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

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Offering Contests with Merchandise Prizes in Nebraska

Yes, you can offer contests that involve merchandise prizes in Nebraska. Such contests are considered raffles under Nebraska law [1.1][1.2]. To conduct a raffle in Nebraska, you must be a qualifying nonprofit organization [1.1].

Requirements for Conducting a Raffle in Nebraska

To conduct a raffle in Nebraska, you must meet the following requirements [1.1][1.2][1.5][1.6]:

  • Participants pay or agree to pay something of value for an opportunity to win.
  • Winning opportunities are represented by tickets differentiated by sequential enumeration.
  • Winners are to be determined by a random drawing of tickets or by the method set forth in section 9-511.01.
  • At least eighty percent of all of the prizes to be awarded are merchandise prizes which are not directly or indirectly redeemable for cash by the qualifying nonprofit organization conducting the raffle or any agent of the organization.
  • Each licensed organization conducting a lottery or raffle conducted pursuant to the Nebraska Lottery and Raffle Act shall have its name and identification number clearly printed on each lottery or raffle ticket or stub used in such lottery or raffle.
  • No such ticket or stub shall be sold unless such name and identification number is so printed thereon.
  • In addition, all lottery or raffle tickets or stubs shall bear a number, which numbers shall be in sequence and clearly printed on the ticket or stub.
  • Each ticket or stub shall have an equal chance of being chosen in the drawing.
  • Each ticket or stub shall be constructed of the same material, shall have the same surface, and shall be substantially the same shape, size, form, and weight.
  • Each licensed organization conducting a lottery or raffle shall keep a record of all locations where its tickets or stubs are sold.

Special Permit to Conduct a Raffle

A licensed organization may obtain from the department a special permit to conduct one raffle [1.5]. The cost of the special permit shall be ten dollars [1.5]. The special permit shall exempt the licensed organization from subsections (2) and (3) of section 9-427 and from section 9-430 [1.5]. The organization shall comply with all other requirements of the Nebraska Lottery and Raffle Act [1.5].

Conclusion

To offer contests that involve merchandise prizes in Nebraska, you must be a qualifying nonprofit organization and comply with the requirements of the Nebraska Lottery and Raffle Act. You may also need to obtain a special permit from the department to conduct a raffle.

Source(s):
Jurisdiction

Nebraska