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

Offering Contests with Merchandise Prizes in South Carolina

Based on the context documents, it appears that you can offer contests that involve merchandise prizes in South Carolina. The state allows financial institutions to conduct savings promotion contests to encourage depositors to maintain savings accounts and increase personal savings [1.2]. However, it is important to note that there are specific requirements for offering contests with merchandise prizes.

Requirements for Offering Contests with Merchandise Prizes

According to South Carolina law, lotteries or raffles of any type whatsoever are unlawful unless authorized [4.1]. However, nonprofit raffles for charitable purposes are authorized by Chapter 57, Title 33 of the South Carolina Code of Laws [4.1]. If you are a qualified tax-exempt entity that is organized and operated for charitable purposes and you dedicate raffle proceeds to charitable purposes, you may operate and conduct raffles as authorized by this chapter [4.1].

If you are not a qualified tax-exempt entity, you may still offer contests with merchandise prizes as long as you comply with the following requirements:

  • The contest must not be a lottery or raffle [4.1].
  • The contest must not involve electronic gambling devices or machines of any types, slot machines, video poker or similar electronic play devices [4.1].
  • The contest must not involve wagering on live sporting events, simulcast broadcasts of horse races, or events with an electronic device or machine [4.1].
  • The contest must not be conducted as a fundraising event commonly known and operated as a “casino night”, “Las Vegas night”, or “Monte Carlo night” involving live individuals playing roulette, blackjack, poker, baccarat, or other card games, or dice games [4.1].
  • No prizes, financial rewards, or incentives may be received by players in such events [4.1].

Claiming Prizes

If you offer contests with merchandise prizes, it is important to note that a claim shall be entered in the name of a single natural person [2.1]. No claim may be paid to an individual who is not eighteen (18) years of age [2.1]. The claimant shall sign the back of the ticket and complete and sign a claim form provided by the Executive Director [2.1]. The claimant shall submit the claim form and claimant’s ticket to the South Carolina Education Lottery (SCEL) in accordance with the instructions as stated on the claim form and on the back of the ticket [2.1].

Conclusion

In conclusion, you can offer contests that involve merchandise prizes in South Carolina as long as you comply with the requirements outlined above. It is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

South Carolina