Removing Barriers Blog

NJCUL Scores Legislative Victory With Prize-Linked Savings
Posted January 21, 2016 by CUNA Advocacy

 Recently, New Jersey Credit Union League-championed legislation, S 2495, that permits New Jersey credit unions and other financial institutions to offer savings promotions, also known as prize-linked savings (PLS) programs, was signed by Gov. Chris Christie.

The legislation authorizes New Jersey credit unions, banks, and savings banks to conduct promotions in which a minimum deposit in an amount predetermined by the institution qualifies for a chance to win prizes. 

In addition to enabling state-chartered institutions to offer the programs, the bill also clarifies that PLS programs do not constitute unlawful gambling under New Jersey law, and are not subject to any laws concerning legalized gambling.

New Jersey is now the 16th state authorized to conduct PLS programs. Other states include Michigan, Rhode Island, Maine, Washington, North Carolina, Nebraska, Maryland, Connecticut, Indiana, New York, Arkansas, Illinois, Minnesota, Oregon and Virginia.