[KHergesheimer]

We have been presented with a chance to be a sponsor for a give away. Our NW MT TV station would like us to be one of the sponsors to offer a one year scholarship to the University of Montana. They would like to get 12 sponsors. Entries will be taken at all sponsor locations and one finalist will be chosen from among each sponsors entries. I do not have information yet on entry requirements other than it is being targeted at high school students and I assume they must be 18 years of age to enter the give away and I would think be registered to attend the University. I also do not have information on whether it will be a basic drawing or if the entrant will have to step through any hoops to qualify for the prize? It will be promoted across our part of Montana and will provide us with TV advertising, local news coverage, social media coverage and direct mailing coverage. Promotional value estimated to be double the investment they would like us to make. They have also indicated that they will share the database of entrants names collected with us which I would think would have to be disclosed somewhere on the entry form? I have many questions but before I get too deep into reviewing this I am wondering if you would consider this any type of a lottery, contest, sweepstake etc. that the bank would not/should not be involved in? It is a targeted group that would be able to qualify to enter and win the prize of the scholarship. There is no cost to enter and no requirement to be a bank customer. Thanks for any guidance you can give me on this:)

[jholzknecht]

Federal law generally provides that a 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 in a lottery. The term “lottery” includes any arrangement 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 random selection;
> a game, race, or contest; or
> 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.

Since the participants in your contest do not have to advance funds it does not appear to fit the definition of a “lottery.” You should check Montana law. I also suggest running this by your friendly local examiner to may sure they are comfortable with the concept.

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