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

Requirements for Offering Contests in Arkansas

Based on the provided context documents, it is possible to offer contests that involve loyalty programs in Arkansas. However, there are certain requirements that must be met.

Requirements for Obtaining a Retailer License

If the contests are to be offered through a retail location, the retailer must obtain a license from the Arkansas Lottery Commission (ALC) [2.2]. The application process requires the submission of relevant information about the applicant and the sales location, including financial information, ownership details, and agreements related to the sales location [2.2]. The Director of the ALC may require any degree or type of disclosure necessary to assure the security and integrity of the lottery [2.2]. The Director will consider the applicant’s financial responsibility, security of the place of business, accessibility to the public, integrity, and reputation when making a determination regarding a licensing application [2.2].

Requirements for Offering Contests

There are no specific requirements for offering contests that involve loyalty programs in Arkansas. However, if the contests involve a lottery, they must comply with the regulations set forth by the Arkansas Lottery Commission [1.1]. Vendors who submit bids, proposals, or offers to perform a major procurement contract must disclose information about their financial responsibility, security, and integrity [1.1]. The Director of the Office of the Arkansas Lottery may require any degree or type of disclosure necessary to allow for a full and complete evaluation of the competence, integrity, background, and character of a vendor for a major procurement contract [1.1].

Retailer Prohibitions

Retailers offering contests in Arkansas must comply with certain prohibitions set forth by the Arkansas Lottery Commission [2.1]. For example, tickets and shares may only be sold by the retailer at the location address stated on the retailer license issued by the ALC [2.1]. Tickets may not be sold for more or less than the amount set by the ALC [2.1]. Retailers may not induce persons to play lottery games by extending credit or by providing financial assistance, alcohol, or any other compensation [2.1]. Retailers must not conduct false or misleading advertising, in any form about the ALC or lottery games [2.1].

Conclusion

To offer contests that involve loyalty programs in Arkansas, retailers must obtain a license from the Arkansas Lottery Commission and comply with the regulations set forth by the Commission. There are no specific requirements for offering contests, but vendors who submit bids for major procurement contracts must disclose information about their financial responsibility, security, and integrity. Retailers must also comply with certain prohibitions set forth by the Arkansas Lottery Commission.

Source(s):
Jurisdiction

Arkansas