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 Virginia? What are the requirements?

Based on the provided context documents, it appears that referral bonuses are not specifically mentioned in Virginia’s regulations for contests and promotional offers. However, it is important to note that any promotional offer involving sports betting must fully and accurately disclose the material terms and limitations of the offer before the sports bettor provides anything of value in exchange for the offer [4.1].

Requirements for Contests and Promotional Offers

In Virginia, a license is required for “instant ticket” games or contests used for promoting or furthering the sale of any product [1.1]. The license must be obtained from the Director before using any “instant ticket” game or contest. The license requirement applies even if no purchase is required to participate in the game or contest. Any person who violates this requirement may be guilty of a Class 3 misdemeanor [1.1].

For promotional offers involving sports betting, the material terms and conditions must be fully and accurately disclosed at the time of advertisement. If the material terms cannot be fully disclosed within the constraints of a particular advertising medium, the material terms and conditions must be accessible by hyperlink that takes the individual directly to the material terms or directs the individual to the site to access the offer or bonus terms [4.1].

For network bingo providers, a permit is required prior to providing network bingo. The provider must submit an application and pay a $500 application fee. The provider must also be authorized to conduct business in Virginia, which may include registration with the State Corporation Commission, the Department of Taxation, and the Virginia Employment Commission. The department may refuse to issue a permit or may suspend or revoke a permit for various reasons, including failure to comply with Virginia tax laws or engaging in conduct that would compromise the department’s objective of maintaining the highest level of integrity in charitable gaming [3.2].

Conclusion

Referral bonuses are not specifically mentioned in Virginia’s regulations for contests and promotional offers. However, it is important to fully and accurately disclose the material terms and conditions of any promotional offer involving sports betting. Additionally, a license is required for “instant ticket” games or contests used for promoting or furthering the sale of any product, and a permit is required for network bingo providers.

Source(s):
Jurisdiction

Virginia