Basic State Laws of Online Contests

State Law Basics of Online Contests

Internet contests accessible to the residents of the 50 states must comply with the rules and the law of each and every state. There are some rules that are applicable to all states and therefore the contest should comply with these rules. If the contest is directed and accessible by anyone in the world, then the contest must also comply with the rules of every country where it is accessible. The official rules of every contents should include the entry instructions, the sponsor’s name, the address of the sponsor, eligibility and geographical limitations, odds of winning, prize descriptions, the approximate retail value of the prizes, the contest duration, the entry deadlines, and how and when the winners will be selected, the limitations of liability on the part of the sponsor, disclaimer for lost, late or damaged entries, and publication of the winners’ list and awarding of all the prizes. There are also special rules in Arizona, New York, Rhode Island, and Florida. In Arizona contests of skill must be registered with the state attorney general’s office. Florida and New York require a bond be posted and the game registered where the contest is one of chance and the total value of the prizes is $5,000 or more. Rhode Island requires registration where the contest runs through retail outlets and the value is $500 or more, this would most likely include all virtual and internet stores. The phrase “void where prohibited” or “void in Florida, New York, and Rhode Island” is often used as a means to avoid having to comply with the tedious rules of those states.

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