Is the Pope Leo Trading Card Offer an Illegal Lottery?

Before the ink was even dry on the proclamation of the new pope, commercialization efforts began.

Right out of the gate, Topps, the trading card company, began offering Pope Leo XIV commemorative cards. They come in two versions: the standard card and a very limited edition one with white smoke in the background. That version will only have 267 printed, each one individually numbered, like works of art.

Topps was taking orders on its website between May 8 and 11 only and charging $8.99 per card, with quantity discounts available. Within two weeks, the company promised to mail out the cards.

In addition, depending on how many cards Topps sells in total, the company will also print several dozen so-called “parallels” or “chase” cards — very fancy foil versions of various rarities and seed them randomly across all the orders. All purchasers will have a chance of getting one of these very rare cards instead of the standard “base” card.

*MOUSE PRINT:

The question arises, however, does this promotion constitute an illegal lottery? Lotteries are defined by state law. “Paying a price for the chance of a prize” is the typical definition.

For example, if Quaker Oats was to advertise that they have hidden a diamond ring in one of every ten thousand boxes of their oatmeal, they would violate state gambling laws. But consumer products companies can legally comply with the law by transforming the promotion into a sweepstakes. To do that, they eliminate the “price” element by offering a no-purchase-necessary means of allowing anyone the chance to win. Typically that is accomplished by asking consumers to send in a three-by-five card with their name and address.

In this case, however, Topps does not offer the public a free chance of receiving one of the theoretically more valuable limited-edition cards.

We asked the company’s PR representative to comment on this issue, and checked with two legal experts who specialize in lottery law. We only heard back from one expert who has sued companies for conducting illegal lotteries. He said, in part…

…more research is needed but “the question now is what consideration are the purchasers of the ‘pope card’ giving for the chance to get [one of the special] cards. This whole scheme by Topps just doesn’t pass the smell test.” –Bill Pannell

There apparently is a history of mostly failed legal attempts to hold trading card companies liable for gambling (see page 406) when they sell card packets some of which randomly contain more valuable cards.

What do you think? Does Topps cross the line by enticing the purchase of these pope cards because there is a chance the buyer will luck out and get one of the rare and potentially more valuable ones?