EMEIRAL 

OF TEXAS 

Hon. Gean B. Turner Opinion No. 0-28L3 

District Attorney Re: Whether or not advertising scheme 

Johnson Count; ("Appreciation Day") of merchants of 

Cleburne, Texas Cleburne constitutes a latter. 

Dear Sir: 

This will acknowledge receipt of your letter of October 22, 

19l~0, requesting the opinion of this department as to whether or not 

the following scheme constitutes a lottery in violation of Article 6% 

of the Penal Code: 

YThe merchants of Cleburne want official ruling regarding a trades day plan called 'Appreciation Day'. The 

plan operates by merchants who pay to a caumon fund called 

Appreciation Day. These merchants give coupons called 

'Treasure Chest' coupons, which coupons contain markings 

from 5 to 50%. -After perchases are made in these participating~ firms ~the customer is given a coupon which is 

punched from any denomination from the 5 to $I$. The custom 

to be generally followed that a customer who purchases from 

254 to 99g in a participating store is given a 5% punched 

coupon; a purchase of $1.00 to $1.99, a 10% COUpOn; a purchase of $2.00 to $2.99, a 20% coupon; a $3.00 to $3.99, a 

30% coupon; a $4.00 to 3bh.99, a LO% coupon, and a purchase 

of.$S.OO to $10.00, a 50% coupon. 

"The customer then signs his or her name and address 

onthe back of the coupon, drops it in a box. On 'Drawing' 

day the tickets or coupons are placed in a general container 

from which is drawn a winning ticket. The persons whose 

name is drawn is awarded the 5, 10, 20,,30, 40 and sC$ of 

the trades day fund money depending on the percentage of the 

coupon which is drawn. 

"A wife may answer for her husband and a husband may answer for his wife. 

"If neither of these people are present, another ticket 

or coupon is drawn until someone is actually awarded scme 

part of the 'Appreciation Day Money'. 

"Though it is the general practice that tickets or coupons be given after each purchase or payment on account, a 
Hon. Gesn B. Turner, page 2 (O-28W) 

person may request a 'free' coupon of the merchant if 

he does not have a coupon to participate in the drawing. 

"The purpose of the plan is to create interest in 

the home community by the merchants giving away of such 

prizes. Customers who are loyal ta Cleburne are given 

these coupons after they have traded with local participating merchants. No consideration of value is placed 

on these tickets. 

“A folder explaining the plan, together with a 

sample of ticket, is included herein for examination. 

The merchants would appreciate an immediate ruling on the 

legality of this Appreciation Day plan." 

This department has on numerous occasions passed on the question 

of whether or not various mercantile advertising schemes constitute a lottery, and without exception has so branded them when the elements of chance, 

prize and consideration have been found to be present. 

We are enclosing copies of three opinions previously rendered by 

this department (0-117h, O-2286, o-2563) which we believe to be directly in 

point. 

For the reasons set forth in Opinions Nos. O-1174, O-2286 and O2563, and under the authorities there cited, it is our opinion and you are 

respectfully advised that the mercantile advertising scheme described in 

your letter, "Appreciation Day", constitutes a lottery as is condemned by 

Article 69~ of the Penal Code of Texas. 

Very truly yours, 

ATTORNEY GENERAL OF TEXAS 

By /s/ Jas. D. Smullen 

Jas. D. Smullen, Assistant 

APPROVED CCT 28, 191rO 

/s/ Gerald C. Mann 

ATTORNEY GENERAL OF TEXAS 

APPROVED: OPINION COMMITTEE 

BY: BWB, CHAIRMAN 

JDS:db:wb 

Enclosures