Mailbox: Which States Allow Prize-Linked Savings Accounts?

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The Drive of the Lottery

In “Drive of the Lottery” you described prize-linked savings accounts.

Which states allow Credit Unions to offer prize-linked savings accounts?

Assets & Opportunity Score Card has devoted a part of their website to tracking whether a state has prize-linked savings (PLS) legalized. As of today, their official list is:

  1. Alaska
  2. Arizona
  3. Connecticut
  4. Georgia
  5. Maine
  6. Maryland
  7. Michigan
  8. Nebraska
  9. New Mexico
  10. New York
  11. North Carolina
  12. Rhode Island
  13. Washington

Michigan was the first to legalize these savings accounts. They have since opened a large scale website called Save To Win to advertize where you can acquire a prize-linked savings accounts. Save To Win also partnered with North Carolina, Nebraska, and Washington State, all of which offer these accounts through Doorways 2 Dreams Fund.

According to a 2013 article, the Washington credit unions that offer PLS accounts are “OBee Credit Union in Tumwater, Fibre Federal Credit Union in Longview, TwinStar Credit Union in  Lacey, Connection Credit Union in Silverdale, North Coast Credit Union in Bellingham, and Express Credit Union in Seattle.”

Rhode Island legalized the accounts in 2010 but in 2011 said they were still “in the initial stages” of getting a pilot running. I’m not sure if there are any credit unions offering a PLS account, but it would be legal for them to offer one. The same goes for Maryland  and Maine both have legalized the accounts but I’m not sure if there are any credit unions offering them.

The newest state is Connecticut. They just allowed prize-linked savings accounts and had their first winner in January 2014. You can read about it on CNN Money.

Iowa tried, but their legislation was shut down. I’m not sure if any of the other states have even tried.

Internationally, prize-linked savings accounts “have been offered in Argentina, Brazil, Colombia, Germany, Indonesia, Iran, Japan, Mexico, Oman, Pakistan, Spain, South Africa, Sri Lanka, Turkey, United Arab Emirates and Venezuela.”

I hope this helps!

Photo used here under Flickr Creative Commons.

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Megan Russell has worked with Marotta Wealth Management most of her life. She loves to find ways to make the complexities of financial planning accessible to everyone. She is the author of over 800 financial articles and is known for her expertise on tax planning.