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Can I offer contests that involve website promotions in Virginia? What are the requirements?

Requirements for Offering Contests with Website Promotions in Virginia

If you want to offer contests that involve website promotions in Virginia, you must comply with the state’s Fantasy Contests Act [5]. This law requires every person or entity that offers fantasy contests for a cash prize to members of the public to register with the Office of Charitable and Regulatory Programs (OCRP) prior to operating any contest in accordance with Virginia’s Fantasy Contests Act.

To register, you must submit Form 501 – Fantasy Contest Operator Registration Application [5]. Additionally, you must provide the following information:

  • The name and address of the operator
  • The name and address of the agent authorized to receive service of process in Virginia
  • The name and address of the financial institution(s) where the operator maintains a player account
  • The name and address of the independent third-party auditor who will conduct an annual audit of the operator’s operations
  • The rules of the fantasy contest(s) offered by the operator
  • The method used to determine winners and award prizes
  • The maximum number of entries that any one player may submit to each fantasy contest offered by the operator
  • The procedures used to verify the age and location of players
  • The procedures used to prevent employees and relatives of employees of the operator from participating in the fantasy contest(s)
  • The procedures used to prevent players from participating in the fantasy contest(s) if they are not physically located in Virginia

Once you have registered with OCRP, you must comply with the following requirements:

  • You must prominently display the following statement on your website: “This fantasy contest is not sponsored by or affiliated with any professional sports team or league. This fantasy contest is void where prohibited by law.”
  • You must verify that each player is at least 18 years old and physically located in Virginia at the time of entry.
  • You must maintain a separate player account for each player.
  • You must not allow employees and relatives of employees of the operator to participate in the fantasy contest(s).
  • You must not allow players to participate in the fantasy contest(s) if they are not physically located in Virginia.

If you fail to comply with these requirements, you may be subject to civil penalties and other enforcement actions [5].

In summary, if you want to offer contests that involve website promotions in Virginia, you must comply with the state’s Fantasy Contests Act, which requires registration with OCRP and compliance with various requirements to ensure the fairness and integrity of the contests.

Source(s):
Jurisdiction

Virginia