This article was not written by nor reviewed by an attorney.  This contents of this article do not constitute legal advice.  The reader of the article waives Michelle Bradley d/b/a/ REC Networks of any liability in connection with the advice given in this article.

There are both state and federal implications in the answer to this question. 

State laws regarding the lottery

Before a station does a lottery related promotion, they should consult with state laws as each state may differ.  

This was the case at one time, but it no longer applies.  Today, there is no restriction on the location of NCE FM translators in the reserved band (88.1~91.9 MHz) and their program delivery method as long as the primary station is full-service (and not LPFM) and the both the translator and the primary station are in the reserved band and they are both commonly owned.

More than one FM translator for the same primary station cannot serve primarily the same area. 

If there are two translators for the same primary station that have overlapping service contours, the overlap is only allowed when the population in the overlapped area represents less than 50% of the population served by both translators.