Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

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

Requirements for Offering Contests with Non-Cash Prizes in Pennsylvania

  1. Ownership of Prizes: If you are offering a raffle in which real or personal property prizes are to be awarded, you must have paid for in full or otherwise become the owner, without lien or interest of others, of the real or personal property prior to the drawing at which the winners of the prizes are to be determined. [1.1]
  2. Prize Limits: A licensed eligible organization may not award an individual prize that exceeds $500 except under a special raffle permit, a daily drawing as provided in § 901.702(e)(1) (relating to prize limits) or a weekly drawing. If the total prizes awarded for an operating week exceed $5,000, you need a special raffle permit, a daily drawing as provided in § 901.702(e)(1) or (2) (relating to prize limits) or a weekly drawing as provided in § 901.702(f)(2). [1.2][1.3]
  3. Illegal Prizes: You cannot offer a prize that is illegal under a municipal, State or Federal law. [1.4]
  4. Payment of Prizes to Minors: If the person entitled to a prize on a winning ticket is under the age of 18 years, and the prize is $10,000 or less, the Bureau will make payment of the prize as the court may direct, to the minor, guardian or other person under 20 Pa.C.S. Chapter 51 (relating to minors). If the person entitled to a prize on a winning ticket is under the age of 18 years, and the prize exceeds $10,000, the Bureau will make payment of the prize to the person as shall have been validly appointed a guardian of the estate of the minor child as provided by appropriate court order under 20 Pa.C.S. Chapter 51. [2.2]
  5. Determination of Prize Winning Tickets: Raffle lottery game prize winning chances or plays will be determined under this part and specific raffle lottery game notifications published in the Pennsylvania Bulletin under § 874.4 (relating to notice of raffle lottery game rules). A prize shall be paid only if the ticket meets the criteria established in § 874.10 (relating to ticket validation and requirements). [4.1]

Conclusion

You can offer contests that involve non-cash prizes in Pennsylvania, but you need to follow the requirements mentioned above.

Source(s):
Jurisdiction

Pennsylvania