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Can I offer contests that involve non-cash prizes in South Carolina? What are the requirements?
Requirements for Conducting Contests in South Carolina
Based on the information provided in the context documents, it appears that contests involving non-cash prizes are not subject to the same regulations as lotteries and raffles in South Carolina. However, it is recommended that you consult with a legal professional to ensure compliance with any applicable laws and regulations.
Savings Promotion Contests
Financial institutions authorized to do business in South Carolina under federal or state law may conduct savings promotion contests in accordance with the provisions of SCCL 34-45-30 for the purposes of encouraging its depositors to maintain savings accounts and to increase personal savings.
Withholding on Prizes or Winnings
When withholding on non-cash prizes, the person distributing the prize may either accept cash from the prize recipient for the amount of the withholding or pay all taxes required to be withheld. If the former is used, the withholding also becomes income for the prize recipient.
Claiming Prizes
A claim shall be entered in the name of a single natural person. No claim may be paid to an individual who is not eighteen (18) years of age. Unless otherwise provided in the rules for a specific type of game, a claimant shall sign the back of the ticket and complete and sign a claim form provided by the Executive Director. The claimant shall submit the claim form and claimant’s ticket to SCEL in accordance with the instructions as stated on the claim form and on the back of the ticket.
Lotteries or Raffles
Lotteries or raffles of any type whatsoever are unlawful unless authorized by SCCL 33-57-100. However, it is the intent of the General Assembly that only qualified tax-exempt entities, which are organized and operated for charitable purposes and which dedicate raffle proceeds to charitable purposes, shall operate and conduct raffles as authorized by this chapter.
Conclusion
Based on the information provided in the context documents, it appears that there are no specific regulations for contests involving non-cash prizes in South Carolina. However, it is recommended that you consult with a legal professional to ensure compliance with any applicable laws and regulations.
Jurisdiction
South Carolina