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Can I offer contests that involve travel prizes in North Dakota? What are the requirements?
Based on the additional context documents, it appears that contests that involve travel prizes are allowed in North Dakota, but there are certain requirements that must be met.
Prize Restrictions and Requirements
According to NDAC Section 99-01.3-05-03 [2.2], a prize must be an item that may be legally owned and possessed and has a value or a right to a free service. Therefore, the travel prize offered must be legal and have a value or right to a free service.
Reporting Gross Proceeds and Prizes
NDAC Section 99-01.3-05-06 [2.1] requires organizations to report gross proceeds and prizes. If the sales price of a raffle ticket relates partly to admission for a meal or other nongaming activity, an organization shall deposit the total receipts into its gaming account and allocate the amount between gaming and nongaming activity. An amount is allocated to raffle gross proceeds equal to the cost of the prize. The remaining amount is allocated to raffle gross proceeds. Therefore, the organization must report the gross proceeds and the value of the travel prize offered.
Conclusion
In conclusion, contests that involve travel prizes are allowed in North Dakota as long as the prize is legal and has a value or right to a free service. The organization must also report the gross proceeds and the value of the travel prize offered.
Source(s):
Jurisdiction
North Dakota