If you’ve decided to run a contest, giveaway or sweepstakes you’ll also want to make sure everything is above-the-board (and prevent any legal issues). In order to do that in the U.S. you’ll want to have a basic understanding of the laws in your state and the United States in general.
We’ll start with some basics and then discuss the specific states below.
Types of Giveaways in the U.S.
There are three different categories of giveaways and it’s important that you use the name of the type of giveaway in the right way to avoid misunderstanding that could result in a legal issue later on. Read our complete post on the types of giveaways are contests, sweepstakes, and raffles.
Here is a recap of the different giveaway types.
General Laws in the U.S. For Giveaways
When running a giveaway, it’s important to know that lottery and gambling laws prohibit promoting any giveaway that has all three elements of prize, chance, and consideration. By U.S. rules, that is an illegal giveaway, and at least one of the three would have to be eliminated.
Federal anti-gambling laws apply to any giveaway or contest, especially if it’s conducted online. Overall, though, any contest or sweepstakes must declare the odds of winning, the date the winner will be selected, and other key details for transparency. Sweepstakes must not require a purchase to enter.
And don’t forget our Best Practices for Making Contests Legal and Transparent.
Specific Laws by State
Some states have additional requirements or restrictions. If either your business or any of your entrants reside in these states, the following laws apply.
Alabama
Any sweepstakes involving alcohol must be pre-approved by the state’s alcohol control board. If your contest does not involve alcohol then you must simply comply with the general U.S. giveaway laws outline above.
Alaska
Contests and sweepstakes are subject to general U.S. promotion law. Be sure to consult your legal advisor and/or reach out to the state’s relevant department.
Arizona
There are three things to consider in Arizona beyond the standard U.S. promotion laws.
- Skill-based contests that require a product purchase must be registered with the state’s Attorney General.
- Product prices must not be increased during the contest period.
- A list of winners must be sent to the state within 10 days of awarding the prize(s).
Arkansas
Contests and sweepstakes are subject to general U.S. promotion law.
California
In California no sweepstakes or contest may require a purchase of any sort, including contest submission fees. Any sweepstakes or contest involving alcohol must not require entrants to visit a certain premise and must be open to all residents. General U.S. promotion laws apply after that.
Colorado
No sweepstakes or contest may require a purchase of any sort, including contest submission fees. For mail-in events, entrants must receive detailed disclosures, e.g. that they have not yet won, that purchase is not required and will not increase their odds of winning, the value of the prize(s), and the chance of winning. General U.S. promotion laws apply after that.
Connecticut
Skill-based contests are permitted to require a submission fee on a case-by-case basis. Check with your the gaming department in the state to clarify if your contest is allowed to require a fee. General U.S. promotion laws apply after that.
Delaware
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Florida
Prizes worth at least $5,000 must be bonded and registered 7 days prior to the sweepstakes’ opening date. The list of winners must be provided to anyone who requests it. General U.S. promotion laws apply after that.
Georgia
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Hawaii
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Idaho
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Illinois
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Indiana
Any sweepstakes involving alcohol must be pre-approved by the state’s alcohol control board. General U.S. promotion laws apply after that.
Iowa
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Kansas
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Kentucky
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Louisiana
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Maine
Any sweepstakes and contests open to minors may not collect health or personal information without consent from a parent or legal guardian. General U.S. promotion laws apply after that.
Maryland
No skill-based contest may require a purchase of any sort, including contest submission fees. General U.S. promotion laws apply after that.
Massachusetts
No sweepstakes or contest may include tobacco-related activities or prizes. General U.S. promotion laws apply after that.
Michigan
Sweepstakes must not require entrants to enter a store (assuming entrants haven’t otherwise visited the location to make a purchase or attend a sales presentation). Distributing entry forms solely in-store constitutes consideration. No sweepstakes or contest may include tobacco-related activities or prizes. General U.S. promotion laws apply after that.
Minnesota
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Mississippi
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Missouri
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Montana
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Nebraska
No sweepstakes or contest may require a purchase of any sort, including contest submission fees. General U.S. promotion laws apply after that.
Nevada
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
New Hampshire
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
New Jersey
No sweepstakes or contest may require a purchase of any sort, including contest submission fees. General U.S. promotion laws apply after that.
New Mexico
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
New York
Prizes worth at least $5,000 must be bonded and registered 30 days prior to the sweepstakes’ opening date. The list of winners must be provided to anyone who requests it, as well as registered with the state. General U.S. promotion laws apply after that.
North Carolina
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
North Dakota
No skills-based contest may require a purchase of any sort, including contest submission fees. General U.S. promotion laws apply after that.
Ohio
Sweepstakes must not require entrants to enter a store (assuming entrants haven’t otherwise visited the location to make a purchase or attend a sales presentation). Distributing entry forms solely in-store constitutes consideration. General U.S. promotion laws apply after that.
Oklahoma
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Oregon
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Pennsylvania
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Rhode Island
Retail businesses running sweepstakes with a total prize pool worth more than $500 must register their campaign with the state. General U.S. promotion laws apply after that.
South Carolina
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
South Dakota
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Tennessee
Sweepstakes winners must not be required to accept publicity releases in perpetuity. General U.S. promotion laws apply after that.
Texas
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Utah
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Vermont
No sweepstakes or contest may require a purchase of any sort, including contest submission fees. Those who request a list of sweepstakes winners must not be required to pay for postage. Any sweepstakes involving alcohol must be pre-approved by the state’s alcohol control board. General U.S. promotion laws apply after that.
Virginia
Entrants must not be required to visit a specific location in order to enter. No sweepstakes or contest may include tobacco-related activities or prizes. General U.S. promotion laws apply after that.
Washington
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
West Virginia
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Wisconsin
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Wyoming
Contests and sweepstakes are subject to general promotion law. (Consult your legal advisor and/or reach out to the state’s relevant department.)
Wrapping Up
We hope you found this guide helpful. Remember, these are basic guidelines, and you should always consult with an attorney or other legal advisor when developing your contest or sweepstakes. It’s better to do your homework and ensure full compliance than to launch with potential legal issues lurking!
Read more Legal Giveaway Best Practices with the next chapter:
8. Best Practices in the UK
Regulations you need to be aware of before running your giveaway in the UK.
