LITTLE ROCK, Ark.—Arkansas has become the latest state to permit prize-linked savings accounts.
The accounts are now legal following the passage of HB1642, which was signed into law as Act 589, the Arkansas Savings Promotion Act, and which makes it lawful for a financial institution to conduct a raffle for individuals who participate in a savings program.
Specifically under the Act:
- All financial institutions are eligible for the savings promotion raffle, including credit unions.
- Financial institutions can conduct the savings promotion raffle for depositors who make the required deposit into a savings vehicle.
- The raffle must be conducted so that each deposit provides the depositor with an equal chance of winning the designated prize.
“ACT 589 of 2015 adds a new dimension to the bingo and raffle law that was enacted in the State of Arkansas several years ago, legalizing raffles and bingo for nonprofit organizations," said Arkansas Credit Union Association President Reta Kahley in a statement. "This Act now allows credit unions and other financial institutions the opportunity to create for their depositors savings incentive programs that offer prizes and other promotional items for specified savings programs.”