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

Here is the response to your query:

Offering Non-Cash Prizes in Washington State

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

According to WAAC 230-11-065, for enhanced raffles, a purchase contract is not necessary for smaller non-cash prizes, but the bona fide charitable or nonprofit organization must be able to demonstrate that such a prize is available and sufficient funds are held in reserve in the event that the winner chooses a non-cash prize.

Additionally, raffle prizes must be available at the time and place of the drawing, and if cash, be United States currency or an equivalent amount of negotiable instruments. For licensees, non-cash prizes must not exceed forty thousand dollars per prize or three hundred thousand dollars in total raffle prizes in a license year, except as authorized in WAC 230-11-067.

Promotional Contests of Chance Similar to Bingo

If you are offering a promotional contest of chance similar to bingo, commonly referred to as “no fee bingo,” you must follow the requirements outlined in WAAC 230-18-010. A business must not charge participants a direct or indirect fee to participate in the PCOC. Indirect fees include, but are not limited to, cover charges. The business must operate the PCOC for no more than a total of three hours per day, twice per week. Participants must receive a bingo card immediately before the start of each game. The business must award only merchandise items, such as food, nonalcoholic beverages, hats, shirts, or other promotional items valued at less than twenty-five dollars each. The business must not substitute cash prizes for merchandise prizes and must not award prizes worth more than one hundred dollars per week or five thousand dollars per year. The business must record the names of winners and prize(s) won for each game. The business must use recreational bingo cards that are not used in authorized bingo games.

Conclusion

In summary, you can offer contests that involve non-cash prizes in Washington State, but you must ensure that you follow the requirements outlined in WAAC 230-11-065. If you are offering a promotional contest of chance similar to bingo, you must follow the requirements outlined in WAAC 230-18-010.

Jurisdiction

Washington

• Gaming