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

Yes, you can offer contests that involve non-cash prizes in Mississippi. However, there are certain requirements that you must follow.

Requirements for Offering Contests with Non-Cash Prizes in Mississippi

  • The value of all non-cash prizes shall be equal to the fair market value or normal and reasonable selling price of such prize [1.1].
  • If the prize has been donated to the charitable organization, then the donor of such prize shall prepare an invoice or statement to the charitable organization which states that the item is donated to the charitable organization and states the normal selling price or fair market value of such item. This documentation will be attached to the session report in which the prize was awarded [1.1].
  • The value of the non-cash prize is included in the total prize limitation which may be awarded for any session [1.1].
  • The total amount of prizes which may be awarded in any one (1) session by a bingo location shall not exceed Seven Thousand Five Hundred Dollars ($7,500.00) in cash or other items of value offered as a prize or Eight Thousand Dollars ($8,000.00) if only one (1) session is held in any one week. The total prize limit does not include paybacks for pull-tabs or electronic representations [1.1].

It is important to note that the use of bingo proceeds for any other purpose to include start-up costs, attorney fees, appellate costs or any other cost not routinely incurred by the charitable organization must be preapproved by the Commission in writing. Approvals are not necessarily prohibited but the Commission must determine if they are necessary, reasonable, and specifically described in the charitable organization’s statement of purpose. No attorney fees will be approved to defend any individual in an administrative, civil or criminal matter [1.1].

If you are not a charitable organization, you may still offer contests that involve non-cash prizes, but you should consult with a legal professional to ensure compliance with all applicable laws and regulations.

[1.1] Mississippi Gaming Commission, “Charitable Gaming Regulations,” accessed August 31, 2021,

Source(s):
Jurisdiction

Mississippi