Why are contest void in Rhode Island?

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  • 1 decade ago
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    Some contests, such as raffles, are subject to rules and laws within the commonwealth of Rhode Island which would cause the Contest Company to pay additional fees and or taxes to the Goverenment. Making the contest Void in that area means that the Contest Company will not have to pay the State Government.

    In addition, some states have laws prohibiting contests of certain natures in their areas.

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  • 1 decade ago

    Rhode Island has a special rule as far as games of chance are concerned, a statute, Section 11-50-1 is to blame!

    "Most states have the same basic rules, so most national contests are valid. Rhode Island is unique because the state law actually requires the company to file a legal statement before it can run a contest in that state. The statute, Section 11-50-1 of Rhode Island General Laws, reads:

    'Any person, firm, or corporation proposing to engage in any game, contest, or other promotion or advertising scheme or plan in which a retail establishment offers the opportunity to receive gifts, prizes, or gratuities, as determined by chance, in order to promote its retail business, where the total announced value of the prizes offered to the general public is in excess of five hundred dollars ($500), must file a statement with the secretary of state.'"

    If the contest is void in RI, it means that the folks running the contest didn't file their statement with the secretary of state. The filing not only takes effort, but costs $150, and failing to file can result in misdemeanor charges.. so no wonder it's easier to exclude that Rhode Island from such contests.

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  • 1 decade ago

    yeah what marv said.....

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