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

Yes, you can offer contests that involve non-cash prizes in Michigan. However, the specific requirements depend on the type of contest. Below are the requirements for each type of contest:

Bingo

According to MIAC R 432.21325, the total retail value of all merchandise and cash prizes offered or awarded through bingo at a single bingo occasion shall not exceed the limitations set by the act for the specific license type. Prizes in a single game may be paid in steps, however, the value of prizes shall not exceed the total amount set by the act for a single game. The value of donated prizes shall be their total retail value.

Fantasy Contests

MIAC 432.503 requires that a person shall not offer fantasy contests in Michigan unless the person is a licensed fantasy contest operator. To become licensed, an applicant must submit an application and pay a fee of $10,000. The applicant must provide sufficient documentation to the board to ensure that the applicant meets the requirements for licensure as determined by the board. The board may require licensure of a holding company, management company, or any other person it considers sufficiently connected to the fantasy contest operator if that licensure is necessary to preserve the integrity of fantasy contests and protect fantasy contest players. The board may promulgate rules related to the conduct of fantasy contests, including rules setting forth penalties for violations of this act or any rules promulgated under this act.

Raffles

MIAC R 432.21506 requires that all raffle tickets, except those used for in-house raffles, shall contain at a minimum the following information printed in a clear and legible manner: the name of the licensee, the license number, the word “raffle,” the date, time, and location of the drawing, the price of the raffle ticket, a unique sequential identification number on the raffle ticket and ticket stub, the top prize or other information as directed by the bureau, and the stub of the ticket retained by the licensee shall contain a space for the purchaser’s name, address, and phone number. All prizes shall be awarded. A winner need not be present to win except as provided by R 432.21511. The licensee shall make a diligent effort to locate the winners of all prizes. A prize shall not be forfeited to the licensee. Except for a raffle conducted under R 432.21511, any prize not claimed or for which the winner cannot be located within 60 days from the date of the raffle shall be distributed in accordance with one of the following methods: (a) The licensee shall conduct another drawing using the original pool of ticket stubs (b) With prior written approval of the bureau, the licensee shall donate the prizes to a nonprofit organization with a charitable purpose as prescribed by R 432.21101(1)(b).

Therefore, if the non-cash prizes offered in the contest fall under the categories of bingo, fantasy contests, or raffles, the specific requirements outlined in the relevant documents must be followed.

Jurisdiction

Michigan

• Gaming