As used in this chapter, unless the context otherwise requires:
(1) “Prize” means a gift, award, or other item or service 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 Arkansas in the preceding year; or
(B) If the sponsor is unable to satisfy the requirement in subdivision (2)(A) of this section, then no more than one and one-half (1.5) times the amount the sponsor paid for the prize in a bona fide purchase from an unaffiliated seller; and
(3) “Sponsor” means a corporation, partnership, limited liability company, sole proprietorship, or natural person that offers a prize or information about a prize to a person in Arkansas in conjunction with the sale or lease of any product or service, or offers a prize or information about a prize in conjunction with any real or purported contest, competition, sweepstakes, puzzle, drawing, scheme, plan, or other selection process that requires, or creates the reasonable impression of requiring, or allows the person to pay any money as a condition of receiving, or in conjunction with allowing the person to receive, use, compete for, or obtain a prize or information about a prize.