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Can I offer contests that involve travel prizes in Washington? What are the requirements?
Based on the context documents, it is possible to offer contests that involve travel prizes in Washington. However, there are certain requirements that must be met.
Requirements for offering contests with travel prizes in Washington
- Organizations must own the prizes offered to winners before the date of the drawing [1.1].
- At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle [1.1].
- Raffle prizes must not exceed forty thousand dollars per prize or three hundred thousand dollars in total raffle prizes in a license year, except as authorized in WAC 230-11-067 [1.1].
- For enhanced raffles, a purchase contract is not necessary for smaller noncash prizes, but the bona fide charitable or nonprofit organization must be able to demonstrate that such a prize is available and sufficient funds are held in reserve in the event that the winner chooses a noncash prize [1.1].
- Charitable or nonprofit licensees conducting enhanced raffles must have an independent audit conducted on each enhanced raffle and the associated smaller raffles [1.3].
- Licensees must hire an independent, certified public accountant or firm licensed by the Washington state board of accountancy to conduct the audit [1.3].
- The licensee must submit the auditor’s report no later than sixty days following the date of the enhanced raffle grand prize drawing [1.3].
It is important to note that these requirements apply specifically to raffles and enhanced raffles. If the contest involves a different type of prize or is not a raffle, additional requirements may apply.
Additionally, unclaimed prizes must be retained in the state lottery account for the person entitled thereto for one hundred eighty days after the drawing in which the prize is won, or after the official end of the game for instant prizes. If no claim is made for the prize within this time, all rights to the prize shall be extinguished, and the prize shall be retained in the state lottery fund for further use as prizes [2.1].
Promotional contests of chance can be conducted by the director for the enhancement of ticket sales [3.1].
If raffle prizes exceed forty thousand dollars per prize or three hundred thousand dollars in a license year, the licensee must submit a raffle plan to the commission that includes specific details of the raffle rules, an explanation of how the proceeds from the raffle will be used, and a projected budget [1.2].
Before a demonstration, seminar, or sales presentation begins, the promoter shall inform the person of the prize, if any, the person will receive. A prize or a voucher, certificate, or other evidence of obligation given instead of a prize shall be given to a person at the time the person is informed of the prize, if any, the person will receive [4.1].
[1.1]: WAAC 230-11-065 [2.1]: WARC 67.70.190 [3.1]: WAAC 315-06-095 [1.2]: WAAC 230-11-067 [1.3]: WAAC 230-11-103
Source(s):
- [1.1] Raffle prizes.
- [2.1] Unclaimed prizes.
- [3.1] Promotional contests of chance.
- [1.2] Requesting commission approval prior to offering raffle prizes exceeding forty thousand dollars per prize or three hundred thousand dollars in a license year.
- [1.3] Independent audit required for enhanced raffles.
- [4.1] Disclosures—Prizes awarded—Rain checks.
Jurisdiction
Washington