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

Yes, you can offer contests that involve travel prizes in Virginia. However, there are certain requirements that must be met.

Requirements for Offering Contests with Travel Prizes in Virginia

  • Registration Requirements for Fantasy Contest Operators: Fantasy contest operators must register with the Virginia Department of Agriculture and Consumer Services and pay a nonrefundable, initial application fee. As a condition of registration, operators must implement procedures for fantasy contests that meet certain requirements, such as verifying that any fantasy contest player is 18 years of age or older and segregating player funds from operational funds in separate accounts. [3.1]
  • Unclaimed Prizes: Unclaimed prizes for a winning ticket or share shall be retained by the Director for the person entitled thereto for 180 days after the drawing in which the prize was won in the case of a drawing prize and for 180 days after the announced end of the lottery game in the case of a prize determined in any manner other than by means of a drawing. If no claim is made for the prize within the 180 days, the Director shall deem such prize forfeited by the person entitled to claim such winnings. All prizes deemed forfeited shall be paid into the Literary Fund. [2.2]
  • Voluntary Assignment of Lottery Prizes or Pledge as Collateral for a Loan: If you plan to offer contests that involve travel prizes, you may need to follow the requirements for voluntary assignment of lottery prizes or pledge as collateral for a loan. This includes a written contract affirming that the requirements have been met and endorsed by written order of a court of competent jurisdiction after a hearing. The contract must also include certain provisions, such as a disclosure statement and a statement that the assignor or borrower has three business days after signing the contract to cancel the assignment or loan. [2.3]
  • Retailers’ Prize Payment Procedures: Retailers may pay cash prizes in cash, by certified check, cashier’s check, business check, money order, other cash equivalent, or by any combination of these methods. During normal business hours of the lottery retailer with operational validation equipment by which the ticket claim can be validated, a lottery retailer shall pay any lottery prize of $600 or less, unless otherwise determined by the director, regardless of the location from which the winning ticket was purchased. A prize claim shall be paid only at the location specified on the retailer’s license or at a lottery office. [1.3]
  • Using Winners’ Names and Information: The agency can use a winner’s name and the city, town, or county in which a winner lives, as well as the prizes won, for public information purposes and to foster the integrity of the games. The agency may require prize winners to participate in news conferences. The agency can use the winner’s information described in this section and winner’s photographs for public information or promotional purposes in mediums such as, but not limited to, the agency’s website, social media, in-store, television, Internet, and radio. [1.4]
  • License Required for “Instant Ticket” Games or Contests: No person who owns or is employed by any retail establishment in the Commonwealth shall use any “instant ticket” game or contest for the purpose of promoting or furthering the sale of any product without first obtaining a license to do so from the Director. For the purposes of this section, an “instant ticket” game or contest means a game of chance played on a paper ticket or card where (i) a person may receive gifts, prizes, or gratuities and (ii) winners are determined by preprinted concealed letters, numbers, or symbols which, when exposed, reveal immediately whether the player has won a prize or entry into a prize drawing, but shall not include any “instant ticket” game or contest licensed by the Department of Agriculture and Consumer Services pursuant to Article 1.1:1 (§ 18.2-340.15 et seq.) of Title 18.2. The fact that no purchase is required in order to participate shall not exclude such game or contest from the provisions of this section. [2.1]
  • Agency Action on Claims for Prizes Submitted to Agency: The agency shall validate the winning ticket claim according to procedures contained in this chapter. If the claim cannot be validated, the agency will promptly notify the ticket holder. If the claim is mailed to the agency and the agency validates the claim, a check for the prize amount, merchandise, or experiential prizes will be presented or mailed to the winner. If an individual presents a claim to the agency in person and the agency validates the claim, a check for the prize amount, merchandise, or experiential prizes will be presented to the winner. [1.2]

In summary, to offer contests that involve travel prizes in Virginia, you must follow the registration requirements for fantasy contest operators, ensure that all prizes are claimed within 180 days, follow the requirements for voluntary assignment of lottery prizes or pledge as collateral for a loan, follow retailers’ prize payment procedures, and comply with the rules for using winners’ names and information. Additionally, if you plan to use “instant ticket” games or contests, you must obtain a license from the Director.

Source(s):
Jurisdiction

Virginia