§339 — Title 12 Banks and Banking | U.S. Code

Summary

State member banks must not sell or handle lottery tickets or bets used instead of lottery play. They also must not announce, advertise, or publicize any lottery or the names of lottery players or winners. Banks may not let anyone use their bank offices for those forbidden activities, and they may not give the public direct access from a bank office to a place where those activities happen. The law defines some words: "deal in" means making, taking, buying, selling, redeeming, or collecting; "lottery" means any arrangement (except a savings promotion raffle) where three or more people give money or credit for a chance that some will win more than they put in, with winners picked by random choice, a game or contest, or the results of events; "lottery ticket" means any right or proof of a chance to win; "savings promotion raffle" means a contest where the only cost to enter is depositing money into a savings account and each entry has an equal chance. Banks may still take deposits, cash checks, and do other normal banking for a State running a lottery or its officials. The Board of Governors of the Federal Reserve System must make rules to enforce these limits and stop evasions.

Title 12, §339

Banks and Banking — Source: USLM XML via OLRC

(a)A State member bank may not—

(1)deal in lottery tickets;

(2)deal in bets used as a means or substitute for participation in a lottery;

(3)announce, advertise, or publicize the existence of any lottery; 11 So in original. The word “or” probably should appear.

(4)announce, advertise, or publicize the existence or identity of any participant or winner, as such, in a lottery.

(b)A State member bank may not permit—

(1)the use of any part of any of its banking offices by any person for any purpose forbidden to the bank under subsection (a), or

(2)direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a).

(c)As used in this section—

(1)The term “deal in” includes making, taking, buying, selling, redeeming, or collecting.

(2)The term “lottery” includes any arrangement, other than a savings promotion raffle, whereby three or more persons (the “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, the identity of the winners being determined by any means which includes—

(A)a random selection;

(B)a game, race, or contest; or

(C)any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possibility that he may become a winner.

(3)The term “lottery ticket” includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery.

(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).

(d)Nothing contained in this section prohibits a State member bank from accepting deposits or cashing or otherwise handling checks or other negotiable instruments, or performing other lawful banking services for a State operating a lottery, or for an officer or employee of that State who is charged with the administration of the lottery.

(e)The Board of Governors of the Federal Reserve System shall issue such regulations as may be necessary to the strict enforcement of this section and the prevention of evasions thereof.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as section 9A of act Dec. 13, 1913, and not as part of section 9 of such act which comprises this subchapter.

Amendments

2014—Subsec. (c)(2). Pub. L. 113–251, § 3(b)(1), inserted “, other than a savings promotion raffle,” before “whereby” in introductory provisions. Subsec. (c)(4). Pub. L. 113–251, § 3(b)(2), added par. (4).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Apr. 1, 1968, see section 6 of Pub. L. 90–203, set out as a note under section 25a of this title.

§339 Participation by State member banks in lotteries and related activities