Can we do the following: The Bank wants to sell scratch tickets, all proceeds are going to a local charity. If there is a winner, the Bank will make them sign a W9 and they'll understand that they'll receive a 1099.

Sounds like a "lottery" and lotteries are no-no's.

Tell them a "national expert on bank lottery rules" indicated that it would be considered a lottery.

LOL!!

Pam, check out this thread and the link to Section 20(A) of the FDI Act. If you want the word doc sent to me by my state's DFI, PM me with your email and I'll send it to you.

Very helpful link Dan, as always, thanks so much. It's just so very frusturating when you know you're right but your response is not good enough and are told to check with someone else. What are they paying me for then????

Pam - cheer up. They do it to all of us. No one likes to hear 'no' for an answer.

I know Skittles, and it helps to have BOL and know you all go through the same thing , it's just maddening!

Stupid question...what if a charity wants us to sell tickets for them. We are not profiting by the sales we merely collect the funds and they pick them up at the end of the week.

I'll let you decide:

SEC. 20 (a) A State nonmember insured 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; or
(4) announce, advertise, or publicize the existence or identity of any participant or winner, as such, in a lottery.

[Codified to 12 U.S.C. 1829a(a)]

[Source: Section 2[20(a)] of the Act of September 21, 1950 (Pub. L. No. 797), as added by section 3 of the Act of December 15, 1967 (Pub. L. No. 90--203; 81 Stat. 610), effective April 1, 1968; as amended by section 602(a)(51) of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2290), effective September 23,1994]

(b) A State nonmember insured 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).

Also:

Twelve U.S.C. §25a generally prohibits national banks from involvement in lotteries. The portion relevant to your inquiry provides that “a national bank may not ... announce, advertise, or publicize the existence of any lottery.” 12 U.S.C. §25a(a). It seems clear that this language requires some affirmative action by a national bank to publicize a lottery, for example, by displaying advertising on its premises.