An Act to prohibit certain banks and savings and loan associations from fostering or participating in gambling activities
PL 90-203 (H.R.10595), enacted 12/15/1967

608 
PUBLIC LAW 90-203-DEC. 15, 1%7 
[81 STAT. 
(b) that on or after the date of enactment the Secretary of Labor is 
authorized to issue such rules and regulations as may be necessary to 
carry out its provisions. 
APPROPRIATIONS 
SEC. 16. There are hereby authorized to be appropriated such sums, 
not in excess of $3,()()0,000 for any fiscal year, as may be necessary to 
carry out this Act. 
Approved December 15, 1967. 
December 15, 1967 
[H.R. 10595] 
National banks. 
Prohibited ac-
tivities, 
12 use 24. 
Definitions. 
Public Law 90-203 
AN ACT 
To prohibit certain banks and savings and loan associations from fostering or 
participating in gambling activities. 
Be it enacted hy the Senate and House of Re2>resentati'ves of the 
United States of America in Congress assembled. 
SECTION 1. (a) Chapter 1 of title L X I I of the Revised Statutes is 
amended by inserting, immediately after section 51fS6, the following 
new section: 
"SEC, 5136A. (a) A national bank may not— 
"(1) deal in lottery tickets; 
"(2) deal in bets used as a means or substitute for participation 
in a lottery; 
"(3) announce, advertise, or publicize the existence of any 
lottery; 
" (4) announce, advertise, or publicize the existence or identity 
of any participant or winner, as such, in a lottery. 
"(b) A national bank may not permit— 
"(1) the use of any part of any of its banking offices by any 
person for any purpose forbidden to the bank under subsection 
(a), or 
" (2) direct access by the public from any of its banking offices 
to any premises used by any person for any purpose forbidden to 
the bank under subsection (a). 
"(c) As used in this section— 
" (1) The term 'deal in' includes making, taking, buying, selling, 
redeeming, or collecting. 
"(2) The term 'lottery' includes any arrangement whereby 
three or more persons (the'participants') advance money or credit 
to another in exchange for the possibility or expectation that one 
or more but not all of the participants (the 'winners') will receive 
by reason of their advances more than the amounts they have 
advanced, the identity of the winners being determined by any 
means which includes— 
"(A) a random selection; 
"(B) a game, race, or contest; or 
"(C) any record or tabulation of the result of one or more 
events in which any participant has no interest except for 
its bearing upon the possibility that he may become a winner. 
"(3) The term 'lottery ticket' includes any right, privilege, or 
possibility (and any ticket, receipt, record, or other evidence of 
any such right, privilege, or possibility) of becoming a winner 
in a lottery. 
81 STAT.] 
PUBLIC LAW 9 0 - 2 0 3 - D E C . 15, 1967 
609 
"(d) Nothing contained in this section prohibits a national bank 
from accepting deposits or cashing or otherwise handling checks or 
other negotiable instruments, or performing other lawful banking 
services for a State operating a lottery, or for an officer or employee 
of that State who is charged with the administration of the lottery. 
"(e) The Comptroller of the Currency shall issue such regulations 
Regulations. 
as may be necessary to the strict enforcement of this section and the 
prevention of evasions thereof." 
(b) The table of sections at the beginning of that chapter is amended 
by inserting 
"5136A. Participation in lotteries prohibited." 
immediately above 
"5137. Power to hold real property." 
SEC. 2. The Federal Eeserve Act is amended by inserting imme- 
Federal Reserve 
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r\ 1 
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• 
.
"
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& 
Act, amendment. 
diately arter section 9 the lollowmg new section: 
38 stat. 259. 
12 use 321-338. 
"SECTION 9A. PARTICIPATION IN LOTT'ERIES PROHIBITED 
" (a) A State member bank may not— 
"(1) deal in lottery tickets; 
" (2) deal in bets used as a means or substitute for participation 
in a lottery; 
"(3) announce, advertise, or publicize the existence of any 
lottery; 
"(4) announce, advertise, or publicize the existence or identity 
of any participant or winner, as such, in a lottery. 
"(b) A State member bank may not permit— 
" (1) the use of any part of any of its banking offices by any 
person for any purpose forbidden to the bank under subsection 
(a), or 
" (2) direct access by the public from any of its banking offices 
to any premises used by any person for any purpose forbidden to 
the bank under subsection (a). 
"(c) As used in this section— 
Definitions. 
"(1) The term 'deal in' includes making, taking, buying, sell-
ing, redeeming, or collecting. 
"(2) The term 'lottery' includes any arrangement whereby 
three or more persons (the 'participants') advance money or 
credit to another in exchange for the possibility or expectation 
that one or more but not all of the participants (the 'winners') 
will receive by reason of their advances more than the amounts 
they have advanced, the identity of the winners being determined 
by any means which includes— 
"(A) a random selection; 
"(B) a game, race, or contest; or 
"(C) any record or tabulation of the result of one or more 
events in which any participant has no interest except for its 
bearing upon the possibility that he may become a winner. 
" (3) The term 'lotteiy ticket' includes any right, privilege, or 
possibility (and any ticket, receipt, record, or other evidence of 
any such right, privilege, or possibility) of becoming a winner in 
a lottery. 
610 
PUBLIC LAW 90-203-DEC. 15, 1967 
[81 STAT. 
Regulations. 
Federal Deposit 
Insurance Act, 
amendment. 
64 Stat. 893. 
12 u s e 1829. 
Definitions. 
Regulations. 
