Jackpot promotion for use in food retailing industry, involving < numbers matching protocol, is within Trade…

“Jackpot” promotion for use in food retailing industry, involving < numbers matching protocol, is within Trade Regulation Rule for Games of Chance in the Food Retailing and Gasoline

Industries, 16 CFR 419.
Opinion Letter
January 27, 1978
Dear Mr. Radcliffe:

This is in response to your request for advice concerning a “jackpot’ -_promotion for use in the food retailing industry, involving a number: matching protocol. Your inquiry is whether this promotion is a “game of chance” within the Commission’s Trade Regulation Rule for Game: of Chance in the Food Retailing and Gasoline Industries, 16 CFR 419 As the Commission understands the promotion you propose, game pieces will be made available to potential contestants through outlet: of a sponsoring food retailer (no purchase required). The game piece: will consist of small cards imprinted with twenty-five different randomly placed numbers from the series of “1” to “25”. Such number: are not immediately visible, but. are hidden beneath twenty-five opaquely surfaced panels. The number that may be disclosed by scraping away the surface of any such’ panel, therefore, is a matte solely of chance.

The game sponsor or user will have identified nine particulai numbers from the “1” to “25” series, for each run of the game Contestants are required to prepare their cards, or game pieces, by scraping away and uncovering nine only out of the twenty-five panels thus revealing nine of the card’s numbers. Contestants must turn ir game pieces, so prepared, by closing time the last day of a contest! month in order to be eligible. Two jack-pots are provided, one foi $40,000 and a lesser one for $20,000.

A contestant having entered a game card matching eight of the nine designated winning numbers will win either the principal jack-pot o1 $40,000, or that jack-pot will be divided equally among all contestant: who submitted game cards so qualifying. The $20,000 jack-pot will be awarded to contestants whose game cards match seven of the nine numbers designated. The reported odds of hitting eight out of the nine designated numbers is 1 in 14,190. The reported odds of hitting sever out of the nine, is 1 in 478.

The Commission concludes that the promotion is within the Rule. It is, first of all, clearly a “game of chance” as that term is used anc understood in ordinary usage. It involves calculable odds of whict

ADVISORY OPINIONS 1165 (164 xontest of skill. It does not appear to consist of a “one-shot” sweepstakes. Rather, it is a game at least susceptible of protraction over an extended period, during which contestants may be expected to return successively to a participating retail outlet for additional game pieces, in the hopes of winning.

The Commission has determined, accordingly, that the promotion should be conducted in conformity with each of the Rule’s applicable provisions. Particular provisions of the Rule which, by their nature, clearly contemplate only games that involve pre-selected winning game pieces, are not applicable to your game and, therefore, you may properly disregard them. An example would be the second requirement of Section (b)(1), requiring disclosure (after a game has extended beyond 30 days) of the number of unredeemed prizes still available and the then existing odds.

The Commission’s staff will remain available to provide any assistance you may need, if you find difficulty in determining which provisions of the Rule are properly applicable to your game.

By direction of the Commission.
Letter of Request
February 2, 1977