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Can I offer contests that involve non-cash prizes in Alabama? What are the requirements?

Based on the documents provided, it appears that offering contests with non-cash prizes is allowed in Alabama. However, there are certain requirements that must be met.

Requirements for Offering Contests with Non-Cash Prizes in Alabama

  1. Limitation on Prize Value: According to ALCA 5-27-5, no prize or award shall exceed twelve thousand five hundred dollars ($12,500) for savings promotion contests offered pursuant to this chapter.
  2. Plan for Distribution of Prizes: For grants to the Alabama State Fair Authority, a plan for distribution of premiums or prizes must be adopted by the Alabama State Fair Authority and approved by the commission [ALCA 2-7-5]. For state aid available for the purposes of ALCA 2-7-25, an association must file with or make available to the board a statement of prizes and premiums to be paid during the current fair season for entries outlined in Section 2-7-24 [ALCA 2-7-25].
  3. Disclosure of Prize Value: For bingo games, the bingo permit holder shall announce and make known to all bingo players the dollar value of each and every bingo prize to be given at each and every bingo game at each bingo session [ALCA 45-49-150.06(c)].
  4. Compliance with Fantasy Contest Procedure Requirements: For fantasy contests, a fantasy contest operator who operates fantasy contests with an entry fee shall implement commercially reasonable procedures that are intended to accomplish certain requirements, including preventing the fantasy contest operator from offering a fantasy contest open to the general public that does not establish and make known all prizes and awards offered to winning participants in advance of the game or contest [ALCA 8-19F-4(5)].

Conclusion

Based on the documents provided, it appears that offering contests with non-cash prizes is allowed in Alabama, subject to certain requirements. These requirements include limitations on prize value, a plan for distribution of prizes, disclosure of prize value, and compliance with fantasy contest procedure requirements.

Jurisdiction

Alabama