Can we hold a giveaway that requires participants to come to a bank branch in order to enter for a chance to win? And can we give prizes to participants who win games at the bank, such as a guessing the amount of candy in a jar?

Under Illinois law, the issue is whether the participants in your promotion — coming into a branch, filling out a survey, or playing a game — are making a “payment or purchase” in exchange for a chance to win the prizes.

The Illinois Criminal Code makes it a crime to advertise or distribute tickets for any “lottery,” defined 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). However, the law makes an exception for games in which “money or other things of value can be won but no payment or purchase is required to participate.” 720 ILCS 5/28-1(b)(13) (added by the 2010 amendment, P.A. 96-1203, effective July 22, 2010); see also Illinois Prizes and Gifts Act, 815 ILCS 525/20(a) (prohibiting any requirement of payment as a condition to winning, competing for, or obtaining information about a prize). The Illinois definition is broader than the definition of lottery for purposes of the Federal Deposit Insurance Act, which prohibits banks from dealing in, announcing, advertising, or publicizing a lottery, defined as an arrangement in which participants “advance money or credit” for a chance to win a prize.

We do not believe that coming to the bank, filling out a survey, or playing a simple game would be considered a “payment or purchase,” and if you do not require such payment or purchase, your promotion will likely fall into the exception in the Illinois Criminal Code’s gambling prohibition. And coming to the bank or filling out a survey would clearly not be considered advancing “money or credit,” and thus your promotion would not likely be considered a lottery for purposes of the Federal Deposit Insurance Act.

Note that even requiring a customer to come out to the bank for a chance to win could be regarded as requiring consideration, making your game fall into the definition of lottery. See Midwest Television, Inc. v. Waaler, 44 Ill. App. 2d 401, 409–410 (3rd Dist. 1963). However, as stated above, your promotion likely falls into the “no payment or purchase required” exception to the general prohibition of lotteries.

And, note that other Illinois laws impose further restrictions on raffles and lotteries, even if no payment or purchase is required for a chance to win:

The 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). It 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 to the offer are clearly and conspicuously disclosed at the outset of the offer. 815 ILCS 505/2P.

Banks should also be aware that some counties and municipalities have ordinances regarding raffles or “games of chance” that require consideration.