BOSTON–Massachusetts has become the latest state to legalize prize-linked savings programs.
With Gov. Charlie Baker’s signature on enabling legislation, Massachusetts joins 22 other states in allowing credit unions and other financial institutions to offer savings programs in which prizes are offered to those with good savings habits.
In Massachusetts, Senate 2374, An Act Relative to Personal Savings, has become law as Chapter 294 of the Acts of 2016. The legislation amends state gaming laws to make clear that savings promotion raffles are not considered gambling. The bill also holds that the raffles must be conducted in a manner that ensures each entry has an equal chance of winning, similar to other states.
The legislation takes effect Jan. 12, 2017, but the Massachusetts Commissioner of Banks must still create regulations to make the programs possible.