Nothing contained in this section prohibits a State nonmember insured 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.
12 U.S. Code § 1829a. Participation by State nonmember insured banks in lotteries and related activities
(a) Prohibited activitiesA State nonmember insured bank may not—
announce, advertise, or publicize the existence of any lottery; or
announce, advertise, or publicize the existence or identity of any participant or winner, as such, in a lottery.
(b) Use of banking premises prohibitedA State nonmember insured bank may not permit—
(c) DefinitionsAs used in this section—
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—
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) Lawful banking services connected with operation of lottery
(e) Regulations; enforcement
Subsec. (c)(4). Pub. L. 113–251, § 3(c)(2), added par. (4).
1994—Subsec. (a)(3). Pub. L. 103–325 inserted “or” at end.