Be careful with pick-the-winners games
By Rick Ask
GCD Administrator
It is this time of year when we begin to feel a nip in the air, leaves start turning red and yellow, and footballs start flying back and forth in stadiums all across the state.
And every year about this time, it seems there is some “guy” out there telling location operators they can offer a pick-the-winning-team game, charge a fee, and pay out prizes to those who choose the most winning teams. The “guy” also tells them their patrons will love it because, unlike the old, legal 100-square sports pool boards or sport tab games, players get to pick teams they think will win.
Unfortunately, after some operators listen to the “guy” and start charging to play pick-the-winners, in walks a Gambling Control Division investigator who seizes the forms and dollars wagered, and writes a violation notice for operating a form of illegal gambling.
I know this is happening again this year, because I signed several proposed department actions (PDAs) recently that are going to operators who listened to the “guy” instead of calling the Division. The most recent violations were filed against location operators who allowed patrons to fill out football game pick-the-winner forms, and turn them in with a wager.
To be considered a gambling activity, the law requires that consideration be paid for a chance to win a prize. The law also provides that all forms of gambling are illegal except those that have been specifically authorized in law. Because these operators were charging to play, consideration was paid to play, there was chance in the outcome of the games, and prizes were to be awarded, it was gambling.
Because pick-the-winners is not an authorized gambling activity, the conduct of this game is considered an illegal gambling enterprise. Only sports pools, sport tab games and Calcuttas are legal forms of wagering related to sporting events.
Understand that the pick-the-winners game is a legal form of a promotional game chance, specifically identified in gambling administrative rules.
The difference between a promotional game of chance and a gambling activity is that players don't pay (and can't pay) any consideration to play a promotional game of chance. Pick-the-winners is illegal when consideration is paid to play, but legal when no consideration is required and the game is played as a promotional activity.
So the next time some “guy” tells you about an ingenious idea about a new way to offer gambling activities, please reach for your book of gambling statutes and rules, or give a call to your local Gambling Investigations Bureau, or the Division office in Helena.