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

Yes, you can offer contests that involve merchandise prizes in Kansas as long as they are not lotteries and comply with the rules for charitable raffles. Here are the requirements:

Requirements for Offering Contests with Merchandise Prizes in Kansas

  1. The contest must not be a lottery. Lotteries are illegal in Kansas [1.1][1.2].
  2. The contest must be a charitable raffle. Charitable raffles are allowed in Kansas, but they must follow certain rules [2.1][2.2].
  3. The contest must not be advertised to minors. The Kansas lottery is prohibited from recruiting minors for advertising or promoting any lottery [1.3].
  4. The contest must comply with all requirements made by the director of revenue under the Kansas retailers’ sales tax act [4.1].

Charitable Raffle Ticket Requirements

Each raffle ticket must contain the following information printed in a clear and legible manner:

  • The name of the licensee as it appears on the raffle license
  • The licensee’s Kansas charitable raffle license number
  • The word “raffle”
  • The date, time, and location of the raffle drawing
  • The price of the raffle ticket
  • A statement specifying whether a participant must be present to win
  • A unique sequential identification number on the raffle ticket and ticket stub that is different from any other number found on a ticket sold for that particular raffle activity
  • Any other information that the administrator requests [2.1].

Each raffle ticket must be offered for the same price as that for every other raffle ticket being sold for the same charitable raffle. Any licensee may offer a discount for the purchase of two or more raffle tickets if the discount is offered to all persons wanting to participate in the charitable raffle. Each raffle ticket to participate in a charitable raffle shall be paid for in advance by cash, check, or credit card. The extension of credit shall be prohibited. The issuance of free raffle tickets shall not be prohibited; however, the value of all free raffle tickets shall be included in the gross receipts derived from the charitable raffle [2.1].

Conclusion

In summary, you can offer contests with merchandise prizes in Kansas as long as they are not lotteries, comply with the rules for charitable raffles, are not advertised to minors, and comply with the Kansas retailers’ sales tax act. The raffle tickets must contain specific information and be sold at the same price as every other raffle ticket.

Source(s):
Jurisdiction

Kansas