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Can I offer contests that involve in-game promotions in Georgia? What are the requirements?

To offer contests that involve in-game promotions in Georgia, there are certain requirements that must be met.

Requirements for lawful promotion

According to paragraph (16) of subsection (b) of Code Section 10-1-393, the following qualifications must be met for a promotion to be lawful [1.1]:

  • No purchase or payment is necessary to participate in the promotion.
  • The promotion is not conducted in a manner that is misleading, deceptive, or fraudulent.
  • The rules of the promotion are clearly and conspicuously disclosed to the participants.
  • The terms and conditions of the promotion are not changed after the promotion has begun.
  • The promotion is not conducted in a way that constitutes a lottery.

Restrictions on advertising commercial gambling

It is important to note that advertising commercial gambling is illegal in Georgia [1.2]. Therefore, any advertising related to the in-game promotion must not violate this law.

Licensing requirements

If the promotion involves a raffle, only nonprofit, tax-exempt organizations that are properly licensed pursuant to Code Section 16-12-22.1 shall be allowed to operate raffles [1.3]. The nonprofit, tax-exempt organization must obtain a license from the sheriff authorizing it to operate the raffle, and the license will expire at 12:00 Midnight on December 31 following the granting of the license [1.3]. The application for a license and each application for renewal of a license shall contain specific information, including the name and home address of the applicant, the names and home addresses of each of the persons who will be operating, advertising, or promoting the raffle, and a determination letter from the Internal Revenue Service certifying that the applicant is an organization exempt under federal tax law [1.3].

Bingo licensing requirements

If the promotion involves bingo games, the nonprofit tax-exempt organization shall submit a license application to the Georgia Bureau of Investigation on forms prescribed by the Bureau [2.1]. In addition to any information required in the prescribed application, the Director may require any additional information reasonable and necessary to make a determination as to whether a license should be issued [2.1]. Each application for a license and each application for renewal of a license must be accompanied by, but not limited to, the following [2.1]:

  • An annual fee of $100 must be paid prior to the issuance of any new bingo license or before any existing license will be renewed.
  • A determination letter from the Internal Revenue Service certifying that the applicant is an exempt organization under Federal Income Tax Law.
  • A determination letter from the Georgia Department of Revenue certifying that the applicant is exempt under income tax laws of the State of Georgia.
  • The organization’s sales tax registration number from the Georgia Department of Revenue.
  • A certified copy of the current incorporation papers, charter and other such documents indicating the date the organization originated.
  • A copy of the applicant’s current constitution and/or by laws.
  • A statement as to the location where the applicant will conduct bingo games; if the premises where games are to be conducted is leased, a copy of the current lease or rental agreement; the days and times bingo games will be conducted.
  • A copy of the purchase or lease contract for the bingo equipment to be used by the applicant, or a statement of ownership of the equipment.
  • A current financial statement of the applicant organization as of the date of application.
  • A statement of the source of funds to be used in the initial development of the bingo operation and if any improvements are made on the premises where the bingo operation is to be conducted, the source of those funds.
  • The names and addresses of any persons, organizations or other legal entities that will act as surety for the applicant or to whom the applicant is financially indebted, or to whom any financial obligation is owed by the applicant.
  • A photograph, a fingerprint card and personal history and background statement on forms provided by the Georgia Bureau of Investigation of all persons who are establishing, or will be promoting, advertising, or operating the bingo games, and if the applicant is a corporation, association or other similar legal entity, the names and home addresses, a photograph, a fingerprint card, and a personal history and background statement on the aforementioned forms of all the directors/officers of the organization and any other person associated in any way with the applicant’s bingo operation.
  • A statement showing the convictions, pleas of guilty, and nolo contendere, if any, for criminal offenses, other than minor traffic offenses, for all directors/officers of the organization and for all persons establishing, promoting, advertising or operating the bingo game.
  • A current certificate from the Fire Marshal showing the authorized number of occupants permitted on the premises where bingo is to be operated. The Fire Marshal’s certificate must be posted in a conspicuous place on the premises.
  • A current membership list of the applicant organization as of the date of application.

In conclusion, to offer contests that involve in-game promotions in Georgia, the promotion must conform with the qualifications of a lawful promotion specified in paragraph (16) of subsection (b) of Code Section 10-1-393. If the promotion involves a raffle or bingo games, the nonprofit, tax-exempt organization must obtain a license from the sheriff or the Georgia Bureau of Investigation, respectively, and comply with the licensing requirements.

Source(s):
Jurisdiction

Georgia, Georgia