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

Offering Contests with Non-Cash Prizes in North Dakota

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

According to NDAC Section 10-09-01-05, an amusement game or device may reward the player with only merchandise limited to prizes, toys, or novelties. The merchandise prize, toy, or novelty may not be repurchased for cash or for credits redeemable for cash. The merchandise prize, toy, or novelty may not have a wholesale value or cost exceeding sixteen times the cost of play, and if any prize consists of more than one item, unit, or part, the aggregate wholesale value or cost of all items, units, or parts may not exceed sixteen times the cost of play. Merchandise prizes may not consist of gift certificates, discount coupons or certificates, or other like items which may be equivalent to a cash prize or which may be redeemed or otherwise used to obtain merchandise, products, or services at either no cost or at a reduced cost.

Additionally, NDAC Section 30-03-05-02 states that only nonprofit veterans, charitable, education, religious, and fraternal organizations, civic and service clubs, and public-spirited organizations, as those organizations are defined in North Dakota Century Code chapter 53-06.1 will be issued permits to hold fishing contests. Exemptions to this requirement may be granted by the game and fish director, if, in the opinion of the director, the contest is not detrimental to the fishery resource or to the public, or both.

However, if you are planning to offer a raffle with non-cash prizes, NDAC Section 99-01.3-05.1-03 specifies that prizes must only be cash and must be fifty percent or more of gross proceeds for each single event raffle. The maximum cash prize limits of this section do not apply to a public-spirited organization that supports amateur collegiate athletics. The public-spirited organization’s primary purpose must include support of collegiate athletics.

Points for Prizes Store

NDAC Section 10-16-09-06 outlines the rules for the Points for Prizes store. Points may be redeemed for items listed at store.lottery.nd.gov in the Points for Prizes® store. Points may also be used to purchase Points for DrawingsTM entries. The number of points required to be redeemed for a particular item shall be determined by the North Dakota Lottery and be posted at store.lottery.nd.gov. The North Dakota Lottery may, in its sole discretion, change the points required for redemption of any item at any time. Prizes are nontransferable and nonrefundable unless otherwise authorized by the North Dakota Lottery. The awarding of all prizes is subject to eligibility verification.

Conclusion

In summary, you can offer contests with non-cash prizes in North Dakota, but you must follow the requirements outlined in the relevant sections of the North Dakota Administrative Code. If you are unsure about any of the requirements, it is recommended that you consult with a legal professional.

Jurisdiction

North Dakota

• Gaming