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 Tennessee? What are the requirements?

Yes, you can offer contests that involve non-cash prizes in Tennessee. However, you must comply with the state’s regulations.

Requirements for Contests with Non-Cash Prizes in Tennessee

  • The ticket, share, chance, or similar record must bear the name of the nonprofit organization on whose behalf the event is being conducted [3.1].
  • All prizes exceeding $50 must be paid by check from a designated account of the organization to a named individual. In the case of non-cash prizes or awards, payment shall be in the form of goods or services and, if applicable, by an appropriate legal instrument including, but not limited to, deeds, titles, and gift certificates. Checks or other legal instruments payable to “cash” or “bearer” are expressly prohibited [3.1].
  • For single location annual events, the total value of all prizes awarded per annual event shall not exceed $250,000; provided, that such limitation shall not apply to prizes of real property. For multiple location annual events, the total value of all prizes awarded per annual event location shall not exceed $150,000; provided, that such limitation shall not apply to prizes of real property. Notwithstanding subdivisions (c)(1) and (2), for annual events conducted by a nonprofit organization that does not intend to raise gross revenue from the annual event exceeding $5,000, the total value of all prizes awarded per annual event shall not exceed $25,000 [3.1].
  • No ticket, share, chance, or similar record shall be purchased by, and no prize or award shall be paid to certain individuals, including members of the board of directors or officers of a nonprofit organization authorized by the general assembly to operate an annual event for such organization, members of the general assembly during their term of office, and officers, employees, agents, or subcontractors of any vendor who have access to confidential information that may compromise the integrity of the lottery [3.2][3.3].
  • All annual event applications must be submitted to the secretary of state between July 1 and January 31 for the annual event period beginning July 1 following the close of the application period and ending June 30 of the subsequent calendar year. The application must include the name, mailing address, and physical address of the nonprofit organization, the name and date of the event, the location of the event, a description of the type of lottery game to be conducted, and a description of the charitable use of the proceeds from the event [3.2][3.3].

Therefore, if you plan to offer contests with non-cash prizes in Tennessee, you must ensure that you comply with the state’s regulations and submit an annual event application to the secretary of state.

Source(s):
Jurisdiction

Tennessee