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Can I offer contests that involve travel prizes in Rhode Island? What are the requirements?

Based on the documents provided, it appears that contests involving travel prizes are not explicitly prohibited in Rhode Island. However, there are certain requirements that must be met in order to conduct such contests.

Requirements for Contests in Rhode Island

  1. Posting of Available Prizes: Any person, firm, or corporation engaging in any promotion or advertising game or contest must cause to be posted in a conspicuous and prominent location in every retail establishment offering the opportunity to participate in the game or contest the minimum number and value of prizes available to be won over a stated period of time and slated geographic area, and the rules and regulations pertaining to the promotion or advertising scheme or plan and the names and addresses of prize winners. Failure to cause this posting shall be a misdemeanor. [3.1]
  2. Taxation: Amounts received from or paid on behalf of the Rhode Island Lottery as winnings and prizes are taxable under the provisions of the Rhode Island personal income tax. [4.1][4.2]
  3. Withholding: Winnings and prizes received from the Rhode Island Lottery and from pari-mutuel betting licensees in Rhode Island are subject to withholding provisions similar to 26 C.F.R. § 31.3402(q)-1 (2018). In order to receive a credit for Rhode Island taxes withheld, a taxpayer will be required to attach a copy of the W-2G to the Rhode Island tax return beginning with filings for any tax year ending on or after July 1, 1989. [4.2]
  4. Regional Tourism Districts: The state of Rhode Island is divided into seven (7) regional tourism districts to be administered by the tourism council, convention and visitor’s bureau, or the Rhode Island commerce corporation established in chapter 64 of this title as designated in RIGL 42-63.1-5. Before receiving any funds under this chapter, the organizations designated to receive the funds on behalf of the South County regional tourism district and the Northern Rhode Island regional tourism district shall be required to apply to and receive approval from the Rhode Island commerce corporation pursuant to guidelines promulgated by the Rhode Island commerce corporation. The corporation shall review the eligibility of the regional tourism district organizations to receive the funds at least annually. [5.1]

Conclusion

Based on the documents provided, it appears that contests involving travel prizes are not explicitly prohibited in Rhode Island. However, there are certain requirements that must be met in order to conduct such contests. These requirements include posting of available prizes, taxation, withholding, and compliance with regional tourism district regulations.

Source(s):
Jurisdiction

Rhode Island