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

Offering Contests with Non-Cash Prizes in Arkansas

Yes, you can offer contests that involve non-cash prizes in Arkansas. However, there are certain requirements that must be met.

Prize Value Limitations

According to Arkansas Code, a non-cash bingo prize may be merchandise with a recognized wholesale cost not to exceed one thousand dollars ($1,000) [1.1].

Disclosures

No sponsor shall offer a prize nor shall a sponsor use any solicitation, whether written or oral, and however communicated, that offers a prize, unless the person to whom such offer is made has first received a written prize notice containing the information required in subsections (b) and (c) of this section [2.3].

License Application

An applicant for an authorized organization license shall file a written verified application with the Department of Finance and Administration on a form prescribed by the department [4.3].

Expenses

Expenses incurred or paid in connection with the conduct of games of bingo or raffles must be paid from a licensed authorized organization’s bingo and raffle account if the licensed authorized organization is required under § 23-114-501 to maintain such an account [4.1].

Exemptions

The Prize Promotion Act exempts sponsors of prize promotions where all prizes are awarded absolutely for free and there is no opportunity for the payment of money from the person to the sponsor or any agent of the sponsor [2.2].

Raffle and Bingo Records

Bingo and raffle records shall be maintained in Arkansas in accordance with generally accepted accounting practices [1.2].

Therefore, if you want to offer contests with non-cash prizes in Arkansas, you must comply with the above requirements.

Source(s):
Jurisdiction

Arkansas