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

Here is the information you need to know:

Requirements for contests with entry fees in Washington

In Washington, contests that involve entry fees are allowed, but they must comply with certain requirements. These requirements include:

  • For promotional contests of chance similar to bingo, businesses must not charge participants a direct or indirect fee to participate in the contest. Indirect fees include cover charges. The contest must be operated for no more than a total of three hours per day, twice per week. Participants must receive a bingo card immediately before the start of each game. The business must award only merchandise items valued at less than twenty-five dollars each, and must not substitute cash prizes for merchandise prizes. The business must not award prizes worth more than one hundred dollars per week or five thousand dollars per year. The business must record the names of winners and prize(s) won for each game. The business must use recreational bingo cards that are not used in authorized bingo games. [2.1]
  • For raffles, the organization must be a bona fide charitable or nonprofit organization. The fees for raffles are $65 for the annual license fee and 3.38% of gross gambling receipts up to a maximum annual license fee of $2,000. Enhanced raffles have a $5,000 base license fee and a 0.43% gross gambling receipts rate up to a maximum annual license fee of $32,000. [3.3]
  • If the contest is not a raffle and the organization is not a bona fide charitable or nonprofit organization, the fees vary depending on the type of license or permit. For example, call centers for enhanced raffles have a base license fee of $4,800, while major sports wagering vendors have a base license fee of $65,000. [3.4]
  • Class 1 racing associations may conduct horse race handicapping contests. The commission shall establish rules for the conduct of handicapping contests involving the outcome of multiple horse races. [1.1]
  • The director has the authority to conduct promotional contests of chance for the enhancement of ticket sales. [4.1]
  • Bona fide charitable and nonprofit organizations must pay fees when applying for gambling licenses, permits, miscellaneous changes, or inspection services. The fees vary depending on the type of license or permit. [3.2]

Based on the information provided, it appears that you can offer contests that involve entry fees in Washington as long as you comply with the requirements outlined above.

Source(s):
Jurisdiction

Washington