Rules on Spin of Prize Wheel for Every New Account

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Question:

Now that Reg Q is gone, what are the rules or what do we need to disclose if we want to offer a spin of a prize wheel (Prizes are from $25 - $200 ) for each new account opened? We are moving locations and would like to have this be part of our grand opening event.

Answer:

You need to consult your legal counsel. Based on your description this appears to be a lottery which would be prohibited under Federal and state law.

First published on BankersOnline.com 7/16/12