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

Requirements for Offering Contests Involving Loyalty Programs in Nebraska

Based on the context documents, it appears that contests involving loyalty programs may fall under the Nebraska Bingo Act and Regulations ^[3.2]. However, it is unclear whether such contests would require a bingo license or if they would be exempt.

According to NEAC 316-35-202, a bingo license is required whenever a charge is made to participate or any bingo prize to be awarded exceeds $25 in value. It is possible that contests involving loyalty programs could be considered a form of bingo and therefore require a license. However, this would depend on the specific details of the contest.

NEAC 316-35-212 allows licensed organizations to conduct promotional games and award promotional game prizes at a bingo occasion. A promotional game means a game, scheme, or promotion conducted by a licensed organization at its bingo occasion whereby participation is restricted to bingo players who are present at the bingo occasion, no consideration is charged to participate in the promotional game, other than that charged to play bingo, the winner of a promotional game is determined by an element of chance or by some other factor, except that a winner cannot be determined by using any type of pickle card, the game of keno, a scratch-off or rub-off ticket, a promotional game ticket as authorized in section 9-701 of the Nebraska Revised Statutes, any type of non-telecommunication-related, player-activated electronic or electromechanical facsimile of any game of chance, or by using any type of slot machine, and the winner is present at the bingo occasion ^[3.2].

The total fair market value of promotional game prizes for a regular bingo occasion shall not exceed $100.00. The total fair market value of promotional game prizes for a limited period bingo occasion shall not exceed $250.00 per day for each day of the limited or restricted limited period bingo. For purposes of this regulation, “day” means a calendar day. The total fair market value of promotional game prizes shall not be included when determining the licensed organization’s compliance with the statutory limitation on the value of bingo prizes which may be awarded for a single bingo game or overall at a bingo occasion. A promotional game prize shall not be used to increase the prize amount to be awarded for winning a bingo game. The licensed organization’s cost of promotional game prizes is not subject to the 14 percent of bingo gross receipts limitation on bingo expenses. Real or personal property donated to a licensed organization and awarded as a promotional game prize shall be valued at its fair market value and included in the determination of compliance with the limitation on the value of promotional game prizes which may be awarded in any single bingo game and overall at a bingo occasion. However, the value of such donated prizes shall not be recorded as a bingo expense of the licensed organization. Real or personal property awarded as a promotional game prize shall be valued at its fair market value and, once awarded, shall not be redeemable or convertible into cash directly or indirectly by the licensed organization ^[3.2].

It is recommended that you consult with a legal professional or contact the Nebraska Department of Revenue, Charitable Gaming Division for further guidance on whether a bingo license is required for your specific contest ^[3.2].

Source(s):

• [3.2] PROMOTIONAL GAMES AND

Jurisdiction

Nebraska

• Gaming