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

Based on the documents provided, contests that involve merchandise prizes are not explicitly mentioned. However, Rhode Island law does allow for lotteries and games of chance under certain circumstances.

Charitable organizations that wish to conduct a permitted game of chance must file a registration statement with the Department of Business Regulation and receive a certificate of approval ^[3.4]. The registration statement must contain information such as the name and purpose of the organization, the place and date of establishment, the names and addresses of officers and trustees, and the general purpose for which the proceeds from the game will be used ^[3.4].

Door prizes are exempt from certain regulations if they are distributed by a club, society, lodge, or association at its dance, dinner, entertainment, or outing where the distribution is purely incidental to the event or when the entire net proceeds of the event are devoted to charity ^[3.2].

Prizes received pursuant to Rhode Island Lottery are subject to personal income tax laws and are includable in the income of both residents and nonresidents alike ^[2.2].

Based on the information provided, it is unclear whether contests that involve merchandise prizes are allowed in Rhode Island. It is recommended that you consult with a legal professional for further guidance.

Source(s):

• [2.2] Treatment by Taxpayers
• [3.2] Door prizes exempt.
• [3.4] Registration of charitable organizations.

Jurisdiction

Rhode Island

• Gaming