§ 156.40 Operating an unlawful electronic sweepstakes.\n 1. As used in this section the following words and terms shall have\nthe following meanings:\n (a) "Electronic machine or device" means a mechanically, electrically\nor electronically operated machine or device that is owned, leased or\notherwise possessed by a sweepstakes sponsor or promoter, or any\nsponsors, promoters, partners, affiliates, subsidiaries or contractors\nthereof; that is intended to be used by a sweepstakes entrant; that uses\nenergy; and that displays the results of a game entry or game outcome to\na participant on a screen or other mechanism at a business location,\nincluding a private club; provided, that an electronic machine or device\nmay, without limitation:\n (1) be server-based;\n (2) use a simulated game terminal as a representation of the prizes\nassociated with the results of the sweepstakes entries;\n (3) utilize software such that the simulated game influences or\ndetermines the winning or value of the prize;\n (4) select prizes from a predetermined finite pool of entries;\n (5) utilize a mechanism that reveals the content of a predetermined\nsweepstakes entry;\n (6) predetermine the prize results and stores those results for\ndelivery at the time the sweepstakes entry results are revealed;\n (7) utilize software to create a game result;\n (8) require deposit of any money, coin or token, or the use of any\ncredit card, debit card, prepaid card or any other method of payment to\nactivate the electronic machine or device;\n (9) require direct payment into the electronic machine or device, or\nremote activation of the electronic machine or device;\n (10) require purchase of a related product having legitimate value;\n (11) reveal the prize incrementally, even though it may not influence\nif a prize is awarded or the value of any prize awarded;\n (12) determine and associate the prize with an entry or entries at the\ntime the sweepstakes is entered; or\n (13) be a slot machine or other form of electrical, mechanical, or\ncomputer game.\n (b) "Enter" or "entry" means the act or process by which a person\nbecomes eligible to receive any prize offered in a sweepstakes.\n (c) "Entertaining display" means any visual information, capable of\nbeing seen by a sweepstakes entrant, that takes the form of actual game\nplay or simulated game play.\n (d) "Prize" means any gift, award, gratuity, good, service, credit or\nanything else of value, which may be transferred to a person, whether\npossession of the prize is actually transferred, or placed on an account\nor other record as evidence of the intent to transfer the prize.\n (e) "Sweepstakes" means any game, advertising scheme or plan, or other\npromotion, which, with or without payment of any consideration, a person\nmay enter to win or become eligible to receive any prize, the\ndetermination of which is based upon chance.\n 2. A person is guilty of operating an unlawful electronic sweepstakes\nwhen he or she knowingly possesses with the intent to operate, or place\ninto operation, an electronic machine or device to:\n (a) conduct a sweepstakes through the use of an entertaining display,\nincluding the entry process or the reveal of a prize; or\n (b) promote a sweepstakes that is conducted through the use of an\nentertaining display, including the entry process or the reveal of a\nprize.\n 3. Nothing in this section shall be construed to make illegal any\nactivity which is lawfully conducted as the New York state lottery for\neducation as authorized by article thirty-four of the tax law;\npari-mutuel wagering on horse races as authorized by articles two,\nthree, four, five-A, and ten of the racing, pari-mutuel wagering and\nbreeding law; the game of bingo as authorized pursuant to article\nfourteen-H of the general municipal law; games of chance as authorized\npursuant to article nine-A of the general municipal law; gaming as\nauthorized by article thirteen of the racing, pari-mu
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