IBA Compliance Connection

Your go to source for compliance!

Does Illinois have a law similar to the federal American Savings Promotion Act that authorizes banks to conduct savings promotion raffles?

—

by

admin

Yes, Illinois has enacted a law that essentially mirrors the American Savings Promotion Act, which created an exception for savings promotion raffles from the lottery prohibitions in federal banking and criminal laws. Effective January 1, 2016, Illinois law similarly authorizes state-chartered banks, savings banks and credit unions to conduct savings promotion raffles.

For resources related to our guidance, please see:

  • National Bank Act,12 USC 25a(c)(2) (“The term ‘lottery’ includes any arrangement, other than a savings promotion raffle. . .”)
  • National Bank Act,12 USC 25a(c)(4) (“The term ‘savings promotion raffle’ means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regulations that may from time to time be promulgated by the appropriate prudential regulator (as defined in section 5481 of this title).”)
  • Illinois Criminal Code, 720 ILCS 5/28-1(b)(14) (exempts savings promotion raffles from the definition of “lottery”)
  • Raffles and Poker Runs Act, 230 ILCS 15/1 (exempts savings promotion raffles from the definition of “raffle”
  • Illinois Banking Act, 205 ILCS 5/5g (permits banks to conduct savings promotion raffles)
  • Illinois Savings Banking Act, 205 ILCS 205/7008 (permits savings banks to conduct savings promotion raffles)