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Can I offer contests that involve loyalty programs in Alabama? What are the requirements?

Based on the provided context documents, it appears that offering contests that involve loyalty programs in Alabama is not explicitly addressed. However, there are regulations in place for fantasy contests and savings promotion contests.

Requirements for Fantasy Contests

If you plan to operate a fantasy contest with an entry fee in Alabama, you must implement commercially reasonable procedures that are intended to accomplish the following [1.1]:

  • Prevent the fantasy contest operator, employees of the fantasy contest operator, and relatives living in the same household as the employees, from competing in any public fantasy contest offered by any fantasy contest operator in which the operator offers a cash prize to the general public.
  • Prevent sharing of confidential information that could affect fantasy contest play with third parties until information is made publicly available.
  • Verify that a fantasy contest player in a fantasy contest is 19 years of age or older.
  • Prevent the fantasy contest operator from offering contests based on the performances of participants in high school or youth athletic events.
  • Prevent the fantasy contest operator from offering a fantasy contest open to the general public that does not establish and make known all prizes and awards offered to winning participants in advance of the game or contest.
  • Provide that no winning outcome is based on the score, point spread, or any performance of any single actual sports team or combination of teams or solely on any single performance of an individual athlete or participant in any single actual event.
  • Ensure that an individual who is a player in a real-world game or sporting event is restricted from participating in a fantasy contest that is determined, in whole or in part, on the accumulated statistical results of that player, the player’s real-world team, or the sport or competition for which he or she is a player.
  • Allow individuals to restrict themselves from entering a fantasy contest upon request and provide reasonable steps to prevent the person from entering fantasy contests offered by the fantasy contest operator.
  • Disclose the number of entries that a fantasy contest player may submit to each fantasy contest and provide reasonable steps to prevent players from submitting more than the allowable number.
  • Segregate fantasy contest player funds from operational funds or maintain a reserve that equals or exceeds the amount of player funds on deposit, which reserve may not be used for operational activities.
  • Contract with a third party to annually perform an independent audit, consistent with the standards established by the American Institute of Certified Public Accountants, to ensure compliance with this chapter and shall submit the results of the audit to the regulator within 270 days of the end of the operator’s fiscal year.
  • Not target minors or other excluded players in any advertising.

Requirements for Savings Promotion Contests

If you plan to operate a savings promotion contest in Alabama, you must comply with the following [3.1][3.2]:

  • The contest must not require individuals to pay consideration for a chance to win a prize, and the individual maintains ownership of the money that is deposited into a savings account or other qualifying account.
  • The prizes are funded through the interest that accrues across the pool of savings accounts participating in the promotion contest.
  • No prize or award shall exceed twelve thousand five hundred dollars ($12,500).

Based on the provided context documents, there are no specific regulations for contests that involve loyalty programs in Alabama. However, it is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

Alabama