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Can I offer contests that involve website promotions in Vermont? What are the requirements?
Based on the provided context documents, it appears that offering contests that involve website promotions in Vermont may fall under the category of fantasy sports contests. Here are the requirements for offering fantasy sports contests in Vermont:
Requirements for Offering Fantasy Sports Contests in Vermont
- Registration: Fantasy sports operators must file an annual registration with the Vermont Secretary of State on a form adopted for that purpose and pay an annual registration fee of $5,000.00 [2.2].
- Exemption: The provisions of 13 V.S.A. chapter 51, relating to gambling and lotteries, shall not apply to a fantasy sports contest [2.5].
- Definitions: Fantasy sports contests are virtual or simulated sporting events governed by a uniform set of rules adopted by a fantasy sports operator in which a fantasy sports player may earn one or more cash prizes or awards, the value of which a fantasy sports operator discloses in advance of the contest. The outcome is determined by the number of fantasy points earned, and the outcome is not determined by the score, the point spread, the performance of one or more teams, or the performance of an individual athlete in a single real-world sporting event [2.3].
Additionally, based on the provided context documents, here are some requirements for offering contests that involve website promotions in Vermont outside of the fantasy sports context:
Requirements for Offering Contests that Involve Website Promotions in Vermont
- Fair and Truthful Advertising: A fantasy sports operator shall not depict in an advertisement to consumers in this State minors, other than professional athletes who may be minors, students, schools or colleges, or school or college settings, provided that incidental depiction of nonfeatured minors does not violate this section. A fantasy sports operator shall not state or imply in an advertisement to consumers in this State endorsement by minors, other than professional athletes who may be minors, collegiate athletes, colleges, or college athletic associations. A fantasy sports operator shall only make representations concerning winnings that are accurate, not misleading, and capable of substantiation at the time of the representation. For purposes of this subsection, an advertisement is misleading if it makes representations about average winnings without equally prominently representing the average net winnings of all players. [2.4]
- Consumer Protection: A fantasy sports operator shall adopt commercially reasonable policies and procedures to prevent participation in a fantasy sports contest it offers to the public with a cash prize of $5.00 or more by the fantasy sports operator, an employee of the fantasy sports operator or a relative of the employee who lives in the same household, or a professional athlete or official who participates in one or more real-world sporting events in the same sport as the fantasy sports contest. A fantasy sports operator shall require that a fantasy sports player is 18 years of age or older, and verify the age of each player using one or more commercially available databases, which government or business regularly use to verify and authenticate age and identity. A fantasy sports operator shall limit and disclose to prospective players the number of entries a fantasy sports player may submit for each fantasy sports contest. A fantasy sports operator shall limit a fantasy sports player to not more than one username or account. A fantasy sports operator shall prohibit the use of computer scripts that provide a player with a competitive advantage over another player. A fantasy sports operator shall segregate player funds from operational funds, or maintain a reserve in the form of cash, cash equivalents, payment processor receivables, payment processor reserves, an irrevocable letter of credit, a bond, or a combination thereof in an amount that equals or exceeds the amount of deposits in fantasy sports player accounts, for the benefit and protection of fantasy sports player funds held in their accounts. A fantasy sports operator shall notify fantasy sports players that winnings of a certain amount may be subject to income taxation. [2.1]
Based on the provided context documents, these are the requirements for offering contests that involve website promotions in Vermont. If you have further questions or concerns, it is recommended that you consult with a legal professional.
Source(s):
- [2.1] Consumer protection
- [2.2] Registration
- [2.3] Definitions
- [2.4] Fair and truthful advertising
- [2.5] Exemption
Jurisdiction
Vermont