If the giveaway requires that participants open an account with the bank in order to enter, we believe it would violate both federal and Illinois lottery prohibitions. However, it is possible to structure a giveaway so that no payment or purchase is required to make an entry, and so that it is open to customers and non-customers alike. In that case, note that Illinois laws still impose disclosure requirements for “promotional prize offers,” which we discuss in the final paragraph below.

• The Federal Reserve Act prohibits banks from dealing in or publicizing a lottery. It defines a “lottery” as an arrangement in which participants “advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the participants (the ‘winners’) will receive by reason of their advances more than the amounts they have advanced.” 12 USC 339. If your institution requires the giveaway participants to open a new account, which would involve advancing money or credit to the bank, then the giveaway would be considered a lottery.
• In addition, the giveaway also runs the risk of violating the Illinois Criminal Code’s prohibition on gambling. That law defines “lottery” 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). While there is an exception for games in which “money or other things of value can be won but no payment or purchase is required to participate,” we do not believe the exception would apply to the facts you have given us. 720 ILCS 5/28-1(b)(13). Because the giveaway participants would be required to open an account with the bank to enter the giveaway, which would involve making a payment or purchase, we do not believe that the exemption would apply.

As we noted above, it is possible to design a giveaway that complies with the Illinois and federal laws discussed above. The giveaway should be open to both customers and non-customers, and no payment or purchase should be required to enter. However, note that other Illinois laws impose disclosure requirements on promotional giveaways. The Illinois Prizes and Gifts Act prohibits any requirement of payment as a condition to winning, competing for, or obtaining information about a prize. 815 ILCS 525/20(a). The Act also specifies nine disclosures which must be made in a written promotional prize offer. 815 ILCS 525/25. The Consumer Fraud and Deceptive Practices Act prohibits advertising any business by offering free prizes to a consumer unless all material terms and conditions relating the offer are clearly and conspicuously disclosed at the outset of the offer. 815 ILCS 505/2P.