1. Except as otherwise provided in subsection 2, lottery means any scheme for the disposal or distribution of property, by chance, among persons who have paid or promised to pay any valuable consideration for the chance of obtaining that property, or a portion of it, or for any share or interest in that property upon any agreement, understanding or expectation that it is to be distributed or disposed of by lot or chance, whether called a lottery, raffle or gift enterprise, or by whatever name it may be known. 2. Lottery does not include a promotional scheme conducted by a licensed gaming establishment in direct association with a licensed gaming activity, contest or tournament. 3. For the purpose of this section, a person has not paid or promised to pay any valuable consideration by virtue of having: (a) Engaged in or promised to engage in a transaction in which the person receives fair value for the payment; (b) Accepted or promised to accept any products or services on a trial basis; or (c) Been or promised to have been present at a particular time and place, as the sole basis for having received a chance to obtain property pursuant to an occasional and ancillary promotion conducted by an organization whose primary purpose is not the operation of such a promotion.
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