Tennessee § 39-17-506 - Lotteries, chain letters and pyramid clubs.

§ 39-17-506. Lotteries, chain letters and pyramid clubs.

A person commits an offense who knowingly makes or aids in the making of any lottery. For the purposes of this section, “makes or aids in the making of any lottery” does not include: Ownership or possession in this state of a lottery ticket originating from another state in which a lottery is lawful, if the ticket is not owned or possessed for the purpose of resale; provided, however, that nothing in this subdivision (a)(1) shall be construed as preventing the sale of lottery tickets or shares under the authority of the Tennessee Education Lottery Corporation; or the sale of tickets, shares, chances or similar records for an annual event pursuant to title 3, chapter 17, and part 6 of this chapter; The Tennessee Education Lottery operated pursuant to title 4, chapter 51, part 1; or An annual event operated pursuant to title 3, chapter 17, and part 6 of this chapter. For the purposes of this section, “makes or aids in the making of any lottery” includes the organization of, membership in, or solicitation of persons for membership in any chain letter club, pyramid club, or other group organized under any plan whereby anything of value to be given by a member of the club or group is to be given to any other member of the club or group, which plan includes any provision for the increase in membership through a chain process of new members securing other new members and thereby advancing themselves in the group to a position where the members in turn receive things of value from other members. An offense under this section is: A Class C misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is fifty dollars ($50.00) or less; A Class B misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is more than fifty dollars ($50.00) but less than two hundred fifty dollars ($250); A Class A misdemeanor if the aggregate amount of money involved in the lottery, chain letter, or pyramid club is two hundred fifty dollars ($250) or more but less than ten thousand dollars ($10,000); or A Class E felony if the amount of money involved in the lottery, chain letter, or pyramid club is ten thousand dollars ($10,000) or more. Acts 1989, ch. 591, § 1; 1994, ch. 856, § 2; 2003, ch. 297, §§ 6, 7; 2004, ch. 476, §§ 5, 6. Sentencing Commission Comments. This section combines prior code §§ 39-6-624 and 39-6-625 . Although such activities are prohibited as gambling, the commission included a special section to make the offense clear. Because of the special circumstances involved in these schemes, the penalty is based on the aggregate amount of money involved. In 1994, subsection (a) was amended to exempt from prosecution a person who possesses or owns an out-of-state lottery ticket, if the person did not possess or own the ticket for the purpose of resale. Compiler's Notes. Acts 2004, ch. 350, § 13 provided that the provisions of the act shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to the act unless such funds are specifically appropriated by the general appropriations act. The sentencing commission terminated June 30, 1995. Sentencing Commission Comments have been retained, but do not reflect 1995 or subsequent legislation. Cross-References. Law enforcement efforts, § 39-15-413 . Lotteries, Tenn. Const., art. XI, § 5. Lottery not gambling, § 8-47-127 . Lottery sales, title 39, ch. 17, part 6. Penalties for Class A, B and C misdemeanors, § 40-35-111 . Penalty for Class E felony, § 40-35-111 . Possession of gambling device or record, forfeiture, § 39-17-505 . State lottery proceeds, title 49, ch. 4, part 9. Tennessee Education Lottery Implementation Law, title 4, ch. 51. Tennessee Lottery Funds for Education Projects Loan Act of 2003, title 4, ch. 31, part 10. Violations indictable without prosecutor, § 40-13-104 . Textbooks. Tennessee Jurisprudence, 18 Tenn. Juris., Lotteries, §§ 3, 4. Law Reviews. Criminal Law in Tennessee in 1970 — A Critical Survey (Joseph G. Cook), 38 Tenn. L. Rev. 182 (1971). Attorney General Opinions. Lottery tickets as gambling devices, OAG 93-16 (2/22/93). Fund raising by “rubber duck races” at which valuable prizes are offered, OAG 97-025 (3/19/97). Constitutionality of ban on billboard advertisements promoting lotteries, OAG 99-039 (2/24/99). Unless and until the legislature enacts legislation implementing a state lottery, which would include authorization for the sale of lottery tickets statewide, a local government may enact an ordinance prohibiting the sale of lottery tickets within its jurisdiction, OAG 03-004 (1/17/03). “Reverse raffle” and “auction” involving paying money to win a prize is a prohibited lottery unless part of an annual event approved by the general assembly, OAG 03-049 (4/22/03). Poker tournaments charging an admission fee to play “Texas Hold'Em” for a chance to win a prize are not legal in Tennessee, OAG 05-159 (10/14/05).