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

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

Requirements for Offering Contests with Non-Cash Prizes in Nebraska

In Nebraska, contests with non-cash prizes are considered raffles and are regulated by the Nebraska Lottery and Raffle Act [1.1][1.2]. To offer such contests, you must comply with the following requirements:

  1. Participants must pay or agree to pay something of value for an opportunity to win [1.1][1.2].
  2. Winning opportunities must be represented by tickets differentiated by sequential enumeration [1.1][1.2].
  3. Winners must be determined by a random drawing of tickets or by the method set forth in the Nebraska Small Lottery and Raffle Act [1.1][1.2][1.8].
  4. At least eighty percent of all of the prizes to be awarded are merchandise prizes which are not directly or indirectly redeemable for cash by the licensed organization conducting the raffle or any agent of the organization [1.1][1.2].
  5. The total fair market value of all promotional prizes awarded at a bingo occasion does not exceed one hundred dollars in value or, in the case of a limited period bingo, does not exceed two hundred fifty dollars in value [1.3].
  6. The licensed organization conducting the raffle must obtain a special permit from the Nebraska Department of Revenue [1.5].
  7. The licensed organization conducting the raffle must clearly print its name and identification number on each raffle ticket or stub used in the raffle [1.6].
  8. The gross proceeds of the raffle must be used solely for charitable or community betterment purposes, awarding of prizes, and expenses [1.7].

Conclusion

To offer contests with non-cash prizes in Nebraska, you must comply with the requirements outlined above. If you have any further questions or concerns, it is recommended that you consult with a legal professional.

Source(s):
Jurisdiction

Nebraska