Washington State Senate Passes CU Lottery Bill (Misc News: February 24, 2011)
Using the innovative Save to Win contest in Michigan as its template, the Washington state Senate passed a bill Wednesday that will allow credit unions to offer prize-linked savings accounts.
According to CU Journal
, the sponsor of the bill cited the $100,000 savings lottery held by Michigan credit unions that attracted more than $8 million in new savings, the main goal of the growing number of savings contests and lotteries.
The prize-linked accounts are designed so people enter the prize drawing every time they deposit money into their savings account.
The MCUL & Affiliates joined with the Alpena Alcona Area CU in Alpena earlier this month to award $100,000 grand prize to AAACU member Charmain Hanners. Click here
to read the story about the grand prize winner. Currently, the prize-linked account model is illegal under Washington state law, because it is considered gambling. The Senate bill and a matching bill in the House would carve a provision into the law to allow credit unions to create the prize-linked accounts.
The House has yet to vote on the bill.
Washington is one of three states considering a savings lottery bill this year, the Journal reported.