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

Based on OHAC Rule 109:1-4-16, non-cash prizes can be awarded in instant bingo games in Ohio. However, the organization must record the value of the prize as the amount actually expended by the organization for the purchase of the non-cash prize, including the actual cost of the non-cash prize and any sales tax actually expended by the organization for the purchase of the non-cash prize. The organization must also attach a copy of the itemized receipt for the purchase of the non-cash prize to the corresponding invoice for the purchase of the deal of instant bingo tickets for which the non-cash prize is awarded. The organization must pay for the purchase of non-cash prizes by check or electronic fund transfers drawn from the checking account devoted exclusively to the bingo session or game [1.1].

Regarding contests in general, OHAC Rule 3772-74-10 requires fantasy contest operators to draft written internal procedures that include procedures for complying with all applicable state and federal requirements, as well as industry-standard procedures, to protect the privacy and online security of fantasy contest players and their accounts, including procedures preventing unauthorized withdrawals from fantasy contest player accounts. The rule also requires operators to establish the maximum number of entries that a fantasy contest player may submit to each fantasy contest and clearly and conspicuously notify fantasy contest players of what that limit is prior to the player paying any entry fee. Additionally, the rule prohibits fantasy contest operator employees, relatives living in the same household as those employees, and athletes, coaches, referees from participating in fantasy contests [4.2].

However, there is no specific mention of non-cash prizes in OHAC Rule 3772-74-10.

OHAC Rule 3772-14-01 allows for player against player contests in Ohio. However, this rule applies to contests in which individuals pay consideration to participate or compete against one another in a program or series of programs in which the casino operator has no stake other than a rake. The rule requires that all player against player contests must be conducted using only commission-approved electronic gaming equipment, table games, and table game equipment unless otherwise approved by the executive director. Player against player contests must be conducted in a separate room or area segregated within the gaming floor, unless otherwise approved by the executive director. A casino operator may only offer a player against player contest in the manner it is described in written, dated rules that must contain, at a minimum, the following information: the date(s) on which the player against player contest will be held or its designation as a perpetual event, required entry fee or other consideration to be paid in order to participate, formula to be used to calculate the rake, participant eligibility requirements, minimum and maximum number of participants, a description of the player against player contest, including the program, structure, equipment, guidelines, time limits, any material conditions or limiting factors, and criteria for entry and determination of winners, the prize structure, including amounts or percentages, or both, for prize levels, and procedures for event cancellation, including timely notification to entrants and refunding of entry fees or other consideration collected [2.1].

It is recommended to consult with a legal expert to ensure compliance with all applicable state and federal laws and regulations when offering contests that involve non-cash prizes in Ohio.

Source(s):
Jurisdiction

Ohio