Insider Buzz: Promotional Game Ruled IllegalThe Minnesota Court of Appeals on Tuesday ruled that a promotional game that offers up to a $250 cash prize is a form of lottery that is illegal in the state.
The Appeals Court upheld a lower court ruling that determined the game, sponsored by Minnesota Souvenir Milkcaps, is really a lottery because customers pay for the chance to win a cash prize -- not for any tangible good.
It's a misdemeanor to conduct a lottery in Minnesota.
Attorney General Mike Hatch sued Minnesota Souvenir Milkcaps, and a Ramsey County judge ruled that the milkcaps had no value. Judge G. Barry Anderson, writing for the three-judge appeals panel, affirmed that decision.
"By any objective standard, these milkcaps have little value," Anderson wrote.
For $1, customers who took part in the promotion got a "milkcap" with a laminated picture and a scratch-off on the back that revealed prizes. Minnesota Souvenir Milkcaps argued that it's milkcaps are "collectible" items.
Milkcaps were once used to sell milk bottles, but the court said "vintage" milkcaps were thicker than the ones sold by Minnesota Souvenir Milkcaps and had pictures printed on them, rather than laminated.
