Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

Based on the information provided in the context documents, it is unclear whether in-game promotions would be considered a form of lottery or raffle under South Carolina law. However, it is legal to conduct savings promotion contests in South Carolina as long as the financial institution conducting the contest is authorized to do business in the state and follows the provisions outlined in SCCL 34-45-30 [1.1].

Lotteries or raffles of any type are generally unlawful in South Carolina unless authorized by specific legislation [3.1]. Nonprofit organizations are allowed to operate up to four raffles per year, and each raffle must continue for no more than nine months from the date the first raffle ticket is sold. No raffle drawing shall be conducted between the hours of midnight and 10 a.m. [3.3]. Additionally, no less than ninety percent of the net receipts of a raffle must be used for the charitable purpose of the nonprofit organization, and no receipts of a raffle shall be used for any expenditure or activity which would subject an organization exempt from taxation under Internal Revenue Code Section 501(c)(3) or its managers to revocation of its tax-exempt status or excise taxes under the Internal Revenue Code [3.4].

The South Carolina Lottery Commission may enter into a multi-state agreement for the sale of instant game tickets, online game tickets, and related multi-state lottery products including game shows and promotional products [2.1]. However, games prohibited by Sections 59-150-20(7), 12-21-2710, 16-19-40 and 16-19-50 are not allowed [4.1].

To offer contests that involve in-game promotions in South Carolina, it is recommended that you consult with a legal professional to determine the specific requirements and legality.

References:

  • SCCL 34-45-30 [1.1]
  • Lotteries or raffles of any type are generally unlawful in South Carolina unless authorized by specific legislation [3.1]
  • Nonprofit organizations are allowed to operate up to four raffles per year [3.3]
  • No less than ninety percent of the net receipts of a raffle must be used for the charitable purpose of the nonprofit organization [3.4]
  • The South Carolina Lottery Commission may enter into a multi-state agreement for the sale of instant game tickets, online game tickets, and related multi-state lottery products including game shows and promotional products [2.1]
  • Games prohibited by Sections 59-150-20(7), 12-21-2710, 16-19-40 and 16-19-50 are not allowed [4.1]
Source(s):
Jurisdiction

South Carolina