Gift Enterprise Law and Legal Definition

Gift enterprise refers to a scheme providing for the distribution of gifts which are based on chance or luck. It is a species of lottery whereby a scheme for transfer of gifts is dependant on chance. Gift enterprises are regulated by state law. It is also a type of sales promotion adopted by a seller. A seller induces sale for market value of goods by giving tickets to buyers that carry a chance to win a prize. In addition, a gift enterprise includes any scheme using the game of bingo or keno, any non telecommunication related, player-activated electronic or electromechanical facsimile of any game of chance, or any slot machine of any kind.

The following is an example of a case law defining gift enterprise :

Any person who sells or offers for sale any real estate or article of merchandise of any description whatever, with a promise to give any article for a consideration of the purchase by any person whether the object shall be for individual gain, or for the benefit of any institution shall be regarded as a gift enterprise. [SHEEDY v. DISTRICT OF COLUMBIA, 19 App. D.C. 280, 286-287 (D.C. Cir. 1902)].