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

Requirements for Offering Contests with Non-Cash Prizes in Kansas

Kansas law does not specifically address contests with non-cash prizes. However, Kansas law does regulate lotteries and raffles, which may have implications for contests with non-cash prizes.

According to [KSST 74-8720], an amount equal to not less than 45% of the total sales of lottery tickets or shares, computed on an annual basis, shall be allocated for payment of lottery prizes. The prize to be paid or awarded for each winning ticket or share shall be paid to one natural person who is adjudged by the executive director, the director’s designee or the retailer paying the prize, to be the holder of such winning ticket or share, or the person designated in writing by the holder of the winning ticket or share on a form satisfactory to the executive director.

Additionally, [KSAR 92-23-74] requires that all charitable raffle prizes shall be awarded. Each licensee shall make a diligent effort to locate the winners of all prizes. A prize shall not be forfeited to the licensee. Each prize that is not claimed or for which the winner cannot be located within 30 days from the date of the drawing shall be awarded by conducting another drawing using the original pool of raffle tickets.

Charitable Raffle Ticket Requirements

If the contest is considered a charitable raffle, the raffle ticket requirements outlined in [KSAR 92-23-72] must be followed. Each raffle ticket shall contain all of the following information printed in a clear and legible manner:

• The name of the licensee as it appears on the raffle license
• The licensee’s Kansas charitable raffle license number
• The word “raffle”
• The date, time, and location of the raffle drawing
• The price of the raffle ticket
• A statement specifying whether a participant must be present to win
• A unique sequential identification number on the raffle ticket and ticket stub that is different from any other number found on a ticket sold for that particular raffle activity
• Any other information that the administrator requests.

Each raffle ticket shall be offered for the same price as that for every other raffle ticket being sold for the same charitable raffle. Any licensee may offer a discount for the purchase of two or more raffle tickets if the discount is offered to all persons wanting to participate in the charitable raffle. Each raffle ticket to participate in a charitable raffle shall be paid for in advance by cash, check, or credit card. The extension of credit shall be prohibited. The issuance of free raffle tickets shall not be prohibited; however, the value of all free raffle tickets shall be included in the gross receipts derived from the charitable raffle.

Conclusion

Based on the available information, it is unclear whether contests with non-cash prizes are regulated in Kansas. However, if the contest is considered a lottery or raffle, it may be subject to the regulations outlined in [KSST 74-8720], [KSAR 92-23-74], and [KSAR 92-23-72]. It is recommended that you consult with a legal professional to determine the specific requirements for your contest.

Jurisdiction

Kansas

• Gaming