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

Yes, you can offer contests that involve chance-based games in North Dakota, but there are specific requirements that must be followed. Here are the requirements:

Requirements for Contests Involving Chance-Based Games in North Dakota

Contests that involve chance-based games in North Dakota are regulated by the North Dakota Administrative Code (NDAC) Section 99-01.3-05-03 and Section 99-01.3-05.1-03. The following are the requirements for offering contests that involve chance-based games in North Dakota:

  1. Prizes must be an item that may be legally owned and possessed and has a value or a right to a free service. No prize may be real estate, ticket for entry into another raffle, or live animal except for beef or dairy cattle, horse, bison, sheep, or pig [1.1].
  2. Cash or merchandise prizes may be awarded. A cash prize may be based on a percentage of gross proceeds. However, a single cash prize cannot exceed twenty-five thousand dollars and the total cash prizes cannot exceed twenty-five thousand dollars during a day [1.1][1.2].
  3. A licensed organization may exchange a merchandise prize valued at not more than twenty-five thousand dollars for a cash prize on not more than two occasions per year [1.1].
  4. An organization shall own, have a contract to acquire, or be able to obtain a merchandise prize before offering a merchandise prize in a drawing [1.1].
  5. A prize winner must be drawn on the date and at the location indicated on a bearer ticket. The winning draw number must be selected from all sold draw numbers from the current single event raffle drawing [1.2].
  6. The organization shall post or publish by a public means, the winning draw number and where the prize may be claimed. A winning player need not be present when a drawing is held but shall claim the prize within five business days [1.2].
  7. An organization may not accept, and a recipient or potential recipient of net proceeds may not give or offer to give, a payment, gift, service, loan, personal or real property, or other thing of material value, for disbursing or receiving net proceeds [1.3].
  8. A disbursement of net proceeds must be specific as to recipient and use. After an organization disburses net proceeds, it may not interfere with a recipient’s control of the funds or attempt to own or influence the use or sale of personal or real property bought by or for a recipient of the funds [1.3].

Additional Requirements

In addition to the above requirements, there are other requirements that must be followed when offering contests that involve chance-based games in North Dakota. These include:

  • Only members, volunteers, or employees of a licensed organization or an organization that has a permit may manage, control, or conduct any game [2.1].
  • Gaming equipment must be procured only from a licensed distributor, and no equipment or prizes may be purchased at an excessive price [2.1].
  • A manufacturer that sells or provides paper bingo cards to a distributor shall print its name or distinctive logo and the assigned serial number and series number (card number) on each card [1.4].
  • An officer, director, shareholder, agent, or employee of a manufacturer may not play a game of pull tabs, including electronic pull tabs, club special, tip board, prize board, seal board, sports-pool board, punchboard, or electronic quick shot bingo, of that manufacturer, at any site [1.4].

Conclusion

In summary, contests that involve chance-based games in North Dakota are allowed, but there are specific requirements that must be followed. Prizes must be an item that may be legally owned and possessed and has a value or a right to a free service. Cash or merchandise prizes may be awarded, but there are limits on the amount of cash prizes that can be awarded. An organization must also follow specific rules regarding the disbursement of net proceeds. Additionally, only members, volunteers, or employees of a licensed organization or an organization that has a permit may manage, control, or conduct any game, and gaming equipment must be procured only from a licensed distributor.

Source(s):
Jurisdiction

North Dakota