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Can I offer contests that involve merchandise prizes in Minnesota? What are the requirements?
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Contests with Merchandise Prizes in Minnesota
Yes, you can offer contests that involve merchandise prizes in Minnesota. However, if you plan to offer contests with merchandise prizes, you may need to comply with the state’s raffle regulations [3.1].
Raffle Requirements in Minnesota
If you plan to offer a raffle, you must comply with the following requirements [3.1]:
- Raffle tickets must have a detachable section and both parts must be sequentially numbered, starting with the number “1” and continuing through the maximum number of tickets to be sold.
- The detachable section must contain spaces for the purchaser’s name, address, and telephone number.
- The following information must be printed on each ticket: organization name and license or exemption number, date, time, and location of the selection or determination of winning entries, sequential number of the ticket, ticket price, and at a minimum the three most valuable prizes to be awarded, including a statement regarding the winner’s responsibility for any applicable fees or taxes.
- Raffle tickets must not contain the words “suggested donation” or any other implied request for money, other than the price printed on the raffle ticket.
- All raffle tickets must be the same size, shape, and thickness.
Additionally, if you plan to offer multiple pricing levels of raffle tickets, you must comply with the following requirements [3.1]:
- Each price level of tickets must have a separate set of sequentially numbered tickets starting with number “1” through the maximum number of tickets to be sold at that price level.
- Each set of tickets must be clearly identifiable from other tickets for the same raffle sold at a different price level.
- All raffle tickets must be the same size, shape, and thickness.
Posting of Information and House Rules
In addition to the information required by part 7861.0260, subpart 2, items A and B, an organization must prominently post clear and legible house rules at the point where winners are determined [3.1]. The house rules must include, at a minimum, the following:
- Method and policy of selecting or determining winners
- Statement that the winner need not be present
- Policy on accepting checks and debit card payments
- Statement that the purchase of only one ticket or certificate of participation is required to enter the raffle
- Explanation of multiple pricing levels, if any
- Persons under age 18 may not purchase a raffle ticket or certificate of participation or win a prize
- If wine, beer, or intoxicating liquors are awarded as a raffle prize, persons must be age 21 and older to win, as required by Minnesota Statutes, section 340A.707.
Conclusion
If you plan to offer contests with merchandise prizes in Minnesota, you may need to comply with the state’s raffle regulations. The requirements include sequentially numbered tickets, specific information printed on each ticket, and posting of house rules. Please note that this is not an exhaustive list of requirements, and you should consult with legal counsel to ensure compliance with all applicable laws and regulations.
Source(s):
- [3.1] RAFFLES.
Jurisdiction
Minnesota