If you allow everyone to enter the lottery for free, including customers and non-customers alike, we do not believe that the sweepstakes would fall into either the state or federal definition of a “lottery.” The Federal Deposit Insurance Act prohibits banks from dealing in any lottery, defined as an arrangement in which participants “advance money or credit” for a chance to win a prize. 12 USC 1829a(c)(2). And the Illinois Criminal Code defines lotteries as “any scheme or procedure whereby one or more prizes are distributed by chance among persons who have paid or promised consideration for a chance to win such prizes . . . .” 720 ILCS 5/28-1(a)(9), (1)720 ILCS 5/28-2(b). If all lottery entries are free, and no one gives the bank any money, credit, or consideration in any form, then the sweepstakes would not be considered a lottery.

However, we believe that the Federal Deposit Insurance Act would prohibit you from collecting money or credit from customers in exchange for additional sweepstakes entries. While the sweepstakes might be exempted under the Illinois Criminal Code’s exception of lotteries in which no payment or purchase is required to participate (720 ILCS 5/28-1(b)(13)), the FDIA does not contain a similar exception. If participants advance money in return for extra chances to win the prize, then the sweepstakes would likely fall into the FDIA’s definition of prohibited lotteries.

We also recommend that you consult with the FDIC or bank counsel before going ahead with a sweepstakes, as we cannot provide any legal advice.