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

Based on the documents provided, contests that involve merchandise prizes are allowed in North Carolina, subject to certain requirements.

Requirements for contests with merchandise prizes

According to [1.1]" >NCGS 14-309.9, the maximum aggregate amount of prizes, in cash and/or merchandise, that may be offered or paid at any one session of bingo is one thousand five hundred dollars ($1,500). However, if an exempt organization holds only one session of bingo during a calendar week, the maximum aggregate amount of prizes, in cash and/or merchandise, that may be offered or paid at any one session is two thousand five hundred dollars ($2,500).

[2.1]" >NCGS 14-309.29 allows prizes to be awarded only through a raffle. No games at a game night event may be played for cash or a cash prize. Participants may exchange chips, markers, or tokens from the game night event for raffle tickets. The cost of the prizes and expenses to operate the game night event, excluding the cost of food, beverages, and entertainment, shall not exceed the proceeds derived from the event.

[1.2]" >NCGS 14-309.15 allows nonprofit organizations to conduct raffles in accordance with the section. The maximum cash prize that may be offered or paid for any one raffle is one hundred twenty-five thousand dollars ($125,000), and if merchandise is used as a prize, and it is not redeemable for cash, the maximum fair market value of that prize may be one hundred twenty-five thousand dollars ($125,000). The total fair market value of all prizes offered by any nonprofit organization, either in cash or in merchandise that is not redeemable for cash, shall not exceed two hundred fifty thousand dollars ($250,000) in any calendar year.

Conclusion

Based on the above requirements, contests that involve merchandise prizes are allowed in North Carolina, subject to certain limitations. The maximum aggregate amount of prizes that may be offered or paid at any one session of bingo is one thousand five hundred dollars ($1,500), or two thousand five hundred dollars ($2,500) if an exempt organization holds only one session of bingo during a calendar week. For game night events, prizes shall be awarded only through a raffle, and the cost of the prizes and expenses to operate the game night event shall not exceed the proceeds derived from the event. For raffles conducted by nonprofit organizations, the maximum cash prize that may be offered or paid for any one raffle is one hundred twenty-five thousand dollars ($125,000), and the total fair market value of all prizes offered by any nonprofit organization, either in cash or in merchandise that is not redeemable for cash, shall not exceed two hundred fifty thousand dollars ($250,000) in any calendar year.

Therefore, if you are planning to offer contests that involve merchandise prizes in North Carolina, you must ensure that you comply with the above requirements.

Source(s):

• [1.1] Bingo prizes.
• [2.1] Game night; prizes and costs.
• [1.2] Raffles.

Jurisdiction

North Carolina

• Gaming