We are a state non-member FDIC bank, so I know we are to follow these rules:
https://www.fdic.gov/regulations/laws/rules/1000-2200.htmlWould the following be considered a lottery, and prohibited for the bank to participate in or advertise?
The Chamber of Commerce holds a local event, open to anyone, but admission to the event is $5 per person. The bank is going to have a drawing where people can register at the event for a chance to win a $500 gift card. Registration for the $500 gift card is open for anyone (over the age of 18) attending the event. The entrant does not have to pay to enter, and they do not have to be a bank customer.
Because the entrant has to pay $5 to enter the gate to be able to enter the drawing, and then there is a chance to win, and a prize valued at more than the amount advanced ($5), would this be considered a lottery that we should not take part in or advertise?