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

Contests with Non-Cash Prizes in Kentucky

Kentucky law does not specifically address contests with non-cash prizes. However, Kentucky law does regulate lotteries and contests with cash prizes. If the contest involves cash prizes, it may be subject to Kentucky lottery regulations ^[2.1].

If you are a licensed charitable organization, you may conduct special limited charity fundraising events with non-cash prizes. No cash shall be used in playing special limited charity games at a special limited charity fundraising event. Games shall be played with chips, scrip, or imitation money which shall be purchased only through a central bank or cashier under the authority of the chairperson designated by the licensed charitable organization conducting the special limited charity fundraising event. No chips, scrip, or imitation money shall be sold at a gaming table or by a dealer. Chips, scrip, or imitation money may be redeemed for cash or prizes. Prizes to be offered and their fair market values shall be displayed or listed in a conspicuous location within the gaming area. Prizes shall be redeemed directly or through an auction process within twenty-four (24) hours after the conclusion of the event ^[2.1].

It is recommended that you consult with a legal professional to ensure compliance with all applicable laws and regulations.

Source(s):

• [2.1] Special limited charitable fundraising event licenses – Limitation – Times – Locations – Restrictions on wagering, stakes, and prizes.

Jurisdiction

Kentucky

• Gaming