"In your letter of May 12, 1998 you requested information on requirements for holding an essay contest in Montana. The issue of essay contests has not been litigated in Montana and so we must turn to existing gambling and promotional games of chance statutes and rules for guidance. In addition, there may be other statutes and rules under the Montana Department of Commerce that apply to the sale and disposition of real property. I suggest that you contact them directly at:
BR>
Montana Department of Commerce
Legal Services Division
1424 Ninth Avenue
P.O. Box 200501
Helena MT 59620-0501
"This letter is not an official or formal Montana Attorney General Opinion, cannot be construed as a final agency opinion, nor does this letter represent the Division's complete analysis of any proposed contest. If you have additional information regarding the proposed legality of any or all proposed variations of these
contests, or have matters that might justify the legality of the contests, please forward the documentation, materials, or response to the department in writing."
"If you wish to receive a copy of Montana's statutes and rules governing gambling and promotional games of chance please submit a request in writing and a check for $10 made out to the State Treasurer. You may also access and download a copy of the statutes and rules from the Montana Department of Justice website at
www.doj.mt.gov. Simply click on the Who We Are button and then click on gambling control."
"Having said all that I will attempt to answer what I can of your questions. You have indicated that these essay contests will be advertised/promoted on the Internet. Montana considers gambling on the Internet an illegal activity and therefore prohibited for Montana residents. If your contest qualifies as gambling such activity on the Internet would be considered illegal."
"Essay contests may or may not be considered gambling, depending on how they are set up, under Montana statute and rules. Montana statutes define gambling gift enterprises and raffles as:
"(11) 'Gambling' or 'gambling activity' means risking money, credit, deposit, check, property, or any other thing of value for a gain that is contingent in whole or in part upon lot, chance, or the operation of a gambling device or gambling enterprise.
(13) 'Gambling enterprise' means an activity, scheme, or agreement or an attempted activity, scheme, or agreement to provide gambling or a gambling device to the public.
(14) 'Gift enterprise' means a gambling activity in which persons have qualified to obtain property to be awarded by purchasing or agreeing to purchase goods or services.
(32) 'Raffle' means a form of lottery in which each participant pays valuable consideration for a ticket to become eligible to win a prize. Winners must be determined by a random selection process approved by department rule."
"Given those definitions, every proposed essay, poetry, or questionnaire we have reviewed has included an element of chance and therefore qualified as an illegal gambling enterprise."
"Gift enterprises are prohibited by constitution and statute. Raffles are a legal gambling activity in Montana with a prize payout limit of $5,000 for a profit operation and no prize limit for a non-profit."
"Questions regarding taxation of contests, prizes or winners should be directed to the Director, Montana Department of Revenue, Box 202701, Helena, MT 59620-2701."
"If you have any further questions or concerns please don't hesitate to contact me."
State of Montana
Department of Justice
Gambling Control Division
2550 Prospect Avenue
P.O. Box 201424
Helena, MT 59620-1424
(406) 444-1971
Montana Legal Links
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