Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

Referral Bonuses in Contests in Georgia

Yes, referral bonuses in contests are allowed in Georgia as long as they conform with the qualifications of a lawful promotion specified in paragraph (16) of subsection (b) of Code Section 10-1-393 [1.1][2.1]. However, it is important to note that all promotions or promotional contests involving an element of chance in the distribution of prizes, gifts, awards, or other items which otherwise meet the definition of a “lottery” in this article shall be included within the definition of the term “lottery” for purposes of this article, unless specifically exempted by some other statute or law [1.1]. Therefore, it is recommended to consult with a legal expert to ensure compliance with all relevant laws and regulations.

There are no specific requirements mentioned in the context documents for referral bonuses in contests. However, it is important to comply with all relevant laws and regulations, including those related to bonding requirements [4.1], residency requirements [3.1], and prize proceeds subject to state income tax [5.1]. Additionally, raffles operated by nonprofit, tax-exempt organizations require a license from the sheriff [1.2].

Conclusion

Referral bonuses in contests are allowed in Georgia as long as they conform with the qualifications of a lawful promotion specified in paragraph (16) of subsection (b) of Code Section 10-1-393. It is important to comply with all relevant laws and regulations, including those related to bonding requirements, residency requirements, prize proceeds subject to state income tax, and licensing requirements for raffles operated by nonprofit, tax-exempt organizations.

Source(s):
Jurisdiction

Georgia, Georgia