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Can I offer contests that involve referral bonuses in Alabama? What are the requirements?
Based on the documents provided, there are no specific provisions that address referral bonuses in fantasy contests in Alabama. However, fantasy contest operators who operate fantasy contests with an entry fee shall implement commercially reasonable procedures that are intended to accomplish several requirements [1.1]. These requirements include preventing the fantasy contest operator, employees of the fantasy contest operator, and relatives living in the same household as the employees, from competing in any public fantasy contest offered by any fantasy contest operator in which the operator offers a cash prize to the general public, preventing sharing of confidential information that could affect fantasy contest play with third parties until information is made publicly available, and disclosing the number of entries that a fantasy contest player may submit to each fantasy contest and providing reasonable steps to prevent players from submitting more than the allowable number [1.1].
Additionally, fantasy contest operators must register with the regulator and pay an initial registration fee and an annual registration renewal fee [1.3]. On the anniversary date of the fantasy contest operator’s registration, the fantasy contest operator shall annually pay a tax equal to ten and one-half percent of the fantasy contest operator’s gross fantasy contest revenues from the immediately preceding 12-month period [1.3].
Based on the documents provided, there are no specific provisions that prohibit referral bonuses in fantasy contests in Alabama. However, fantasy contest operators must comply with the requirements outlined in [1.1] and register with the regulator and pay the necessary fees and taxes outlined in [1.3].
Therefore, it is recommended that you consult with a legal professional to ensure that your referral bonus program complies with all applicable laws and regulations in Alabama.
Note: This response is based solely on the documents provided and is not a substitute for legal advice.
References:
Source(s):
Jurisdiction
Alabama