PROPOSED AMENDMENT TO §45.106

§45.106.  Sweepstakes and Games of Chance.

(a)      This rule relates to §102.07 and §108.061 of the Alcoholic Beverage Code.

(b)      For purposes of the above referenced provisions of the Alcoholic Beverage Code, sweepstakes shall include prizes that are awarded to consumers on the basis of random chance or on the basis of some knowledge or skill demonstrated by the sweepstakes participant, as determined by a judge or judges selected by the sponsor for that purpose.

(c)      Members of the manufacturer and wholesaler tier (except holders of a distributor’s license)The holder of the following licenses and permits may offer a prize to a consumer if the offer is part of a nationally conducted promotional sweepstakes activity. legally offered and simultaneously conducted during the same time period in 30 or more states:

(1) manufacturer's license;

(2) non-resident manufacturer's license;

(3) brewer's permit;

(4) non-resident brewer's permit;

(5) distiller's and rectifier's permit;

(6) winery permit;

(7) wine bottler's permit; or

(8) non-resident seller's permit.

(d)      A promotional permit holder contracted by the holder of a manufacturer’s or wholesaler’s permit may sponsor a sweepstakes on behalf of the manufacturer or wholesaler.  Any sweepstakes promotion must be legally offered and simultaneously conducted during the same time period in 30 or more states.

(e)            A person affiliated with the alcoholic beverage industry may not receive a prize from a sweepstakes promotion.

(f)       Alcohol may not be awarded as a prize.

(g) (f) A person must be 21 years of age or older to enter a sweepstakes promotion.

(g)      No game piece, or other form of instant win device may be packaged with, within, or printed on any packages of alcoholic beverages. All sweepstakes entries are prohibited from requiring a purchase of an alcoholic beverage or the validation of any kind which requires a purchase of any alcoholic beverage.

(h)      An upper tier sponsored sweepstakes entry or contest may not be retailer specific and prizes may not be awarded on a retailer’s premise.  No sweepstakes entry may be packaged with, within, or printed on any packages of alcoholic beverages unless there is provided at the point of sale identical entries available to the consumer. All sweepstakes entries are prohibited from requiring a purchase of an alcoholic beverage or the validation of any kind which requires a purchase of any alcoholic beverages.

(i)              Entry codes or entry forms on or in the caps, corks, labels, case cartons, or other materials packaged with, within, or printed on any packages of alcoholic beverages may be used as an entry mechanism provided:

(1)        such mechanisms do not grant a consumer’s right to claim winnings; and

(2)        there is at the point of sale conspicuously displayed alternate methods of entry available to the consumer.

(j)       All sweepstakes entries are prohibited from requiring a purchase of an alcoholic beverage or the validation of any kind which requires a purchase of any alcoholic beverages.

(k)(i)  Except as specifically authorized by this section, and the Alcoholic Beverage Code, §102.07 and §108.061, it shall be unlawful for any person to sell or distribute any alcoholic beverage in a container bearing any label, crown, or covering upon which there is printed or marked any word, letter, figure, symbol or character representative of or suggesting any game of chance, or to use or display any advertising so printed or marked.

(l)(j)   Any sweepstakes promotion that includes prizes that are to be awarded on the basis of some knowledge or skill demonstrated by the sweepstakes participant may not be held or conducted on the licensed premises of a retailer or private club.  Sweepstakes sponsors may, with the retailer’s permission, place sweepstakes entry forms on retail premises.