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.
For more information about prize-linked savings, visit D2D Fund's website and see their recent report Playing the Savings Game: A Prize-Linked Savings Report.
|State||Legality of Prize-Linked Savings||Program Implementation|
|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 2012)||Program in planning stages|
|Michigan||Law already allows prize-linked savings||Program has been implemented|
|Nebraska||Yes (legislation passed in 2011)||Program has been implemented|
|New Mexico||Existing laws may allow for prize-linked savings 1|
|North Carolina||Yes (legislation passed in 2011)||Program has been implemented|
|Rhode Island||Yes (legislation passed in 2010)|
|Washington||Yes (legislation passed in 2011)||Program in planning stages|
“Legislative Success.” Allston, MA: D2D Fund, 2012. Data accessed in November 2012 at http://www.d2dfund.org/Legislative_Success. Data also provided through email correspondence with the D2D Fund in November 2012. CFED thanks Joanna Smith-Ramani for her assistance in developing and reviewing this data.