"(d) Nothing contained in this section prohibits a State member 
bank from accepting deposits or cashing or otherwise handling checks 
or other negotiable instruments, or performing other lawful banking 
services for a State operating a lottery, or for an officer or employee 
of that State who is charged witli the administration of the lottery. 
"(e) The Board of Governors of the Federal Reserve System shall 
issue such regulations as may be necessary to the strict enforcement of 
this section and the prevention of evasions thereof." 
SEC. 3. The Federal Deposit Insurance Act is amended by redesig-
nating sections 20 and 21 as 21 and 22, respectively, and by inserting 
immediately after section 19 the following new section: 
"SEC. 20. (a) A State nonmember insured bank may not^— 
"(1) deal in lottery tickets; 
" (2) deal in bets used as a means or substitute for participation 
in a lottery; 
"(3) announce, advertise, or publicize the existence of any 
lottery; 
"(4) announce, advertise, or publicize the existence or identity 
of any participant or winner, as such, in a lottery. 
"(b) A State nonmember insured bank may not permit— 
"(1) the use of any part of any of its banking offices by any 
person for any purpose forbidden to the bank under subsection 
(a), or 
"(2) direct access by the public from any of its banking offices 
to any premises used by any person for any purpose forbidden to 
the bank under subsection (a). 
"(c) As used in this section— 
"(1) The term 'deal in' includes making, taking, buying, sell-
ing, redeeming, or collecting. 
"(2) The term 'lottery" includes any arrangement whereby 
three or more persons (the 'participants') advance money or 
credit to another in exchange for the possibility or expectation 
that one or more but not all of the participants (the 'winners') 
will receive by reason of their advances more than the amounts 
they have advanced, the identity of the winners being determined 
by any means which includes— 
"(A) a random selection; 
"(B) a game, race, or contest; or 
"(C) any record or tabulation of the result of one or more 
events in which any participant has no interest except for its 
bearing upon the possibility that he may become a winner. 
"(3) The term 'lottery ticket' includes any right, privilege, or 
possibility (and any ticket, receipt, record, or other evidence of 
any such right, privilege, or possibility) of becoming a winner in a 
lottery. 
" (d) Nothing contained in this section prohibits a State nonmember 
insured bank from accepting deposits or cashing or otherwise han-
dling checks or other negotiable instruments, or performing other law-
ful banking services for a State operating a lottery, or for an officer 
or employee of that State who is charged with the administration of 
the lottery. 
"(e) The Board of Directors shall prescribe such regulations as 
may be necessary to the strict enforcement of this section and the pre-
vention of evasions thereof." 
81 STAT.] 
PUBLIC LAW 90-203-DEC. 15, 1967 
611 
SEC. 4. Title IV of the National Housing Act is amended by adding 
the following new section at the end: 
"SEC. 410. (a) An insured institution may not— 
" (1) deal in lottery tickets; 
"(2) deal in bets used as a means or substitute for participation 
in a lottery; 
"(3) announce, adA^ertise, or publicize the existence of any 
lottery; 
"(4) announce, advertise, or publicize the existence or identity 
of any participant or winner, as such, in a lottery. 
"(b) An insured institution may not permit— 
"(1) the use of any part of any of its own offices by any person 
for any purpose forbidden to the institution under subsection 
(a), or 
" (2) direct access by the public from any of its own offices to 
any premises used by any person for any purpose forbidden to 
the institution under subsection (a). 
"(c) As used in this section— 
"(1) The term 'deal in' includes making, taking, buying, 
selling, redeeming, or collecting. 
"(2) The term ^lottery' includes any arrangement whereby 
three or more persons (the 'participants') advance money or 
credit to another in exchange for the possibility or expectation 
that one or more but not all of the participants (the 'winners') 
will receive by reason of their advances more than the amounts 
they have advanced, the identity of the winners being determined 
by any means which includes— 
" ^ A) a random selection; 
"(B) a game, race, or contest; or 
"(C) any record or tabulation of the result of one or more 
events in which any participant has no interest except for its 
bearing upon the possibility that he may become a winner. 
"(3) The term 'lottery ticket' includes any right, privilege, or 
possibility (and any ticket, receipt, record, or other evidence of 
any such right, privilege, or possibility) of becoming a winner in 
a lottery. 
"(d) Nothing contained in this section prohibits an insured institu-
tion from accepting funds from, or performing any lawful services 
for, a State operating a lottery, or an officer or employee of that State 
who is charged with the administration of the lottery. 
"(e) The Federal Home Loan Bank Board shall prescribe such 
regulations as may be necessary to tlie strict enforcement of this sec-
tion and the prevention of evasions thereof." 
SEC. 0. (a) Chapter 61 of title 18 of the United States Code is 
amended by adding the following new section at the end: 
"§1306. Participation by financial institutions 
"Whoever knowingly violates section 5136A of the Revised Statutes 
of the United States, section 9A of the Federal Reserve Act, section 
20 of the Federal Deposit Insurance Act, or section 410 of the National 
Housing Act shall be fined not more than $1,000 or imprisoned not 
more than one year, or both." 
(b) The table of sections at the beginning of that chapter is amended 
by adding the following at the end: 
''1306. Participation by financial institutions." 
SEC. 6. The amendments made by this Act shall take effect on April 1, 
1968. 
Approved December 15, 1967. 
National Housing 
Act, amendment. 
48 Stat. 1255. 
12 u s e 1724-
1730b. 
Definitions. 
Regulations. 
Penalties. 
62 Stat. 762. 
18 u s e 1301-
1305. 
Effective 
date.