Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

To offer contests with merchandise prizes in Nevada, the organization must comply with the following requirements:

Requirements for Offering Contests with Merchandise Prizes in Nevada

  1. Compensation for Prizes and Supplies: A qualified organization shall not compensate any person for the provision of prizes and supplies used in the operation of a charitable lottery or charitable game, except to pay the fair market value of the prizes and supplies necessary for the operation of the charitable lottery or charitable game. [NVRS 462.190][1.1]
  2. License for Contest or Exhibition: The Nevada Athletic Commission may issue and revoke licenses to conduct, hold or give contests or exhibitions of unarmed combat in accordance with such terms and provisions as the Commission prescribes. Any application for such a license must be in writing and correctly show and define the applicant. The application must be accompanied by an annual fee to be fixed by the Commission on a uniform scale. [NVRS 467.080][3.2]
  3. Property purchased for use as prize in raffle, contest or game of chance: A person who purchases tangible personal property for the purpose of awarding the property as a prize to the winner of a raffle, contest or game of chance is considered to be the purchaser or consumer of that property for purposes of the sales or use tax. Except as otherwise provided, that person shall pay sales tax to the retailer or remit use tax to the Department at the time of purchase. [NVAC 372.367][2.1]
  4. Operation of Charitable Lottery or Charitable Game: The Chair shall not register a qualified organization to operate a charitable lottery or charitable game outside this State or through the use of a video lottery terminal or any other mechanical, electromechanical or electronic device or machine that performs all the functions of a lottery by itself or when networked with other similar devices or machines. Statewide ticket sales and online ticket sales are permitted upon approval by the Chair, but all lottery ticket sales must be limited to persons who are physically located within this State at the time of purchase. [NVRS 462.180][1.3]
  5. Operation of charitable game without license: A qualified organization may operate a charitable game without obtaining a license pursuant to NRS 463.160 if the qualified organization is registered by the Chair to operate a charitable game pursuant to NRS 462.150 and the total value of all the prizes offered in charitable games operated by the qualified organization during the same calendar year does not exceed $500,000. [NVRS 462.155][1.2]

Conclusion

To summarize, to offer contests with merchandise prizes in Nevada, the organization must not compensate any person for the provision of prizes and supplies used in the operation of a charitable lottery or charitable game, obtain a license for the contest or exhibition, pay sales tax to the retailer or remit use tax to the Department at the time of purchase, and comply with the requirements for operating a charitable game. Additionally, it is recommended to consult with a legal professional to ensure full compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

Nevada