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

Based on the additional context documents, it appears that the existing response may not be entirely accurate. While NDCC Section 51-16.1-03 prohibits offering a rebate, discount, or anything of value to a buyer or lessee as an inducement for a sale or lease in consideration of the buyer or lessee giving to the seller or lessor the names of prospective purchasers or lessees, or otherwise aiding the seller or lessor in making a sale to another person, if the earning of the rebate, discount, or other thing of value is contingent upon the occurrence of an event subsequent to the time the buyer or lessee agrees to the sale or lease, this may not apply to contests that involve referral bonuses.

However, there are specific regulations that must be followed for fishing contests in North Dakota. Only nonprofit veterans, charitable, education, religious, and fraternal organizations, civic and service clubs, and public-spirited organizations, as those organizations are defined in North Dakota Century Code chapter 53-06.1 will be issued permits to hold fishing contests [2.1]. Any organization desiring to hold a fishing contest must submit an application for a permit to the game and fish director at least thirty days prior to the start of the contest [2.2]. In addition, a minimum of seventy-five percent of any entry or participation fee paid by the contestants for fishing activities must be returned to the contestants as cash or merchandise (must be cash equivalent and cannot include donated merchandise when an entry fee is required) [2.5].

There are also specific regulations regarding prize restrictions and requirements for contests, including that prizes must only be cash and must be fifty percent or more of gross proceeds for each single event raffle. However, a single cash prize may not exceed twenty-five thousand dollars and the total cash prizes may not exceed twenty-five thousand dollars during a day [4.1].

Based on the available information, it is unclear whether contests that involve referral bonuses are allowed in North Dakota outside of fishing contests. Therefore, it is recommended that you consult with a legal professional for further guidance.

Source(s):
Jurisdiction

North Dakota