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

Here are the requirements for offering contests that involve merchandise prizes in Michigan:

Licensing Requirements

According to MIAC R 432.21503, a qualified organization applying for a raffle license shall meet the requirements of R 432.21204.

Raffle Ticket Requirements

All raffle tickets, except those used for in-house raffles, shall contain at a minimum the following information printed in a clear and legible manner:

• The name of the licensee.
• The license number.
• The word “raffle.”
• The date, time, and location of the drawing.
• The price of the raffle ticket.
• A unique sequential identification number on the raffle ticket and ticket stub.
• The top prize or other information as directed by the bureau.
• The stub of the ticket retained by the licensee shall contain a space for the purchaser’s name, address, and phone number.

The use of the terms “lotto” or “lottery” is prohibited on raffle tickets. A raffle ticket shall not be used that requires the removal of a covering material to determine if a ticket is a winner or is eligible to be a winner. (MIAC R 432.21506)

Raffle Prizes

All prizes shall be awarded. A winner need not be present to win except as provided by R 432.21511. The licensee shall make a diligent effort to locate the winners of all prizes. A prize shall not be forfeited to the licensee. Except for a raffle conducted under R 432.21511, any prize not claimed or for which the winner cannot be located within 60 days from the date of the raffle shall be distributed in accordance with one of the following methods:

• The licensee shall conduct another drawing using the original pool of ticket stubs
• With prior written approval of the bureau, the licensee shall donate the prizes to a nonprofit organization with a charitable purpose as prescribed by R 432.21101(1)(b). (MIAC R 432.21515)

Merchandise Prizes

Prizes in a single game may be paid in steps, however, the value of prizes shall not exceed the total amount set by the act for a single game. The value of donated prizes shall be their total retail value. A merchandise prize may be offered with a cash equivalent option. (MIAC R 432.21325)

Conclusion

Based on the above requirements, it is possible to offer contests that involve merchandise prizes in Michigan. However, the organization must comply with the licensing and raffle ticket requirements, and ensure that all prizes are awarded and distributed in accordance with the regulations.

Jurisdiction

Michigan

• Gaming