?

To offer contests that involve chance-based games in Massachusetts, organizations must meet the requirements outlined in 961 CMR 4.04. Additionally, DFSOs must meet the requirements outlined in 940 CMR 34.13 if they have run 1,000 or more Exempt Contests annually for a period of at least two years. The requirements for offering contests that involve chance-based games in Massachusetts are as follows:

  1. The organization offering the contests must be a Licensed Organization [961 CMR 4.04(1)(a)].
  2. The contests must be approved by the Director in writing [961 CMR 4.04(6)(a)].
  3. Wagers must be placed in the form of chips, script, or the like, and purchased for cash at the Function at which the wager is made. Wagering in the form of currency or representations of credit is expressly prohibited [961 CMR 4.04(6)(b)].
  4. The organization must develop a set of house rules that govern the type, scope, and manner of all games of chance to be conducted [961 CMR 4.04(6)(c)].
  5. An admission charge of at least one dollar must be charged for admission to the premises where a Function is to be conducted. Upon payment of the charge, each patron is to receive a sequentially numbered ticket of admission. A duplicate of said sequentially numbered ticket of admission shall be retained by the Licensed Organization. No person who has not paid the admission charge may play any Game of Chance [961 CMR 4.04(5)].

It is important to note that DFSOs are prohibited from allowing minors to participate in any DFS contest, whether or not a prize is offered in that contest [940 CMR 34.04(1)]. DFSOs are also prohibited from permitting entry in DFS contests that include amateur, college, high school, or student sporting events [940 CMR 34.04(3)]. Additionally, DFSOs must not allow their employees, principals, officers, directors, or contractors to play on any DFS contest platform [940 CMR 34.12(1)].

In summary, to offer contests that involve chance-based games in Massachusetts, organizations must meet the requirements outlined in 961 CMR 4.04, and DFSOs must meet the requirements outlined in 940 CMR 34.13 if they have run 1,000 or more Exempt Contests annually for a period of at least two years.

Jurisdiction

Massachusetts