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Can I offer contests that involve charity donations in Maine? What are the requirements?
Based on the documents provided, there are no specific requirements or restrictions on offering contests that involve charity donations in Maine. However, fantasy contest operators licensed under Maine law are required to comply with certain regulations related to the operation of fantasy contests and allocation of funds.
According to 8 MERS Section 1105, fantasy contest operators licensed under Maine law are required to disclose the number of entries that a fantasy contestant may submit to each fantasy contest and provide reasonable steps to prevent fantasy contestants from submitting more than the allowable number. They are also required to inform fantasy contestants of state and federal tax obligations on certain winnings. Additionally, the director shall collect for deposit to the General Fund 10% of gross fantasy contest revenues, including any revenues earned while operating pending approval of an application submitted to the director as described in section 1103, subsection 9, from a fantasy contest operator licensed under this chapter that has gross fantasy contest revenues of $100,000 or greater.
Furthermore, under 16-633 MECM Ch. 40, fantasy contest operators are required to maintain a reserve account that exceeds the amount of entry fees and any other funds on deposit. The reserve may not be used for operational activities. Reserve funds may take the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond or any combination thereof, and must be in an amount that exceeds the total balances of the fantasy contestants’ accounts with the fantasy contest operator.
In summary, while there are no specific requirements or restrictions on offering contests that involve charity donations in Maine, fantasy contest operators licensed under Maine law are required to comply with certain regulations related to the operation of fantasy contests and allocation of funds. [1.2][4.1]
Source(s):
Jurisdiction
Maine