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

Offering Contests with Merchandise Prizes in California

Yes, you can offer contests that involve merchandise prizes in California. However, you may need to comply with the state’s raffle regulations. Specifically, you may need to register with the California Department of Justice (DOJ) Nonprofit Raffle Program [2.2].

Requirements for Offering Contests with Merchandise Prizes in California

To offer contests with merchandise prizes in California, you may need to register with the DOJ Nonprofit Raffle Program and comply with the state’s raffle regulations. The electronic raffle system used for the sale of raffle tickets by an eligible organization at a registered event must be certified by an independent gaming test laboratory and must meet standards no less stringent than GLI-31. The eligible organization must also operate the registered event in a manner suitable to protect the public health, safety, and general welfare of the residents of the state [1.3][1.5][2.2].

Additional Requirements

The raffle tickets must be sold at the same price or pursuant to a uniform discounted pricing structure as described in section 2096, subdivision (g), of the California Code of Regulations. The eligible organization may not change raffle ticket prices or the pricing structure once sales of raffle tickets at a registered event have commenced. All raffle tickets for a registered event shall be sold at the same price [1.2].

Conclusion

To offer contests with merchandise prizes in California, you may need to register with the DOJ Nonprofit Raffle Program and comply with the state’s raffle regulations. The electronic raffle system used for the sale of raffle tickets by an eligible organization at a registered event must be certified by an independent gaming test laboratory and must meet standards no less stringent than GLI-31. The eligible organization must also operate the registered event in a manner suitable to protect the public health, safety, and general welfare of the residents of the state. The raffle tickets must be sold at the same price or pursuant to a uniform discounted pricing structure as described in section 2096, subdivision (g), of the California Code of Regulations.

Source(s):
Jurisdiction

California