FINAL BILL REPORT

                  SSB 6373

                          C 228 L 00

                      Synopsis as Enacted

 

Brief Description:  Clarifying promotional contests of chance.

 

Sponsors:  Senate Committee on Commerce, Trade, Housing & Financial Institutions (originally sponsored by Senators Gardner, T. Sheldon, Prentice, Rasmussen, Winsley, Hale, Deccio and Shin).

 

Senate Committee on Commerce, Trade, Housing & Financial Institutions

 

Background:  In 1973 the Legislature authorized promotional contests of chance.  Businesses use promotional contests of chance to enhance sales of products and services.  An example of a promotional contest of chance is when a restaurant gives a free lunch to someone who places his or her business card in a jar for a drawing.

 

The Gambling Commission monitors entry requirements for promotional contests of chance.  Generally, businesses may not require a person to purchase anything in order to participate in a promotional contest of chance.  The only exception is that businesses may ask customers to bring in a product container or only part of it, but only if the business accepts a plain piece of paper in its place.  The law allows businesses to ask customers to engage in various activities in order to participate in a promotional contest of chance.  For example, businesses may ask customers to fill out coupons and return them through the mail or businesses may ask consumers to attend a demonstration or tour a facility.

 

Concerns exist that the current law regarding promotional contests of chance needs moderniza­tion because it does not permit persons to enter promotions electronically or participate in instant win games.

 

Summary:  The statute regarding promotional contests of chance is repealed and replaced by a new statute.  Promotional contests of chance are permitted as long as consideration or purchases are not required to participate.  However, if a person makes a purchase, the business may give additional entries or chances as long as the business provides a free alternative method of entering the promotional contest.  This exemption does not apply to direct mail solicitations.  Consideration is defined as money paid in order to participate in a promotional contest of chance.  Equipment or devices for use in gambling activities are prohibited for use in promotional contests of chance unless authorized by the Gambling Commission.

 

Votes on Final Passage:

 

Senate 433

House980

House971(House reconsidered)

 

Effective:June 8, 2000