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

Yes, it is possible to offer contests that involve loyalty programs in New York, but there are certain requirements that must be met.

Requirements for Offering Contests in New York

To offer contests in New York, the operator must be registered with the commission pursuant to section fourteen hundred three of the NYCL PML § 1402 [1.3]. The commission shall establish a process for renewal, and registrations issued by the commission shall remain in effect for three years [1.3].

The contests must be interactive fantasy sports contests registered and conducted pursuant to the provisions of NYCL PML § 1411 [1.1][1.2].

Requirements for Sales Incentive Programs

If the contests involve sales incentive programs, they must conform to the requirements set forth by the Liquor Authority in 9 NYCRR 94.3 [3.1]. The following are the requirements:

  • All licensed beer wholesalers participating in the sales incentive program shall have been advised in writing before the commencement of such program of all the provisions thereof, including the amount or nature of each prize, bonus, premium, award or other thing of value, and the terms on which the same will be awarded.
  • The maximum aggregate dollar value of all prizes, bonuses, premiums, awards and other things of value which is offered or given in any calendar year in all sales incentive programs relating to any single brand of beer does not exceed the greater of (1) five cents times the highest number of barrels (i.e., 31 gallon containers) of such beer sold in this State by such supplier during any one of the three preceding calendar years or (2) $25,000.
  • The maximum dollar value of any single prize, bonus, premium, award or other thing of value does not exceed $1500.
  • No more than three sales incentive programs with respect to any single brand of beer are conducted during any calendar year.
  • No licensed beer wholesaler directly or indirectly bears more than 25 percent of the costs of any sales incentive program.
  • No licensed beer wholesaler participates in or receives any prize, bonus, premium, award or other thing of value in connection with a sales incentive program unless 50 percent or more of the gross beer sales of such licensed beer wholesaler during the preceding calendar year were sales to New York licensees.

Conclusion

In summary, to offer contests that involve loyalty programs in New York, the operator must be registered with the commission and the contests must be interactive fantasy sports contests registered and conducted pursuant to the provisions of NYCL PML § 1411. If the contests involve sales incentive programs, they must conform to the requirements set forth by the Liquor Authority in 9 NYCRR 94.3 [3.1].

Source(s):
Jurisdiction

New York