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

Based on the context documents, it is possible to offer promotional contests of chance (PCOC) that involve free entry in Washington. However, there are specific requirements that must be followed.

Requirements for Promotional Contests of Chance (PCOC)

  • A business must not charge participants a direct or indirect fee to participate in the PCOC. Indirect fees include, but are not limited to, cover charges. [1.1]
  • The PCOC must be operated for no more than a total of three hours per day, twice per week. [1.1]
  • Participants must receive a bingo card immediately before the start of each game. [1.1]
  • The business must award only merchandise items, such as food, nonalcoholic beverages, hats, shirts, or other promotional items valued at less than twenty-five dollars each. The business must not substitute cash prizes for merchandise prizes and 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. [1.1]
  • The business must use recreational bingo cards that are not used in authorized bingo games. [1.1]

Requirements for Raffles

  • Organizations must own the prizes offered to winners before the date of the drawing. However, if the winner has an option to receive a cash prize instead of the merchandise, the organization may enter into a contract to purchase the merchandise prize after the winner chooses his or her option. The organization must have the funds to make the purchase on account before the date of the drawing. [3.1]
  • At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle. The organization must have these funds deposited in the gambling receipts account, if required, or in a recognized Washington state depository authorized to receive funds. The organization must not reduce the balance of funds available from this account below the required amount before awarding the prize(s). [3.1]
  • Raffle prizes must be available at the time and place of the drawing. If cash, they must be United States currency or an equivalent amount of negotiable instruments. For licensees, they must not exceed forty thousand dollars per prize or three hundred thousand dollars in total raffle prizes in a license year, except as authorized in WAC 230-11-067. [3.1]
  • Charitable or nonprofit licensees conducting enhanced raffles must have an independent audit conducted on each enhanced raffle and the associated smaller raffles. [3.2]
  • Electronic raffle licensees must post rules at stationary point of sales locations and on their website. In addition, rules must be made available from ticket sellers. Raffle rules must include at least the following: the cost of each ticket including discount levels, prize calculation including whether expenses are deducted from the prize calculation, time the ticket sales will begin and end, time of the drawing, disclosure stating the participant is not required to be present to win the prize, details of where the winning ticket number will be displayed on the licensee’s website, information about how to claim the electronic raffle prize and any restrictions including the time limit to claim the prize, name of the electronic raffle licensee conducting the raffle, the statement, “If you or someone you know has a gambling problem, call the Washington State Problem Gambling Helpline at 1- 800-547-6133 for confidential help 24 hours a day.”, and any additional information we request. [3.3]
  • The following requirements apply when a credit union organized and operating under state or federal law conducts a raffle: all revenue received from raffles, less prizes and expenses, must be devoted to purposes authorized in RCW 9.46.0209(1); tickets for such raffles can be sold only to, and winners are determined only from among, the regular members of the credit union; all recordkeeping requirements outlined in this chapter must be met; and a license must be obtained if gross revenues from all such raffles held by the credit union during a calendar year exceed five thousand dollars. [3.4]
  • Prior to offering raffle prizes that exceed forty thousand dollars per prize, the licensee must submit a raffle plan to us that includes specific details of the raffle rules, an explanation of how the proceeds from the raffle will be used, a plan to protect the licensee in the event of low ticket sales and other risks, an explanation of how the licensee will purchase the prize(s) for the raffle, a projected budget, and any other information that we request or any information the licensee wishes to submit. [3.5]
  • Licensees may sell multiple tickets to enter one or more drawings as a package if the total price of the package does not exceed twenty-five dollars. Licensees may include tickets to enter a raffle as a part of a package that includes dues, entertainment, or other fund-raising activities if the package discloses the value of each component of the package to the purchaser and the value of each individual raffle ticket does not exceed one hundred dollars. [3.6]

Therefore, it is possible to offer contests that involve free entry in Washington, but the specific requirements for each type of contest must be followed.

Source(s):
Jurisdiction

Washington