Can I offer contests that involve VIP programs in South Carolina? What are the requirements?

Based on the documents provided, it is unclear whether contests that involve VIP programs are allowed in South Carolina. However, nonprofit organizations are allowed to conduct raffles in accordance with the provisions of SCCL 33-57-120 and SCCL 33-57-130.

Requirements for Nonprofit Raffles

According to SCCL 33-57-120, a nonprofit organization is qualified to conduct raffles in South Carolina if it meets certain requirements, including being recognized by the South Carolina Department of Revenue and the United States Internal Revenue Service as exempt from federal and state income taxation and being organized and operated for religious, charitable, scientific, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals. Nonprofit organizations that comply with the requirements of SCCL 33-57-120 and intend to operate a raffle must submit an annual raffle form with a fee of fifty dollars to the Secretary.

Restrictions on Nonprofit Raffles

According to SCCL 33-57-130, a nonprofit organization is allowed to operate up to four raffles per year, and each nonprofit raffle shall continue for not more than nine months from the date the first raffle ticket is sold. No raffle drawing shall be conducted between the hours of midnight and 10 a.m. Local law enforcement officials are authorized to enforce the hours of operation. The restriction on numbers of raffles shall not apply to raffles held by nonprofit organizations that are exempt pursuant to SCCL 33-57-120(B)(2).

Financial institutions should review the law and seek legal advice to ensure compliance.

^[2.1][2.3]

Source(s):

• [2.1] Nonprofit organization qualification to conduct raffles; exemptions; annual raffle form and fee; revocation of registration; investigation.
• [2.3] Raffle restrictions.

Jurisdiction

South Carolina

• Gaming