Ask Reggi Your Question Now

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

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

Loyalty Programs and Contests in Nevada

Nevada law does not have specific provisions regarding contests that involve loyalty programs. However, there are general laws that may apply to such contests.

According to NRS 463.362, a person must obtain a license from the Nevada Gaming Commission to operate a game of chance or a gambling game. A game of chance is defined as a game where the outcome is determined by chance, such as a slot machine or a lottery. A gambling game is defined as a game where the outcome is determined by skill, such as poker or blackjack.

If a contest involving a loyalty program is considered a game of chance or a gambling game, then a license may be required to operate it in Nevada. However, if the contest is based solely on skill, then a license may not be required.

Requirements for Obtaining a License

If a license is required to operate a contest involving a loyalty program, the following requirements must be met:

  • The person or entity must maintain an office in Nevada [1.1].
  • The person or entity must pay the fee required for the issuance of a license [1.1].
  • The person or entity must comply with any other requirements set forth by regulations adopted by the Division [1.1].
  • The person or entity must submit to the Division the required information on a form provided by the Division, including the applicant’s name, business address and telephone number, the name under which the applicant will hold the money or other property of a client, the names, residence and business addresses of all shareholders or members who hold 10 percent or more of the voting stock of the applicant’s business and all persons having an interest in the business as principals, partners, officers, trustees or directors, specifying the capacity and title of each, the length of time the applicant has been engaged in the business of acting as an exchange facilitator, a summary description of the business of the applicant, a list of any similar licenses obtained and maintained in other states or other jurisdiction and information regarding revocation of any such license, the tax identification number of the applicant, and a current certificate of good standing for the applicant from the state or other jurisdiction in which the applicant’s business is formed [1.2].
  • Each applicant must arrange to have taken, by a law enforcement agency or other authorized entity acceptable to the Division, a complete set of the applicant’s fingerprints and the fingerprints of each person or officer who will be conducting the business of the applicant in this State and who has authority to transfer exchange money held by the applicant. The applicant must submit to the Division a completed fingerprint card and written permission authorizing the Division to submit the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the background of each person whose fingerprints were taken and to such other law enforcement agencies as the Division deems necessary [1.2].
  • The Division shall approve an application submitted pursuant to this section within 45 days after the submission of the completed application, any additional information required by the Division and proof satisfactory to the Division that the applicant has complied with the provisions of NRS 645G.320. Upon approval of an application, the Division shall issue a license to the applicant [1.2].

Conclusion

Nevada law does not have specific provisions regarding contests that involve loyalty programs. However, if the contest is considered a game of chance or a gambling game, a license may be required to operate it in Nevada. The person or entity must meet the requirements set forth by regulations adopted by the Division and obtain a license from the Nevada Gaming Commission if necessary.

Source(s):
Jurisdiction

Nevada