Can I offer contests that involve merchandise prizes in Arizona? What are the requirements?

Based on the context documents, you can offer contests that involve merchandise prizes in Arizona, but there are certain requirements that must be followed.

Requirements for Offering Contests with Merchandise Prizes in Arizona

According to AZAC Title 3, Chapter 12, Article 3, Section 3, R3-12-303, concessionaires are prohibited from offering certain types of merchandise prizes, including weapons, fireworks, handcuffs, melted glass bottles, and drugs. Additionally, an Arizona State Fair Games Inspector may prohibit other prizes based on safety, legality, or value.

Procedure for Claiming Prizes

If the prize is up to and including $599, the claimant can present the ticket or other Lottery-approved proof of game purchase to any participating licensed Lottery retailer or to a Lottery office, or mail the ticket to a Lottery office for validation, according to AZAC Title 19, Chapter 3, Article 4, Section 8, R19-3-408. The licensed retailer shall pay a winner a prize up to and including $100 and may pay a winner a prize up to and including $599 provided that all applicable ticket validation criteria in this chapter has been satisfied and a proper validation slip, which is an authorization to pay, has been issued by the terminal.

If the prize is not validated or authorized to be paid by the retailer, including all prizes of $600 or more, the claimant shall submit a claim form, available from any retailer and online, and the ticket to the Lottery. If the claim is verified and validated by the Lottery as a winning ticket, the Lottery shall make payment of the amount due to the claimant, less any authorized debt set-off amounts and/or withheld taxes. If the claim is denied by the Lottery, the claimant shall be notified within 15 days from the day the claim is received in the Lottery office.

Prize Validation and Payment

According to R19-3-215, AZAC Title 19, Chapter 3, Article 2, Section 15, a licensed retailer shall provide prize validation and payment services for instant scratch tickets or on-line tickets to any Lottery claimant regardless of where the ticket was purchased to be eligible for the highest sales commission compensation rate. A licensed retailer shall pay all winning prizes for instant scratch tickets or draw game tickets up to and including $100, and may pay all winning prizes from $101 up to and including $599. For prizes over $600, a licensed retailer with a Redemption Agent endorsement shall determine, through the Lottery provided equipment, and prior to paying the prize, whether the holder of a winning lottery ticket is subject to Arizona debt set-off requirements under A.R.S. § 5-575.

Posting Prizes and Game Standards

According to R3-12-302, AZAC Title 3, Chapter 12, Article 3, Section 2, a concessionaire shall conspicuously post, during all times of operation, a sign stating the price of the game, clear game instructions and standards, and the exact task the player is required to complete to win the designated prize.

Conclusion

You can offer contests that involve merchandise prizes in Arizona, but you must follow the requirements outlined in AZAC Title 3, Chapter 12, Article 3, Section 3, R3-12-303. Additionally, prize validation and payment must be done in accordance with AZAC Title 19, Chapter 3, Article 4, Section 8, R19-3-408 and R19-3-215. Concessionaires must also post the price of the game, clear game instructions and standards, and the exact task the player is required to complete to win the designated prize, according to R3-12-302, AZAC Title 3, Chapter 12, Article 3, Section 2.

Jurisdiction

Arizona

• Gaming