I wish to run an event within the state of Virginia.
The event requires that participants bring the equipment necessary to compete and pay an entry fee. Each participant is given a number for both the event and prize draw. Everyone attending this event has an equal chance to win the door prizes.
I want to randomly award prizes, but I a having trouble narrowing this down. Laws and rules for door prizes appear few and far between. Changing the prizes to a gift card or store credit does not seem to solve the issue, but I could be wrong. I am not selling tickets/entry for the prizes, anyone that enters the event is eligible for said prize drawing at the end of the event.
Is there no legal way to distribute prizes by drawing or chance within the state of Virginia?
Relevant excerpt regarding raffle tickets and drawings in the state
"Raffle" means a lottery in which the prize is won by (i) a random drawing of the name or prearranged number of one or more persons purchasing chances or (ii) a random contest in which the winning name or preassigned number of one or more persons purchasing chances is determined by a race involving inanimate objects floating on a body of water, commonly referred to as a "duck race."
And further info
§ 18.2-340.26 Sale of raffle tickets; drawings
A. Except as provided in subsection B, a qualified organization may sell raffle tickets both in and out of the jurisdiction designated in its permit and shall conduct the drawing within the Commonwealth.
B. A qualified organization may sell raffle tickets for a raffle drawing which will be held outside the Commonwealth, provided the raffle is conducted in accordance with (i) the regulations of the Board and (ii) the laws and regulations of the jurisdiction in which the raffle drawing will be held.
C. Before a prize drawing, each stub or other detachable section of each ticket sold or won through some other authorized charitable game conducted by the same organization holding the raffle, shall be placed into a receptacle from which the winning tickets are drawn. The receptacle shall be designed so that each ticket placed in it has an equal chance of being drawn.