[OMS_MANAGERS] Purchasing Giveaways

Tue Nov 8 14:35:55 PST 2022

Hey all,

We get around the lottery idea by adding options for people to do things
that don't require purchase. For example: Get 2 raffle tickets for a
purchase and 1 for visiting the store.

We also have a license with the gaming department that costs $100/year and
then it's another $100 for a special raffle license if you do something
with value over $2,000 I believe. We've gotten away with just that first
license so far, but if we ever have anything big like a car or $5,000 in
cash, we will definitely need that additional license. Hope that helps.

On Tue, Nov 8, 2022 at 2:29 PM Lise Grato <director at albanydowntown.com>
wrote:

> Hi Stephanie,
>
>
>
> I had the same thought yesterday and sent an email to Sheri.
>
>
>
> About 4 years ago I was concerned about our Movies at Monteith drawing
> that requires the showing of a receipt from a member business to receive a
> drawing ticket or a drawing ticket from one of our event vendors (member
> restaurants). The prize is a DVD and $20 in gift Downtown cards so the
> total value was around $30-45. With 4 movies we are at a max value of $180,
> which was under the reporting ceiling. I inquired with the state and was
> told I needed to set a value for the tickets. We did that based on the
> number of chances (tickets) and the value of the prize. So 100 tickets for
> a prize worth $40 = $0.40/ticket. Of course, I kept the email just in case
> it gets questioned in the future.
>
>
>
> After sitting through their Money Matters presentation at the OMS
> Conference I’m all for being overly cautious. Reading yesterday, I
> clarified “raffle” and licensing. It looks like if the total prize value
> for the event and the year are under $10,000, a license isn’t generally
> required for a non-profit to hold a raffle.  Here’s what I found on the Charitable
> Gaming FAQs & Resources
> <https://www.doj.state.or.us/charitable-activities/charitable-gaming/charitable-gaming-faqs/>
> page of the Oregon DOJ website that looks relevant:
>
>
>
>
>
>
>
> I don’t know if this would count toward the $10,000/yr ceiling to not need
> a license.
>
>
>
> Looking elsewhere on the web I find other issues to consider:
>
>
>
> Q: Can you require a purchase to enter a giveaway?
>
> *A: It's illegal in the United States to run a giveaway that requires a
> purchase or a membership to enter*. That's why, when you read sweepstakes
> rules, you'll see terms like: "No purchase necessary," "No purchase
> necessary to enter or win," or "a purchase will not affect your chances of
> winning."
>
> Source
> <https://www.liveabout.com/no-purchase-necessary-to-enter-definition-4126050>
>
>
>
> There was a webinar on this subject during Covid. I might be able to find
> my notes, but getting the official info from DOJ would be best.
>
>
>
> Thank you,
>
>
>
> Lise Grato
>
> Executive Director
>
>
>
> Albany Downtown Association
>
> 126 Ferry Street SW
>
> Albany, OR 97321
>
> www.albanydowntown.com
>
> W: (541) 928-2469
>
> C: (541) 905-2908
>
>
>
>
>
> *From:* OMS_MANAGERS <oms_managers-bounces at omls.oregon.gov> *On Behalf Of
> *Stephanie Wilson
> *Sent:* Tuesday, November 8, 2022 2:09 PM
> *To:* Oregon Main Street Network Members <oms_managers at omls.oregon.gov>
> *Subject:* [OMS_MANAGERS] Purchasing Giveaways
>
>
>
> Hello Everyone,
>
>
>
> I was curious how you are running your interactive purchasing giveaways,
> to not be considered a lottery.
>
> For instance when you say (spend this amount and get a punch or shop and
> bring in receipt to be entered, for your chance to win)…..  From my
> understanding this is considered a lottery.  Since you are telling them
> they have to spend money in order to be entered for a chance to win, with
> no guarantee of winning.
>
>
>
> Where as if they don’t have to spend money but still have to do a task
> (for instance come in and sign up, or take a selfie, vote your favorite
> decorated businesses, etc.) with a chance to win… its different, because no
> purchase is necessary to win.
>
>
>
> If you’re asking them to “spend money” with a guarantee of something, even
> if it’s a small trinket etc., then I believe you are safe, because you are
> guaranteeing they get something after purchasing X amount.  I think if you
> state how many are guaranteed to win a prize ahead of time like “while
> supplies last” or what not, I believe this may be ok because you are
> stating rules up front ( but don’t quote me on that)
>
>
>
> Not trying to be a bummer or anything, I wish they just made it easy for
> us to do our jobs to help promote small businesses.  These are just how I
> understand the rules to be, so I am interested on how you all run your
> giveaways to be compliant, and still drive sales to our small businesses.
>
>
>
> If a promotion is being ran through a non-profit then maybe it changes
> things?  Making all those rules not applicable to the Main Street Non
> Profit, where as if through a business it would be different.  My program
> is new and we are planning, so I’m genuinely looking for advice moving
> forward, any helpful tips or links would be greatly appreciated.
>
>
>
>
>
> Sincerely,
>
> Stephanie
>
>
>
>
>
> Stephanie Wilson
>
> North Bend Main Street Manager
>
> 1380 Sherman Ave.
>
> W(541)756-4613
>
>
>

-- 
Liz Hannum
Executive Director

Downtown Oregon City Association
814 Main Street
<https://maps.google.com/?q=814+Main+Street+Oregon+City,+OR+97045&entry=gmail&source=g>
Oregon City, OR 97045
<https://maps.google.com/?q=814+Main+Street+Oregon+City,+OR+97045&entry=gmail&source=g>

liz at downtownoregoncity.org <jon at downtownoregoncity.org>
Office (503) 802-1640
Direct (503) 802-1638

fb.com/downtownoc <http://www.fb.com/downtownoc>
downtownoregoncity.org <http://www.downtownoregoncity.org/>

Subscribe to our email list for:
Property and Business Owners and Volunteers <http://eepurl.com/HBw0D>
Downtown Events and Promotions <http://eepurl.com/HvgAX>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://omls.oregon.gov/pipermail/oms_managers/attachments/20221108/d19f461b/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 129399 bytes
Desc: not available
URL: <https://omls.oregon.gov/pipermail/oms_managers/attachments/20221108/d19f461b/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 42850 bytes
Desc: not available
URL: <https://omls.oregon.gov/pipermail/oms_managers/attachments/20221108/d19f461b/attachment-0003.png>