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I am looking for specific information regarding fantasy sports,

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or more importantly, fantasy type...
I am looking for specific information regarding fantasy sports, or more importantly, fantasy type games and running a pool for charity.

I plan on having a free game to enter and host a set of prizes. The game will not be stats based but would be "pick winners" type of games. Easier the better.

I will present the prizes before anyone enters. i will additionally seek donations. Donations would not be necessary to enter but will be asked for throughout the process. I think this is a promotional contest.

- How would this be classified? Promotional giveaway?
- Do i need to charge in order for this to be considered a contest (or promotional giveaway?)?
- Would these states be disqualified?
ARIZONA, IOWA, LOUISIANA, MARYLAND, MONTANA, NORTH DAKOTA, TENNESSEE, VERMONT, AND WASHINGTON STATE.

Lastly, if i am getting a sponsor to sponsor an additional giveaway - (my bar might offer a 2 for 1 special for everyone involved?) would this be needed PRIOR to the game, or since everyone is eligiable, can i have people opt in once registration has started?
Submitted: 5 years ago.Category: Business Law
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Answered in 13 hours by:
5/2/2012
Business Lawyer: Fran-mod,
 replied 5 years ago
Fran-mod
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Hi, I’m a moderator for this topic and I wonder whether you’re still waiting for an answer. If you are, please let me know and I will do my best to find a Expert to assist you right away. If not, feel free to let me know and I will cancel this question for you. Thank you!
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Customer reply replied 5 years ago
still waiting, thanks
Business Lawyer: Fran-mod,
 replied 5 years ago
Sometimes, finding the right Expert can take a little longer than expected and we thank you greatly for your understanding. We’ll be in touch again shortly.
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Business Lawyer: Law Educator, Esq., Attorney replied 5 years ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 121,090
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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Do you have a non-profit corporation already formed that you will be running this under?
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Customer reply replied 5 years ago

Sorry. the game would be operated with a for profit company (ad supported) and all donations would go through a DAF (donor advised foundation - non profit)

 

Business Lawyer: Law Educator, Esq., Attorney replied 5 years ago
If you are charging nothing to enter these contests, then they are promotional as you have stated. However, some states, RI in particular make them very difficult for any promotional contest where the prize is more than $500 and you have to register with the Secretary of State (which is why most contests of this nature simply say they are void in RI, because of the hassle of registering) See: RI Gen. Laws 11-50-1. Other states like NY and FL require registration with the Secretary of State only if the giveaway is greater than $5000. Iowa bans these promotional contests if they require a "substantial expenditure of effort" to enter and of course that is subjective and ill defined by the court. Alabama allow promotional giveaways and sweepstakes without any payment to enter.

I am afraid however, that the scope of this service does not allow us to research each and every state's law for you that you have mentioned above because of the cost involved and because many states have rules that depend on exactly what you are giving away as well. Thus once you have your contest and prizes set you have to sit with a local attorney that will have to research each state to make the final determination.


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