Rules covering unlawful lotteries
Chapter 271, Section 7 of the Massachusetts General Laws addresses
lotteries and schemes in which property or another thing of value is
distributed by chance outside authorized gaming activity.
In addition, state consumer-protection regulations address businesses
that use the sale of goods or services as a pretext for an unlawful
lottery, sweepstakes or similar gambling activity.
Electronic sweepstakes receive specific treatment
Chapter 271, Section 5B contains a specific definition of a
sweepstakes. It also addresses electronic devices used to conduct or
promote sweepstakes through actual or simulated game play.
Importantly, the statute goes beyond the simple question of whether a
participant pays to enter. Instead, its sweepstakes definition refers
to promotions that may operate with or without payment of
consideration.
A free option is only one factor
Meanwhile, regulation 940 CMR 30.00 lists several factors that can
matter when deciding whether a business operates an unlawful lottery,
sweepstakes or de facto gambling establishment.
For example, regulators can consider whether the main purpose of a
transaction is playing a game rather than buying a legitimate product.
They may also consider whether free play exists, how accessible it is
and whether paying customers receive a better chance of winning.
Therefore, a no-purchase entry method should not be treated as an
automatic guarantee that every sweepstakes casino or promotion complies
with Massachusetts law.