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

Yes, you can offer contests that involve chance-based games in South Carolina, but there are specific requirements that must be followed.

According to SCCL 34-45-30, a financial institution authorized to do business in South Carolina under federal or state law may conduct a savings promotion contest in accordance with the provisions of this chapter and this title for the purposes of encouraging its depositors to maintain savings accounts and to increase personal savings.

If you are a nonprofit organization, you may also be qualified to conduct raffles in accordance with the provisions of SCCL 33-57-120. To qualify, the nonprofit organization must be recognized by the South Carolina Department of Revenue and the United States Internal Revenue Service as exempt from federal and state income taxation pursuant to Internal Revenue Code Section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d), or be a class, department, or organization of an educational institution. The organization must also be organized and operated for religious, charitable, scientific, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals.

If you meet these qualifications, you must register with the Secretary pursuant to the requirements of Chapter 56, Title 33, unless you are exempt from or not required to follow the registration requirements of Chapter 56, Title 33, or are a governmental unit or educational institution of this State. Nonprofit organizations that comply with the requirements of Section 33-57-120(A) and intend to operate a raffle must submit an annual raffle form with a fee of fifty dollars to the Secretary. Proceeds from the fees shall be retained by the Secretary for enforcement of these provisions.

It is important to note that there are specific exemptions and limitations for raffles, as outlined in SCCL 33-57-120. For example, raffles operated by a nonprofit organization for charitable purposes, where a noncash prize is donated for the nonprofit raffle and the total value of the prize or prizes offered for a raffle event is not more than nine hundred fifty dollars, are exempt from registration.

However, it is important to be aware that certain games are prohibited in South Carolina, as outlined in SCSR Section 44-140. Additionally, lotteries or raffles of any type whatsoever are unlawful unless authorized by Chapter 150, Title 59, the Education Lottery, Article 24, Chapter 21, Title 12, Charitable Bingo, or Chapter 57, Title 33, Nonprofit Raffles for Charitable Purposes, as outlined in SCCL 33-57-100.

Overall, it is important to carefully review the relevant laws and regulations before offering contests that involve chance-based games in South Carolina.

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Source(s):
Jurisdiction

South Carolina