 | John Gibson
is a senior partner in the Wichita law firm of Gilliand & Hayes. He has been practicing law for nearly 30 years. In addition to healthcare law his practice includes wills, trusts, estate planning, probate and general representation of individuals and small business. Contact information: Phone:
316-264-7321; Fax: 316-264-8614; and e-mail: jgibson@boyerds.com |
Legal
2002-04-01 16:17:00
Why Rhode Island?
Question: Why are many national contests in the United States void in Rhode Island? What does "void where prohibited" mean?
Answer: Lottery winners' entitlement to a prize is governed by principles of contract law. The existence of the contract is governed by the concepts of offer and acceptance. For instance, one who purchases a lottery ticket or enters a sweepstake has the burden to read and understand the rules before accepting by purchasing a ticket or completing an entry form. Many states, through their constitutions or statutes, outlaw specific games or contests of chance like lotteries. National sweepstakes mailings and lottery tickets often contain the disclaimer, "void where prohibited" to alert prospective participants in those states that the contest or lottery might not be valid in their state. In such states, although a contestant may have actually won a nationally sponsored contest or lottery, the entry or ticket is not valid, because the game is illegal in that state. Rhode Island is just such a state and outlaws not only private lotteries, but also many other types of promotions that may only faintly resemble games of chance. Therefore, many contests are void within its borders. Rhode Island even regulates individual business door prizes if the amount is over $500.00. In Kansas it is legal to participate in lotteries and sweepstakes games. Thus, the "void where prohibited" language does not apply to Kansas.Some states, including Rhode Island, have also enacted prize promotion statutes that restrict permissible advertising language and protect consumers against promoters' misrepresentations. These type of statutes prohibit promoters from utilizing mailer language like "congratulations," "you have won," and "you are the winner of…," unless the contestant actually won and will receive the prize or gift shortly after receiving the communication. Such statutes typically require mandatory disclosure of prize value, promoter identity, number of prizes available, odds of winning, and the language "no purchase required."In 1994, the Kansas legislature also enacted a prize promotion statute which requires similar disclosures. Potential contestants and hopeful winners should look and listen beyond the promoters' attention grabbing lines. They should read the fine print and ask questions in order to make an informed entry decision. Knowledge can be more powerful than blind luck.
