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

Yes, you can offer contests that involve non-cash prizes in North Carolina. However, there are some guidelines that you should follow to ensure compliance with applicable laws and regulations.

Guidelines for Offering Contests with Non-Cash Prizes in North Carolina

1. Ensure that the contest does not violate any laws or regulations in North Carolina.
2. Clearly state the rules and eligibility requirements for the contest.
3. Clearly state the value of the non-cash prizes being offered.
4. Ensure that the contest is fair and unbiased.
5. Consider consulting with a legal professional to ensure compliance with all applicable laws and regulations.

It is important to note that advertising lotteries is illegal in North Carolina, except as provided in Chapter 18C of the General Statutes or in connection with a lawful raffle as provided in Part 2 of this Article ^[2.2]. Therefore, any contest that could be construed as a lottery should be avoided.

Relevant North Carolina Laws and Regulations

• Game night events cannot offer cash prizes, but non-cash prizes can be awarded through a raffle ^[2.1].
• Nonprofit organizations, candidates, political committees, and government entities can conduct raffles in accordance with NCGS 14-309.15 ^[1.2].
• Telephonic sellers offering gifts or prizes with a market value of $500 or more must notify the Secretary in writing and post a bond for the market value or represented value of all gifts or prizes represented as available under the promotion ^[5.1].

Overall, while there are no specific requirements for offering contests with non-cash prizes in North Carolina, it is important to ensure compliance with all applicable laws and regulations.

Source(s):

• [2.1] Game night; prizes and costs.
• [1.2] Raffles.
• [2.2] Advertising lotteries.
• [5.1] Bond requirement; prizes and gifts.

Jurisdiction

North Carolina

• Gaming