§1829a Participation by State Nonmember Insured Banks in Lotteries and Related Activities

Summary

State nonmember insured banks must not take part in lotteries or help run or promote them. They may not make, buy, sell, redeem, or collect lottery tickets or bets used like lotteries. They also may not announce, advertise, or publicize that a lottery exists or identify participants or winners. Banks may not let anyone use any part of a bank office for those banned activities, and they must not provide direct public access from a bank office to a place used for those activities. The law defines a few terms in one line each: "deal in" means making, buying, selling, redeeming, or collecting; "lottery" means any plan where three or more people put up money for a chance that some will win more than they put in, with winners chosen by random draw, a game or contest, or event results; "lottery ticket" means any right or evidence of a chance to win; "savings promotion raffle" means a raffle where entering only requires depositing a set amount into a savings account and each entry has an equal chance, under regulator rules. The Board of Directors must write rules to enforce these limits and stop attempts to get around them.