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

Summary

State nonmember insured banks must not take part in or help run lotteries. They may not sell, handle, or otherwise deal with lottery tickets or bets that act like lotteries. They must not announce, advertise, or publicize that a lottery exists, or name any participant or winner. Banks also must not let anyone use any part of a bank office for those banned activities, and they must not give the public direct access from a bank office to a place where those activities happen. The law defines a few key words: "deal in" means doing things like creating, accepting, buying, selling, redeeming, or collecting. "Lottery" means a plan (except a savings promotion raffle) where three or more people put up money or credit so some—but not all—may win more than they paid, with winners picked by random draw, a game/race/contest, or by using event results that players can’t influence. "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 putting a set amount into a savings account, every entry has an equal chance, and the contest follows rules set by the appropriate prudential regulator. Banks may still take deposits or cash checks and do other normal banking work for a State that runs a lottery or for its lottery officers. The Board of Directors must make rules needed to enforce these limits and stop people from getting around them.