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

Based on the Iowa Administrative Code, it is possible to offer contests that involve non-cash prizes in Iowa. The number and amount of prizes for a drawing or contest shall be determined by the lottery and set forth in the specific drawing rules or contest description [1.1]. The specific drawing rules or contest description shall set forth the manner in which prizes won shall be claimed [1.2]. However, there are certain requirements that must be met.

Requirements for offering contests with non-cash prizes in Iowa

  1. Prize Limits: Cash or merchandise prizes awarded for each game shall not exceed $250 in value [2.1]. For games of skill, games of chance, and bingo, the maximum prize limit is $950 in merchandise [3.1].
  2. Authorization: The lottery authority board authorizes drawings and contests that meet the criteria set forth in the Iowa Administrative Code [1.3].
  3. Entry Validation: To be a valid entry, the entry must be a legally acquired nonwinning Iowa lottery ticket identified as an entry for the particular promotion [1.4].
  4. Claiming Prizes: A prize claim shall be entered in the name of a single individual or organization. An original ticket or share must be presented before payment of any prize will occur. No reproductions, facsimiles, or copies of any kind will be allowed. The player must sign the original ticket or share prior to presenting the ticket to another party for the purpose of checking or validating the ticket [4.1].

Therefore, if the non-cash prizes offered in the contest meet the prize limits and the contest meets the authorization and entry validation requirements, it is possible to offer contests with non-cash prizes in Iowa.

Source(s):
Jurisdiction

Iowa