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

Based on the context documents, it appears that offering contests with merchandise prizes in Georgia is allowed, but there are certain requirements that must be followed. These requirements include compliance with promotional contests and giveaways provisions, obtaining a license from the sheriff, and maintaining records of the raffle.

According to GACO 16-12-36, a promotional or giveaway contest which conforms with the qualifications of a lawful promotion specified in paragraph (16) of subsection (b) of Code Section 10-1-393 shall not be a lottery. However, all promotions or promotional contests involving an element of chance in the distribution of prizes, gifts, awards, or other items which otherwise meet the definition of a “lottery” in this article shall be included within the definition of the term “lottery” for purposes of this article, unless specifically exempted by some other statute or law ^[2.1].

Additionally, prize proceeds of any lottery prize shall be subject to the Georgia state income tax, and the corporation shall adopt regulations, policies, and procedures to establish a system of verifying the validity of tickets or shares claimed to win prizes and to effect payment of such prizes ^[3.1].

It is recommended to consult with a legal professional to ensure compliance with all applicable laws and regulations.

Source(s):

• [2.1] Lawful promotional and giveaway contests.
• [3.1] Prize proceeds subject to state income tax; attachments, garnishments, or executions; validation of winning tickets; prohibited purchases; money-dispensing machines; unclaimed prize money.

Jurisdiction

Georgia, Georgia

• Gaming