Can I offer contests that involve text message promotions in Michigan? What are the requirements?

Yes, you can offer contests that involve text message promotions in Michigan. However, there are certain requirements that you need to comply with.

Requirements for Text Message Promotions

Michigan law does not have specific provisions that address text message promotions. However, general advertising requirements apply to fantasy contest operators and advertising in Michigan ^{[1.1][1.3][2.1][1.4][1.7][1.8]}. Licensed fantasy contest operators are prohibited from employing false, deceptive, or misleading advertising, or advertising that is not based on fact [MICL 432.507]. Additionally, advertising of alcoholic liquor connected with offering a prize or award on the completion of a contest is prohibited unless approved by the commission [MIAC R 436.1321].

Fantasy Contest Operator License

If you are offering fantasy contests in Michigan, you need to be a licensed fantasy contest operator [MICL 432.503]. To ensure the integrity of fantasy contests, the board has jurisdiction over each person involved in the conduct of a fantasy contest. The board may promulgate rules related to the conduct of fantasy contests, including rules setting forth penalties for violations of this act or any rules promulgated under this act [MICL 432.503(5)]. A person seeking to be licensed as a fantasy contest operator shall submit an application, with the license fee under subsection (9), to the board [MICL 432.503(6)].

Small Raffle License

If you are conducting a raffle before which there is no presale of tickets and the total aggregate retail value of the prize or prizes to be awarded that day is $100.00 or less, you are excused from the requirements of obtaining a license under this act [MICL 432.105d(4)].

Based on the above requirements, it is recommended that any text message promotions related to fantasy contests comply with the general advertising requirements and the procedures and internal controls established by the fantasy contest operator. If you are conducting a raffle, you may be excused from the requirements of obtaining a license under certain circumstances.

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Source(s):

• [1.1] Application of Michigan penal code.
• [1.2] Fantasy contest operator license; exception; application; fee.
• [1.3] Use of script; false, deceptive, or misleading advertising; prohibit.
• [2.1] Contests and advertising articles
• [1.4] Contracts for operation and promotion of lottery; assignment; limitations; contracts for advertising or promotional material relating to club keno game; “NASCAR” defined.
• [1.5] Small and large raffle licenses; issuance.
• [1.6] Small and large raffle licenses; issuance.
• [1.7] Offering of fantasy contest; location limitations; exception.
• [1.8] Fantasy contest procedures and internal controls; board approval; confidentiality.

Jurisdiction

Michigan

• Gaming