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725.12 Lotteries and lottery tickets — definition — prosecution. 1. If any person makes or aids in making or establishing, or advertises or makes public a scheme for a lottery; or advertises, offers for sale, sells, distributes, negotiates, disposesof, purchases, or receives a ticket or part of a ticket in a lottery or number of a ticket in alottery; or has in the person’s possession a ticket, part of a ticket, or paper purporting to bethe number of a ticket of a lottery, with the intent to sell or dispose of the ticket, part of aticket, or paper on the person’s own account or as the agent of another, the person commits aserious misdemeanor. However, this section does not prohibit the advertising of a lottery orpossession by a person of a lottery ticket, part of a ticket, or number of a lottery ticket from alottery legally operated or permitted under the laws of another jurisdiction. This section alsodoes not prohibit the advertising of a lottery, game of chance, contest, or activity conducted bya not-for-profit organization that would qualify as tax exempt under section 501 of the InternalRevenue Code, as defined in section 422.3, or conducted by a commercial organization as

ity conducted bya not-for-profit organization that would qualify as tax exempt under section 501 of the InternalRevenue Code, as defined in section 422.3, or conducted by a commercial organization as apromotional activity which is clearly occasional and ancillary to the primary business of thatorganization, provided that the effective dates on any promotional activity shall be clearlystated on all promotional materials. A lottery, game of chance, contest, or activity shall bepresumed to be a promotional activity which is not occasional if the lottery, game of chance,contest, or activity is in effect or available to the public for a period of more than ninety dayswithin a one-year period. 2. A commercial organization shall not conduct a promotional activity that involves the sale of pull-tab tickets or instant tickets, as defined in section 99G.3, coupons, or tokens thatare not authorized by the Iowa lottery authority and that may represent a chance to win acash prize to be paid on the premises where the chance to win such prize was obtained. Thissubsection shall not be construed to prohibit a commercial organization from giving awaypull-tab tickets, instant tickets, coupons, or

he premises where the chance to win such prize was obtained. Thissubsection shall not be construed to prohibit a commercial organization from giving awaypull-tab tickets, instant tickets, coupons, or tokens free of charge as part of a promotionalactivity, provided that the other provisions of this section are complied with. For purposes ofthis subsection, 'cash' means United States currency. 3. When used in this section, 'lottery' shall mean any scheme, arrangement, or plan whereby one or more prizes are awarded by chance or any process involving a substantialelement of chance to a participant, and where some or all participants have paid or furnisheda consideration for such chance. 4. For the purpose of determining the existence of a lottery under this section, a consideration shall not be deemed to have been paid or furnished where all or substantiallyall entries representing chances to win are submitted by means of the internet or the UnitedStates mail or by similar delivery method to the person or persons conducting the lottery,game of chance, contest, or activity prior to any prize being awarded, and where one ormore of such chances to win may be obtained by participants

thod to the person or persons conducting the lottery,game of chance, contest, or activity prior to any prize being awarded, and where one ormore of such chances to win may be obtained by participants where no purchase or paymentis required to enter or win. In all other cases, a consideration shall be deemed to have beenpaid or furnished only in such cases where as a direct or indirect requirement or condition ofobtaining a chance to win one or more prizes, some or all participants make an expenditureof money or something of monetary value through a purchase, payment of an entry oradmission fee, or other payment or the participants are required to make a substantialexpenditure of effort; provided, however, that no substantial expenditure of effort shall bedeemed to have been expended by any participant solely by reason of the registration ofthe participant’s name, address, and related information, the obtaining of an entry blankor participation sheet, by permitting or taking part in a demonstration of any article orcommodity, by making a personal examination of posted lists of prize winners, or by actsof a comparable nature, whether performed or accomplished in person at any store,

emonstration of any article orcommodity, by making a personal examination of posted lists of prize winners, or by actsof a comparable nature, whether performed or accomplished in person at any store, placeof business, or other designated location, through the mails, or by telephone; and furtherprovided, that no participant shall be required to be present in person or by representative atany designated location at the time of the determination of the winner of the prize, and thatthe winner shall be notified either by the same method used to communicate the offering ofthe prize or by regular mail. 5. Upon request of the Iowa lottery authority or the division of criminal investigation of the department of public safety, the attorney general shall institute in the name of the state Sat Dec 23 12:32:29 2023 Iowa Code 2024, Section 725.12 (15, 0) §725.12, VICE 2 the proper proceedings against a person charged in such request with violating this section,and a county attorney may, at the request of the attorney general, appear and prosecute anaction when brought in the county attorney’s county.

rson charged in such request with violating this section,and a county attorney may, at the request of the attorney general, appear and prosecute anaction when brought in the county attorney’s county. [C51, §2730; R60, §4377; C73, §4043; C97, §5000; C24, 27, 31, 35, 39, §13218; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, §726.8; C79, 81, §725.12] 85 Acts, ch 33, §125; 89 Acts, ch 48, §1; 2005 Acts, ch 81, §1; 2006 Acts, ch 1010, §160Referred to in §725.15 Sat Dec 23 12:32:29 2023 Iowa Code 2024, Section 725.12 (15, 0)