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

Requirements for Offering Contests with Entry Fees in Virginia

In Virginia, it is possible to offer contests that involve entry fees as long as they are conducted for charitable purposes and the organization obtains a permit to conduct charitable gaming [4.1].

To obtain a permit, the organization must complete a department-prescribed application and submit a nonrefundable fee payable to the Treasurer of Virginia in the amount of $200 with the application [4.1]. The permit application process includes a background investigation of the organization, interested persons, or both to ensure public safety and welfare [4.1]. The investigation may include a search of criminal history records for the chief executive officer and chief financial officer of the organization, inquiries into the finances and activities of the organization, and an inquiry as to whether the organization operates in accordance with the provisions of the Charitable Gaming Law or regulations promulgated pursuant thereto [4.1].

It is important to note that contests that involve entry fees for the purpose of promoting or furthering the sale of any product without first obtaining a license to do so from the Director are illegal in Virginia [1.1]. However, fantasy contests conducted in accordance with Virginia law are not considered illegal gambling [3.1].

License Fees

If an organization wishes to become a lottery sales agent in Virginia, they must pay an initial licensing fee up to $100 and an annual license fee up to $70 for each location [2.1].

Voluntary Exclusion Program

Virginia has a voluntary exclusion program that allows individuals to exclude themselves from participating in various forms of gaming, including account-based lottery games, sports betting, casino gaming, charitable gaming, fantasy contests, and horse racing [1.2].

Conclusion

To offer contests that involve entry fees in Virginia, an organization must ensure that the contests are conducted for charitable purposes and obtain a permit to conduct charitable gaming. Additionally, it is important to note that contests that involve entry fees for the purpose of promoting or furthering the sale of any product without first obtaining a license to do so from the Director are illegal in Virginia.

Source(s):
Jurisdiction

Virginia