(a) This rule relates to §§102.07 and 108.061 of the Alcoholic Beverage Code.
(b) For purposes of the above referenced provisions of the Alcoholic Beverage Code, sweepstakes shall include prizes that are awarded to consumers on the basis of random chance or on the basis of some knowledge or skill demonstrated by the sweepstakes participant, as determined by a judge or judges selected by the sponsor for that purpose. If a prize is a private event or other prize awarded in accordance with Alcoholic Beverage Code §108.061(d) then subsections (k) - (q) of this section apply.
(c) Except as otherwise provided in this subsection, members of the manufacturer and wholesaler tier may offer a prize to a consumer if the offer is part of a promotional sweepstakes activity. Holders of a distributor's license may not offer a prize to a consumer if the offer is part of a promotional sweepstakes activity. Pursuant to Alcoholic Beverage Code §108.061(d), only brewers or nonresident brewers may offer a prize, including food, beverages, entertainment, recreation, gifts or attendance at a private event at a permitted or licensed retailer's premises.
(d) A promotional permit holder contracted by a member of the manufacturing tier may sponsor a sweepstakes on behalf of the manufacturing tier member.
(e) A person affiliated with the alcoholic beverage industry may not receive a prize from a sweepstakes promotion.
(f) A person must be 21 years of age or older to enter a sweepstakes promotion.
(g) Entry codes or entry forms on or in the caps, corks, labels, case cartons, or other materials packaged with, within, or printed on any packages of alcoholic beverages may be used as an entry mechanism provided:
  (1) such mechanisms do not grant a consumer's right to claim winnings; and
  (2) there is at the point of sale or on product packaging conspicuously displayed alternate means of entry available to the consumers.
(h) All sweepstakes entries are prohibited from requiring a purchase of an alcoholic beverage or the validation of any kind which requires a purchase of any alcoholic beverages.
(i) Except as specifically authorized by this section, and Alcoholic Beverage Code, §102.07 and §108.061, it shall be unlawful for any person to sell or distribute any alcoholic beverage in a container bearing any label, crown, or covering upon which there is printed or marked any word, letter, figure, symbol or character representative of or suggesting any game of chance, or to use or display any advertising so printed or marked.
(j) Except as authorized by Alcoholic Beverage Code §108.061(d) - (f), any sweepstakes promotion that includes prizes that are to be awarded on the basis of some knowledge or skill demonstrated by the sweepstakes participant may not be held or conducted on the licensed premises of a retailer or private club. Sweepstakes sponsors may, with the retailer's permission, place sweepstakes entry forms on retail premises.
(k) Except as authorized by Alcoholic Beverage Code §108.061(d) - (f), alcohol may not be awarded as a prize.
(l) Except as authorized by Alcoholic Beverage Code §108.061(d) - (f), a sweepstakes sponsored by a member of an upper tier may not be retailer specific and prizes may not be awarded at a retailer's premises.
(m) A brewer or nonresident brewer may conduct a private event at a retailer's premises or award other prizes at a retailer's premises only in accordance with the requirements of this section and Alcoholic Beverage Code §108.061(d) - (f).
(n) A prize awarded pursuant to Alcoholic Beverage Code §108.061(d) - (f) may include food, beverages, entertainment, recreation, gifts, or attendance at a private event for the winners of the sweepstakes and other guests of the sponsor of the event.
(o) The name or location of the premises where a private event described by subsection (n) of this section is held or prizes are awarded may not be mentioned in any advertising related to the sweepstakes.
(p) A sweepstakes authorized by Alcoholic Beverage Code §108.061(d) - (f) may be conducted at a permitted or licensed premises and the prize may be awarded to the winners at the permitted or licensed premises at which the sweepstakes is conducted.
(q) If a licensee or permittee conducts a private event authorized by Alcoholic Beverage Code §108.061(d) - (f) at a retailer's premises:
  (1) the licensee or permittee shall pay the retailer the fair market value for the use of the premises;
  (2) the retailer must retain control of the sale and service of alcoholic beverages at the private event;
  (3) product served at the private event must be served by the retailer; and
  (4) the upper-tier sponsor authorized in subsection (m) of this section may purchase product for attendees from the retailer.

Source Note: The provisions of this §45.106 adopted to be effective September 28, 1994, 19 TexReg 7271; amended to be effective August 21, 2000, 25 TexReg 8027; amended to be effective February 23, 2006, 31 TexReg 1020; amended to be effective June 13, 2017, 42 TexReg 3002; amended to be effective February 12, 2018, 43 TexReg 758; amended to be effective September 1, 2021, 46 TexReg 5182