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

Yes, you can offer contests that involve non-cash prizes in Colorado. However, there are certain requirements that you need to follow.

Requirements for offering contests with non-cash prizes in Colorado

  1. The right to a prize is not assignable, except in certain circumstances. Payment of any prize may be paid to the estate of a deceased prizewinner or any person pursuant to a voluntary assignment of the right to receive future annual prize payments, in whole or in part, if the assignment is made pursuant to an appropriate judicial order of the district court located in the city and county of Denver or the judicial district where the assignor resides or where the commission’s headquarters are located. [1.1]
  2. Prior to the payment of any non-cash prize required by rule of the commission to be paid only at the lottery offices and subject to state and federal tax reporting, the department of revenue shall require the winner to submit the winner’s social security number and federal employer identification number, if applicable, and shall check the social security number of the winner with those certified by the department of human services for the purpose of the state lottery winnings offset as provided in section 26-13-118. [1.1]
  3. If a person otherwise entitled to a non-cash prize or a winning ticket owes child support debt, child support arrearages, or child support costs, the department of revenue shall withhold from the amount of the non-cash prize paid to the winner an amount equal to the amount of child support debt, child support arrearages, and child support costs that are due or, if the amount of the non-cash prize is less than or equal to the amount of child support debt, arrearages, and costs due, shall withhold the entire amount of the non-cash prize. [1.1]
  4. The holder of a Prize-Winning Jackpot Ticket of $600.00 or more, or their authorized representative shall complete a claim form and submit the completed form and Ticket to the Colorado Lottery. The Lottery shall pay the Prize upon presentation and Validation of the ticket pursuant to instructions on the back of the Jackpot Ticket and instructions specified in the specific Game Rule. [2.1]
  5. In the event that the intercept program reveals an outstanding obligation for a winner of a Prize, the Prize will not be awarded until the intercept obligation is paid as set forth in C.R.S. 44-40-113(6) and 44-40-114. [2.1]

Conclusion

You can offer contests that involve non-cash prizes in Colorado, but you need to follow certain requirements. These requirements include restrictions on the assignment of prizes, the withholding of child support debt, and the completion of a claim form for prizes of $600 or more. [1.1][2.1]

Source(s):
Jurisdiction

Colorado