1. John Steen
Chairman-San Antonio
José Cuevas, Jr.
Member-Midland
Steven M. Weinberg, MD, JD
Alan Steen Member-Colleyville
Administrator
October 1, 2008
Mr. Dewey Brackin, Attorney
600 Congress Avenue, Suite 3000
Gardere Wynne Sewell LLP
Austin, Texas 78701
RE: HEST TECHNOLOGIES; VIDEO SWEEPSTAKES
Dear Mr. Brackin:
This is in response to your letter of September 18, 2008, and our earlier discussions about the
Hest Technologies video sweepstakes. I agree with your view of the law as stated in your letter,
and its application to your client’s product, assuming the accuracy of the factual statements in
your letter.
I understand your client’s lottery program to operate in the nature of all legitimate lotteries. No
purchase is necessary to enter the lottery; no winning preference is given to those who purchase
products; and the prize associated with a particular entry is determined prior to entry.
The primary interaction of our code and a lottery turns on the question of whether the lottery is
conducted so as to constitute illegal gambling. If it is, any permittee allowing such activity on
licensed premises would do so in violation of our “place or manner” provisions. Alcoholic
Beverage Code §§11.61(b)(7), 61.71(a)(17), 16 Tex. Admin. C. 35.31. I agree that the authorities
cited in your letter, and others, stand for the proposition that a lottery does not constitute illegal
gambling if players are offered a fair and clearly stated opportunity to play the game without
purchase or payment of any consideration. Your client’s procedures and rules as stated satisfy
this requirement. Obviously, actual behavior may vary from these standards so as to make what
was lawful behavior unlawful.
Our code authorizes the use of sweepstakes or lotteries as a promotional tool for certain elements
of our industry. Alcoholic Beverage Code §§102.07(e); 108.061;16 Tex. Admin. C. 45.106. If
your client’s product is not used by those manufacturing and wholesale tier elements, then these
provisions are not implicated.
C:DOCUME~1bradeLOCALS~1TempMetaTempHEST TECHVideo Sweepstks Brackin(10-1).doc
P.O. Box 13127, Austin, Texas 78711-3127 (512) 206-3333 www.tabc.state.tx.us
An Equal Opportunity Employer

2. Mr. Dewey Brackin, Attorney
RE: HEST TECHNOLOGIES; VIDEO SWEEPSTAKES
October 1, 2008
Page 2
Finally, a licensee or permittee may not offer a coupon redeemable for the purchase of or
discount on, alcoholic beverages. 16 Tex. Admin. C. 45.101(b),(c). However, as you suggest,
cash prizes won through your client’s lottery may certainly be used to purchase alcoholic
beverages. Finally, like you, I do not believe that your client’s sweepstakes program constitutes
an unlawful inducement under our rule 45.106 because the play of the lottery is not connected to
the purchase of alcoholic beverages.
Please do not hesitate to call if you would like to discuss the matter further.
Sincerely,
Lou Bright
General Counsel
LB:lh
cc: Dexter Jones, Director of Compliance and Marketing Practices
C:DOCUME~1bradeLOCALS~1TempMetaTempHEST TECHVideo Sweepstks Brackin(10-1).doc
P.O. Box 13127, Austin, Texas 78711-3127 (512) 206-3333 www.tabc.state.tx.us
An Equal Opportunity Employer