Yes, we believe that you may impose a minimum age for entries into the giveaway, provided that you do not impose any other requirements for entries. And we do not believe you will need to issue an IRS Form 1099-MISC for the prize, since its value is below $600.
To comply with state and federal law, the giveaway should be open to customers and noncustomers, and participants should not be required to advance any money or credit in order to participate. In addition, the Illinois Prizes and Gifts Act requires nine specific disclosure to be made with any written promotional prize offer, and the Consumer Fraud and Deceptive Business Practices Act requires you to clearly and conspicuously disclose all material terms and conditions relating to the prize at the outset of the offer.
For citations related to our guidance, please see below:
- Federal Deposit Insurance Act — 12 USC 1829a(c)(2) (lottery prohibition, defining “lottery” as an arrangement where participants advance money or credit in exchange for a chance to win)
- Illinois Criminal Code
- 720 ILCS 5/28-2(b) (defines “lottery”)
- 720 ILCS 5/28-1(b)(13) (exemption for drawings where money or things of value can be won but no payment or purchase is required to enter)
- Illinois Prizes and Gifts Act — 815 ILCS 525/20 (disclosure requirements for written promotional prize offers)
- Consumer Fraud and Deceptive Business Practices Act — 815 ILCS 505/2P (requires all material terms and conditions to be clearly and conspicuously disclosed)
- IRS Webpage, Form 1099-MISC