A Sweepstakes is a campaign in which entrants can win a prize based on chance. A Lottery requires purchase, payment, or other consideration (the contestant has to buy something, such as a ticket), chance, and a prize. Private lotteries are illegal under state law.

Is a giveaway legal?

A Giveaway is technically not a legal term at all, but can be used interchangeably with the term Sweepstake in blog posts or conversationally. But when you are using legal terms (such as in your rules and regulations), you should use contest or sweepstake.

Are drawings legal?

Drawing In the state of California, raffles and lotteries are illegal if a person is required to purchase a ticket or make a donation in order to be eligible to win the contest. For events such as a Casino Night, the term drawing must be used instead of the term raffle.

What is the difference between a giveaway and a sweepstakes?

To keep a giveaway contest legal, you need to eliminate one of the elements of a lottery. If you want to have a giveaway with the winners chosen randomly, your giveaway will probably be a sweepstake. You cannot, however, charge people for tickets or require that they buy something to enter.

Do you have to pay to enter a sweepstakes?

Dont pay to enter a sweepstakes or to collect a prize. Legitimate sweepstakes are free and by chance. It is illegal to require you to buy something or pay to enter or increase your odds of winning. If you receive a notice stating that youve won a prize, be mindful of the email address.

What is considered an illegal lottery?

When you hear “no purchase necessary”, this is why. If your customers pay a fee for a chance to win a prize and the free method of entry is too difficult to redeem, you are running an illegal lottery.

Why do companies say no purchase necessary?

No Purchase Necessary Laws Around the World. No Purchase Necessary Laws essentially prevent chance-based prize promotions from asking people to provide payment to enter, unless a free entry alternative is readily available.

Why do all contests Say No purchase necessary?

Youll also see a related disclaimer in sweepstakes rules: A purchase will not affect your chances of winning. That means that companies cannot let people enter and then disqualify them if they dont buy something, and they cant give better odds to people who do buy their products.

How do running sweepstakes make money?

The most direct way to earn money with sweepstakes is by simply winning it. There are many contests and sweepstakes giving away cash at any given time. Some give away smaller cash prizes, but those $5 and $10 prizes can add up quickly! Others are mega sweepstakes giving away $50,000 or more.