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Can I offer contests that involve referral bonuses in Colorado? What are the requirements?

Based on the documents provided, it is legal to offer contests that involve referral bonuses in Colorado, but there are certain requirements that must be met.

Requirements for Offering Contests with Referral Bonuses in Colorado

  1. Disclosure of Rules: The rules and operation of the contest must be disclosed to participants in a clear and complete manner [1.1].
  2. Prohibition of Misleading and Deceptive Prize Promotions: The contest must not involve misleading or deceptive prize promotions [1.1].
  3. Compliance with Contest Rules: The contest must be conducted in accordance with the rules and usages purporting to govern it [3.1].
  4. Prohibition of Benefit Conferral or Threats: The contest must not involve conferring or offering any benefit upon, or threatening any detriment to a participant, official, or other person associated with the contest or exhibition [3.1].
  5. Compliance with Coupon Use: If coupons are used for promotions, they must be given to the consumer or public and cannot be sold, used to purchase goods or services, pay off Lottery Debts, or reimburse a Licensee for any loss [5.1].
  6. Compliance with Prize Payment: All prizes must be paid upon presentation and validation of the ticket pursuant to instructions on the back of the Jackpot Ticket and instructions specified in the specific Game Rule [4.2].
  7. Compliance with Claim Form: The Prize Winner, or a Prize Winner’s legally authorized representative, must sign the winning Jackpot Ticket and complete a claim form that is available from any Licensee, Lottery Claims Center, or the Colorado Lottery Website [4.2].
  8. Compliance with Payment of Prizes: Payment of prizes shall be made to the Prize Winner within a reasonable time after they are awarded and after the claims are validated by the Lottery [4.2].

Additional Information

The Colorado Lottery Commission and the state lottery division constitute an enterprise for the purposes of section 20 of article X of the state constitution, so long as the commission retains the authority to issue revenue bonds and the division receives less than ten percent of its total annual revenues in grants from all Colorado state and local governments combined [2.1].

The use of bar-coded coupons and free tickets are marketing tools used by the Lottery for promotions. All coupons, when used for promotions, must be given to the consumer or public. In the event the Lottery uses a promotional partner to distribute coupons, the promotional partner must ensure all coupons are issued to the consumer or public and any unused coupons are returned to the Lottery. At no time may coupons be sold, used to purchase goods or services, pay off Lottery debts or reimburse a Licensee for any loss [4.1][5.2].

In summary, it is legal to offer contests that involve referral bonuses in Colorado, but the contest must comply with the requirements listed above.

Source(s):
Jurisdiction

Colorado