§ 53-11-01 — Definitions

As used in this chapter, unless the context otherwise requires:
1. "Prize" means an item or service of value that is offered or awarded to a participant in
a real or purported contest, competition, sweepstakes, puzzle, drawing, scheme, plan,
or other selection process.
2. "Retail value" of a prize means:
a. A price at which the sponsor can substantiate that a substantial number of the
prizes have been sold to the public in this state during the preceding year; or
b. If the sponsor is unable to satisfy the requirement in subdivision a, then no more
than one and one-half times the amount the sponsor paid or would pay for the
prize in a bona fide purchase from an unaffiliated seller.
3. "Sponsor" means a person that requires another person in this state to pay money as
a condition of awarding the person a prize, or as a condition of allowing the person to
receive, use, compete for, or obtain information about a prize, or that creates the
reasonable impression that such a payment is required.