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

Yes, you can offer contests that involve chance-based games in Texas, but there are certain requirements that must be met.

Contests Involving Chance-Based Games

In Texas, a game of chance is defined as a game or contest that awards a prize and whose outcome is determined, at least in part, by the element of chance or luck [1.1]. A person may not conduct or allow a game of chance at a bingo premises during a bingo occasion at the premises, except as otherwise provided in subsection (c) of this section [1.1]. However, the following games of chance may be conducted or allowed during a bingo occasion: charitable bingo conducted under Chapter 2001 of the Occupations Code, door prize game conducted under §2001.420(c) of the Occupations Code, charitable raffle conducted under Chapter 2002 of the Occupations Code, and amusement machines that are not gambling devices as defined in §47.01 of the Penal Code [1.1].

A game of chance, other than bingo conducted under Chapter 2001 of the Occupations Code, a charitable raffle conducted under Chapter 2002 of the Occupations Code, and a door prize game conducted under §2001.420(c) of the Occupations Code, may not award bingo equipment or entry into a bingo game as a prize [1.1].

Requirements for Contests Other Than Drawings

For each contest other than a drawing, the offeror shall maintain until the second anniversary of the date the last prize was awarded: records of the identity and address of each person who is responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program; records that show that the winning numbers have been deposited in the mail or otherwise made available to recipients in accordance with the odds statement provided under Section 621.104(a); a copy of each contest solicitation; records adequate to determine the name and address of each contestant, the approximate date each contestant was sent the solicitation used in the contest, the number of major prizes awarded, the date each major prize was awarded, the name, brand, type, model number, and manufacturer of each prize offered, the method of computing the retail value of each prize, the method of selecting major prize winners, the name and address of each major prize winner, and the facts on which each representation or disclosure made in connection with the contest was based and from which the validity of the representation or disclosure can be determined [2.2].

Requirements for Matched Contests

A person who uses a matched contest shall clearly and conspicuously disclose in writing in the offer: that attendance at a sales presentation is required, the name and street address of the person who is soliciting attendance at a sales presentation, a description of the product or service being sold, each requirement, restriction, qualification, and other condition that must be satisfied for a person to enter the contest, including any deadline by which the person must visit the location or attend the sales presentation to qualify to receive a prize and the approximate duration of the sales presentation, a statement of the odds of winning each prize offered, expressed as a ratio in Arabic numerals, the geographical area or states in which the contest will be conducted, the beginning and ending dates of the contest period, the identity and address of each person responsible for awarding prizes, that all unclaimed prizes will be awarded by a drawing and the date of the drawing, and all other rules and terms of the contest [3.2].

A person engaged in the preparation, promotion, sale, distribution, or use of a matched contest shall disclose the retail value of a prize and clearly and conspicuously in at least 10-point type that airfare, lodging, or both are not included as part of a prize that is a trip or recreational activity to the extent that either or both are not included [3.2].

Requirements for Drawings

For each drawing, the offeror shall maintain until the second anniversary of the date the last major prize was awarded: records of the identity and address of each person who is responsible for developing, creating, sponsoring, or implementing any part of the advertising plan or program, records that show that the winning entry for each major prize was selected entirely at random from all of the entries received, a copy of each contest solicitation, and records adequate to determine the total number of entries, the number of major prizes awarded, the date each major prize was awarded, the name, brand, type, model number, and manufacturer of each prize offered, the method of computing the retail value of each prize, the method of selecting winners, and the names and addresses of the winners [2.4].

Using Game Piece to Convey Information or Offer to Enter

A person conducting a sweepstakes may not convey information about the sweepstakes or an offer to enter the sweepstakes by using a scratch-off device or any other game piece that suggests an element of chance or luck [2.1].

Conclusion

In summary, you can offer contests that involve chance-based games in Texas, but there are specific requirements that must be met. For contests other than drawings, offerors must maintain records of various aspects of the contest. For matched contests, offerors must disclose specific information in writing. For drawings, offerors must maintain records of various aspects of the drawing. Additionally, using a game piece to convey information or offer to enter a sweepstakes is not allowed.

Source(s):
Jurisdiction

Texas