Use of Electronic Machine or Device to Conduct

Sweepstakes Illegal.

(a)Definitions. As used in this Section, unless the context clearly requires otherwise, the following words shall have the following meanings:

(1)

(A)Electronic machine or device means a mechanically, electrically or electronically operated machine or device that is owned, leased, or otherwise possessed, by a sweepstakes sponsor or promoter, or any sponsors, promoters, partners, affiliates, subsidiaries, or contractors thereof, that is intended to be used by a sweepstakes entrant, that uses energy, and that is capable of displaying information on a screen or other mechanism. This Section is applicable to an electronic machine or device whether or not it:

(i)is server-based;

(ii)uses a simulated game terminal as a representation of the prizes associated with the results of the sweepstakes entries; COL6/5/2019 CH. 64 GAMBLING

(iii)utilizes software such that the simulated game influences or determines the winning or value of the prize;

(iv)selects prizes from a predetermined finite pool of entries;

(v)utilizes a mechanism that reveals the content of a predetermined sweepstakes entry;

(vi)predetermines the prize results and stores those results for delivery at the time the sweepstakes entry results are revealed;

(vii)utilizes software to create a game result;

(viii)requires deposit of any money, coin, or token, or the use of any credit card, debit card, prepaid card, or any other method of payment to activate the electronic machine or device;

(ix)requires direct payment into the electronic machine or device, or remote activation of the electronic machine or device;

(x)requires purchase of a related product having legitimate value;

(xi)reveals the prize incrementally, even though it may not influence whether or not a prize is to be awarded or the value of any prize awarded;

(xii)determines and associates the prize with an entry or entries at the time the sweepstakes is entered;

(xiii)is a slot machine or other form of electrical, mechanical, or computer game.

(B)Electronic machine or device also includes gambling devices as defined in § 64.20(b) of this Chapter. COL6/5/2019 CH. 64 GAMBLING

(2)Enter or entry means the act or process by which a person becomes eligible to receive any prize offered in a sweepstakes.

(3)Entertaining display means any visual information, capable of being seen by a sweepstakes entrant, that takes the form of actual game play, or simulated game play.

(4)Game play or simulated game play means any game play whether actual or electronically simulated which when played may return winnings (other than free games not redeemable for cash) of value to the user based partially or completely upon chance, which a user is required to participate in prior to the reveal of a prize, or the receipt of anything of value.

(5)Prize means any gift, award, gratuity, good, service, credit, or anything else of value, which may be transferred to a person, whether possession of the prize is actually transferred, or placed on an account or other record as evidence of the intent to transfer the prize.

(6)Sweepstakes means any game, advertising scheme or plan, or other promotion, which uses an electronic machine or device as defined in this Section, with or without payment of any consideration, that a person may enter to win or become eligible to receive any prize, the determination of which is based partially or completely upon chance.

(b)It shall be unlawful for any person to operate or knowingly possess with the intent to operate, or place into operation, an electronic machine or device to:

(1)conduct a sweepstakes through the use of an entertaining display, including the entry process or the reveal of a prize; or

(2)promote a sweepstakes that is conducted through the use of an entertaining display, including the entry process or the reveal of a prize. COL6/5/2019 CH. 64 GAMBLING

(c)Nothing in this Section shall be construed to make illegal any activity which is lawfully conducted pursuant to Title