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Can I offer contests that involve entry fees in North Dakota? What are the requirements?

Yes, you can offer contests that involve entry fees in North Dakota, but there are certain requirements that must be met.

Fishing Contests

To hold a fishing contest, only nonprofit veterans, charitable, education, religious, and fraternal organizations, civic and service clubs, and public-spirited organizations, as those organizations are defined in North Dakota Century Code chapter 53-06.1 will be issued permits to hold fishing contests [1.1]. Any organization desiring to hold a fishing contest must submit an application for a permit to the game and fish director at least thirty days prior to the start of the contest. Information on the application must include the name of the sponsor, location of the waters where the contest is to be held, the dates of the contest, the number of participants expected for the contest, the amount of the entry fee, identification of the intended fishery conservation or public access project, a copy of the tournament regulations, and the name of a person or persons responsible for organizing and conducting the fishing contest [1.3].

A minimum of seventy-five percent of any entry or participation fee paid by the contestants for fishing activities must be returned to the contestants as cash or merchandise (must be cash equivalent and cannot include donated merchandise when an entry fee is required). Payback procedures must be stated in the tournament rules and regulations. A minimum of ten percent of the gross proceeds from entry or participation fees is required to be paid as a conservation fee. Contests with no entry fee, but still subject to regulations as defined in subsection 2 of section 30-03-05-01, are required to submit a ten thousand dollar conservation fee unless there is no cash payout associated with the contest, i.e., all prizes are donated merchandise. The conservation fees must be expended on fishery conservation projects or for providing public access to fishing areas and the intended project must be identified on the permit application form. Moneys for fishery conservation or public access projects must be allocated within ninety days after the completion of the tournament. The fishery conservation projects and public access projects must be approved by the game and fish director. The tournament applicant may retain a maximum of fifteen percent of the gross proceeds from entry or participation fees for expenses incurred in putting on the contest [1.4].

Raffles

For raffles, an organization may sell several tickets or sell tickets in advance of a special event to a person at a discount. A discounted ticket must be specifically designated as a discounted ticket on the ticket and its stub. The number of discounted tickets must be predetermined and separately issued and accounted for when issued to a ticket seller. A raffle ticket must have a detachable stub that is consecutively numbered. A raffle ticket stub must have a duplicate number corresponding to the number on the ticket and contain the player’s name, address, and telephone number, or email address, except when double roll tickets are used. A ticket must be issued, as a receipt, to a player. An organization may not allow a raffle ticket seller to retain a ticket for free or retain any portion of the price of a ticket as compensation, and may not compensate the seller a certain amount or provide a gift for selling a winning ticket. An organization may provide a raffle ticket seller a fixed amount for selling the most or a certain number of tickets. No raffle ticket can be resold [2.2].

Prize Restrictions and Requirements

Prizes must only be cash and must be fifty percent or more of gross proceeds for each single event raffle. However, a single cash prize may not exceed twenty-five thousand dollars and the total cash prizes may not exceed twenty-five thousand dollars during a day [3.1].

Reporting Requirements

Within thirty days after completion of the fishing contest, the permittee shall submit a report to the game and fish director. The report must include the number of contest participants, the quantity (number and total weight) and species of fish taken in the contest, the gross and net proceeds for the tournament, the percentage of the entry fees paid back to the participants as prizes, and suggested conservation projects for departmental approval. Failure to submit this report is justification for denial of future fishing contest permits. Moneys for fishing conservation or public access projects must be allocated within ninety days after the completion of the tournament [1.6].

In summary, to offer contests that involve entry fees in North Dakota, you must be a nonprofit organization and follow the regulations set forth by the North Dakota game and fish department or the North Dakota Century Code chapter 53-06.1. For fishing contests, you must submit an application for a permit, return a minimum of seventy-five percent of any entry or participation fee paid by the contestants as cash or merchandise, and pay a minimum of ten percent of the gross proceeds from entry or participation fees as a conservation fee. For raffles, prizes must only be cash and must be fifty percent or more of gross proceeds for each single event raffle. Additionally, you must submit a report to the game and fish director within thirty days after completion of the fishing contest.

Source(s):
Jurisdiction

North Dakota