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

Requirements for Offering Chance-Based Games in Montana

Montana law allows for promotional games of chance, which are games that involve the disposal or distribution of property among persons who have not paid or are not expected to pay any valuable consideration or who have not purchased or are not expected to purchase any goods or services for a chance to obtain the property [1.1]. However, there are specific requirements that must be met in order to offer such games in Montana.

Bona Fide Promotional Games of Chance

To be considered a bona fide promotional game of chance, a game must meet the following criteria [1.1]:

  • The game must not require any valuable consideration to participate.
  • The game must not be manufactured or intended for purposes of gambling.
  • The game must not simulate any prohibited games, such as banking card games, dice games, sports betting (other than horse racing), or table games.

Approval and Requirements for Devices and Enterprises

Devices, machines, instruments, apparatuses, contrivances, schemes, activities, or enterprises used in promotional games of chance must be approved by the Montana Department and must meet certain requirements [1.1]:

  • The device or enterprise must be submitted for approval to the Department, which will review factors such as the device’s design, intended use, and source of components.
  • The device or enterprise must not be manufactured from already existing or modified gambling devices.
  • The device or enterprise must not incorporate any input mechanism or related components used for monetary value.
  • The device or enterprise must be labeled “No Purchase Required” in a clearly legible typeface.
  • The device or enterprise must be free play, meaning one game after another can be played without any intervention by player or operator.

Payout Limits

Payouts for bona fide promotional games of chance offered by a gambling licensee and/or an on-premises consumption alcoholic beverage licensee are subject to the maximum payout limitation for any single element of the authorized gambling enterprise simulated. Payouts for bona fide promotional games of chance offered by any person or entity that are not a gambling or alcoholic beverage licensee are not limited by the payout limits for the authorized gambling enterprise simulated [1.1].

Specific Games Allowed

Montana law allows for certain amusement games, such as crane games, fish pond (duck pond), hoop or ring toss, and dart games [4.1]. However, these games must meet specific requirements, such as the target area for dart games being capable of being penetrated and of retaining a metal tip dart [4.1].

50/50 Raffles

Only a nonprofit organization, a college, a university, a public school district, or a nonpublic school may sponsor and offer a 50/50 raffle in Montana [2.1]. All 50/50 raffles are subject to certain restrictions, such as the sponsor being responsible for compliance with Montana statutes and regulations, including ARM 23.16.2602, as well as all other applicable state and federal statutes and regulations [2.1].

Carnival Games

Carnival games that are intended to be operated at a fair or carnival may be submitted to the Montana Department for analysis with the purpose of determining if the games meet the requirements of 23-6-102, MCA. No games shall be authorized unless specifically approved by the department following a review of the game and how it is played [3.1]. The department may authorize a game not listed in 23-6-104, MCA, if, after careful review, it can be demonstrated that winning is not contingent upon lot or chance and is based upon the skill of the player as defined under 23-6-104 (2)(h)(xiv), MCA [3.1]. No device, machine, instrument, apparatus, contrivance, scheme, or system which meets the definition of gambling as in 23-5-112, MCA, shall be approved [3.1].

Conclusion

In Montana, it is possible to offer contests that involve chance-based games, but they must meet specific requirements and be approved by the Montana Department. Bona fide promotional games of chance must not require any valuable consideration to participate, must not be manufactured or intended for purposes of gambling, and must not simulate any prohibited games. Devices and enterprises used in promotional games of chance must also meet certain requirements, such as being free play and labeled “No Purchase Required.” Payout limits apply to certain licensees. Certain amusement games are allowed, but they must meet specific requirements. Only nonprofit organizations, colleges, universities, public school districts, or nonpublic schools may sponsor and offer a 50/50 raffle in Montana, and carnival games must be approved by the Montana Department.

Source(s):
Jurisdiction

Montana