Request By:
Ms. Catherine Staib
General Counsel
Department of Alcoholic Beverage Control
123 Walnut Street
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Suzanne Guss, Assistant Attorney General
This is in response to your request for an opinion of this office as to whether the underwriting of a $50,000 stakes race purse at Ellis Park Race Track by Stroh's Brewery Company violates KRS 244.500(1).
The issue presented is identical to the one addressed by this office in OAG 82-178, wherein it was determined that a tournament conducted by malt beverage manufacturers and sponsored by malt beverage licensees within the Commonwealth does not violate KRS 244.500(1). Since the issues are identical, the analysis remains the same. KRS 244.500(1) prohibits a licensee from offering a premium, gift or prize in connection with the sale of malt beverages. The facts presented do not appear to violate this provision. First, it is the manufacturer, Stroh's Brewery Company, and not the licensee, which is offering the "prize. " Second, the prize is not offered "in connection with the sale of malt beverages, " inasmuch as the purchase of such beverages is not required of persons who wish to participate in the race. Although the event might build good will for the Stroh's Brewery Company thereby indirectly increasing sales of its product, the relationship between the prize and the purchase of Stroh's products is so remote as to remove the event from the scope of KRS 244.500.
I trust this information adequately answers your question. If I can be of any further assistance, please contact me.