CFED Assets & Opportunity Scorecard
States that allow financial institutions to offer prize-linked savings programs, 2012.
Prize-linked savings (PLS) programs give savings accountholders the opportunity to win prizes when they make deposits. In these programs, financial institutions offer consumers a savings product with a low minimum balance requirement; accountholders make monthly deposits, which qualify them for monthly and/or annual drawings. The possibility of a prize encourages greater savings. Unlike gambling, however, no one loses from participation in a PLS program. Prize-linked savings programs focus on the entertainment value and fun of winning prizes, but without risking any principle and with the knowledge that one is building an asset. Not everyone “wins” one of the prizes, but everyone comes out ahead with increased savings.
To enable PLS programs, states need to ensure that banking and gaming regulations do not prevent financial institutions from holding private lotteries. In some states, laws already allow savings promotions. States where PLS is not legal can enact legislation that exempts financial institutions from regulations.
|State||Legality of Prize-Linked Savings|
|Alaska||Existing laws may allow for prize-linked savings|
|Arizona||Existing laws may allow for prize-linked savings|
|District of Columbia|
|Georgia||Existing laws may allow for prize-linked savings|
|Maine||Yes (legislation passed in 2010)|
|Maryland||Yes (legislation passed in 2010)|
|Michigan||Law already allows prize-linked savings|
|Nebraska||Yes (legislation passed in 2011)|
|New Mexico||Existing laws may allow for prize-linked savings 1|
|North Carolina||Yes (legislation passed in 2011)|
|Rhode Island||Yes (legislation passed in 2010)|
|Washington||Yes (legislation passed in 2011)|
"Prize-Linked Savings: Policy Update 2011." Allston, MA: D2D Fund, 2011.
1. State introduced legislation in 2010 or 2011 session.