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

Here are the requirements for offering contests that involve non-cash prizes in Massachusetts:

Requirements for Offering Contests with Non-Cash Prizes in Massachusetts

In Massachusetts, contests that involve non-cash prizes are regulated by the Massachusetts State Lottery Commission. The following requirements must be met:

  1. All prizes must be paid within a reasonable time after they are awarded and after the claims are verified by the Director [1.1][2.1][1.2].
  2. The Director may delay any payment in order to review a change of circumstances relative to the prize awarded, the payee, the claim, or any other matter that may have come to his or her attention [1.1][2.1][1.2].
  3. If any prize is payable for the life of the prize winner, only a natural person may claim such a prize and, if claiming on behalf of a group, corporation, or the like, the life of such natural person claiming shall be the measuring life [1.1][2.1][1.2].
  4. The Director may conduct an internal review of a High-frequency Prize Winner, as defined in 961 CMR 2.03, to determine if the submission of at least 20 claims for Lottery prizes, each with a value of at least $1,000.00, within any period of 365 days, is factually or statistically improbable. If the Director makes such a determination of factual or statistical improbability, the Director may impose a prize claim suspension [1.1][2.1][1.2].
  5. A High-frequency Prize Winner shall be entitled to a hearing before any prize claim suspension goes into effect, provided that the hearing request is in writing and received by the Director before the 21st calendar day from the date which appears on the suspension notice [1.1][2.1][1.2].
  6. Each prize ticket owner, other than those paid in cash, or his or her representative is required to complete the claim form which is available free of charge at each Sales Agent or Lottery office and sign the winning ticket [1.3].
  7. The claim form must have attached thereto the original Lottery ticket [1.3].
  8. The prize ticket owner grants to the Commission the right to use his or her name, address, and photograph to publicize his or her winnings [1.3].
  9. The claim form may contain any other provision which the Director may, from time to time, deem necessary and proper to protect the Commission and the public welfare [1.3].
  10. All prizes or a portion thereof which remain unpaid at the time of the prize winner’s death shall be payable to his or her duly qualified Administrator, Executor or other representative of his or her estate once satisfactory evidence of said representative’s appointment has been presented to the Director, claim forms have been properly filled out, and the Director is satisfied that such payment is lawful and proper [1.4][3.1].

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

Source(s):
Jurisdiction

Massachusetts