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Can I offer contests that involve non-cash prizes in Arizona? What are the requirements?
Yes, you can offer contests that involve non-cash prizes in Arizona. However, there are certain requirements that must be followed.
Requirements for Offering Contests with Non-Cash Prizes in Arizona
- Display of Prizes: All prizes must be displayed while the game is open to the public [1.1].
- Prohibited Prizes: Certain merchandise prizes are prohibited, including weapons, fireworks, handcuffs, melted glass bottles, and items that are inconsistent with the state’s interest in providing entertainment for families and children [1.1].
- Posting of Prizes and Game Standards: For every game, a concessionaire must conspicuously post a sign stating the price of the game, clear game instructions and standards, and the exact task the player is required to complete to win the designated prize. The sign must be made of wood, metal, masonite, or a similar sturdy material, with block lettering of a contrasting color, at least two inches high [1.2].
- Prize Validation and Payment: A licensed retailer shall provide prize validation and payment services for instant scratch tickets or on-line tickets to any Lottery claimant regardless of where the ticket was purchased to be eligible for the highest sales commission compensation rate. A licensed retailer shall pay all winning prizes for instant scratch tickets or draw game tickets up to and including $100, and may pay all winning prizes from $101 up to and including $599. For prizes over $600, a licensed retailer with a Redemption Agent endorsement shall determine, through the Lottery provided equipment, and prior to paying the prize, whether the holder of a winning lottery ticket is subject to Arizona debt set-off requirements under A.R.S. § 5-575. A licensed retailer with a Redemption Agent endorsement shall be responsible for verification of identity and social security number and shall require prizewinners to provide acceptable identification and documentation [4.1].
- Determination of a Winning Promotion: Eligibility to win a prize is based on compliance with the designated promotion playstyle. The Promotion Profile shall define any required level of participation to be eligible [4.4].
Additionally, there are other relevant documents that provide information on contests in Arizona. For example, [2.1] describes the establishment of an academic contests fund by the state board of education, while [3.1] outlines the rules and licensure requirements for fantasy sports contests. [4.3] provides information on the prize fund for the state lottery.
Therefore, to offer contests with non-cash prizes in Arizona, you must follow the requirements outlined above and any other relevant regulations.
Source(s):
- [1.1] Prizes
- [2.1] Academic contests fund; state board of education powers and duties; distribution of monies
- [1.2] Posting Prizes and Game Standards
- [3.1] Fantasy sports contests; exceptions; rules; licensure
- [4.1] Prize Validation and Payment
- [4.3] Prize Fund
- [4.4] Determination of a Winning Promotion Eligibility to win a prize is based on compliance with the desig- nated promotion playstyle as follows:
Jurisdiction
Arizona