Running a Legal Contest, Giveaway, or Sweepstakes in Canada (2026 Guide)

The short version: In Canada, a contest that awards prizes purely by random chance is potentially illegal under the Criminal Code. The fix? Add a skill-testing question. That single requirement shapes everything about how Canadian giveaways work — and it’s not optional.

Giveaways and contests are one of the best ways to grow your brand in Canada. But Canadian contest law has real teeth. The Criminal Code, the Competition Act, and CASL (Canada’s Anti-Spam Legislation) all apply, and Quebec adds an entirely separate layer of regulation on top. Skip any of these and you’re looking at fines, void promotions, or worse.

This guide covers everything you need to run a compliant contest, giveaway, or sweepstakes in Canada in 2026.

Last verified: April 2026. Canadian contest law is relatively stable, but provincial rules (especially Quebec) can change. Always confirm current requirements before launching. This guide is informational — not legal advice.

Why Canada Is Different: The Skill-Testing Question

Here’s the thing that surprises most people about Canadian contest law: a purely random giveaway can be illegal.

Under the Canadian Criminal Code, running a promotional contest where prizes are awarded by pure chance — with no element of skill — may constitute an illegal lottery. This is fundamentally different from the US, UK, or Australia.

The solution is the skill-testing question (STQ). By requiring winners to correctly answer a mathematical or knowledge-based question before claiming their prize, you introduce an element of skill that takes the promotion out of lottery territory.

What makes a valid STQ:

• A mathematical question (e.g., “(25 x 4) + 17 - 3 = ?”)
• Must require genuine skill — not something trivially easy
• Must be answered without assistance
• Typically administered before the prize is awarded

What doesn’t count:

• “What color is the sky?” — too easy
• Multiple choice questions with obvious answers
• Questions where the answer is visible on the same page

This isn’t a technicality. It’s the foundation of Canadian contest compliance.

The Three Laws You Need to Know

1. The Criminal Code

The Criminal Code prohibits contests that combine three elements: a prize, a fee to enter, and selection purely by chance. Remove any one of these elements and you’re in the clear:

• Remove the fee: Make entry free (no purchase necessary)
• Remove pure chance: Add a skill-testing question
• Best practice: Do both — free entry plus an STQ

2. The Competition Act

The Competition Act requires specific disclosures in all contest advertising. You must clearly state:

• The number and approximate value of all prizes
• Any regional allocation of prizes
• Any facts that materially affect the odds of winning
• The eligibility requirements

The Act allows short rules in your marketing materials (the key details) that link to long rules (the full terms and conditions). Your long rules should cover everything: prizes, regional restrictions, STQ details, entry deadlines, odds of winning, and winner notification process.

3. CASL (Canada’s Anti-Spam Legislation)

If you’re collecting email addresses through your contest — and you almost certainly are — CASL applies. Key requirements:

• You need express consent before sending commercial emails to contest entrants
• Your contest entry form must include a clear opt-in for marketing communications
• Contest entry cannot be conditional on opting into marketing emails
• You must include an unsubscribe mechanism in all commercial messages

This means you can’t just add everyone who enters your contest to your email list. They need to explicitly opt in. Build this into your entry flow from the start.

The Quebec Problem

Quebec is Canada’s biggest contest law headache. The province — home to roughly 25% of Canada’s population — has an entirely separate regulatory framework.

What Quebec Requires

1. Registration with the Régie des alcools, des courses et des jeux (RACJ) — you must file your contest rules and pay a duty fee before launching
2. Copies of all advertising — submitted to the RACJ
3. French language requirements — all contest materials must be available in French if targeting Quebec residents
4. Duty fees — calculated as a percentage of total prize value
5. Specific disclosure requirements — beyond what the Competition Act requires

The Common Workaround

Many brands running national Canadian contests exclude Quebec residents entirely. This is legal and avoids the registration requirements, duty fees, and French language obligations.

If you exclude Quebec, make it clear in your rules: “Open to legal residents of Canada, excluding Quebec” or “Ouvert aux résidents légaux du Canada, à l’exception du Québec.”

If you want to include Quebec — and reaching 25% of Canada’s population is often worth the effort — budget extra time and money for RACJ registration and French translations.

Nine Essential Rules for Canadian Contests

1. Define Your Eligible Participants

Determine who can enter before you launch. Consider:

• Age limits — minors may not be able to claim prizes involving alcohol, travel, or age-restricted venues
• Geographic restrictions — are you including Quebec? All provinces?
• Employee exclusions — standard practice to exclude employees and their immediate families

2. Always Include a Skill-Testing Question

Non-negotiable for any contest with a random draw element. Prepare your STQ in advance and administer it to winners before prize fulfillment.

3. Eliminate Consideration (No Purchase Necessary)

The Criminal Code prohibits contests that require consideration (payment or something of value) to enter. This includes:

• Entry fees
• Required purchases
• Mandatory surveys or video watching

Always provide a free alternate method of entry that gives participants the same chance of winning.

4. Write Comprehensive Rules (Short + Long Format)

Short rules (for advertising): prize value, entry deadline, eligibility, odds, “no purchase necessary,” link to full rules.

Long rules (full T&Cs): everything above plus STQ details, privacy notice, release form requirements, intellectual property terms, dispute resolution, and winner notification process.

5. Respect Privacy Laws

Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) requires:

• Clear disclosure of what personal data you collect
• Explanation of how that data will be used
• Explicit consent for marketing use
• A privacy notice in your contest rules

Provincial privacy laws may also apply depending on where your entrants are located.

6. Secure Intellectual Property Rights

If your contest involves user-generated content (photos, videos, essays), your rules must address:

• Who owns the submitted content
• How you plan to use it (marketing, social media, etc.)
• Consent for use of entrants’ name and likeness

Get this in writing before the promotion launches.

7. Use Release Forms

Require winners to sign a release form before claiming their prize. The release should:

• Confirm compliance with all contest rules
• Release the sponsor from liability
• Grant permission to use the winner’s name and likeness
• Acknowledge any tax obligations

8. Address Tax Obligations

Good news: prize winnings in Canada are generally not taxable for the winner. However, there are exceptions:

• Travel prizes may incur travel taxes
• Prizes related to employment or business income may be taxable
• Interest earned on prize money is taxable

Include a note about potential tax obligations in your rules and winner release form.

9. Keep Records

Maintain complete records of your promotion for at least one year after the contest ends, including:

• All advertising materials
• Entry data
• STQ questions and answers
• Winner selection process documentation
• Communication with winners

How Canadian Rules Compare to Other Countries

Requirement	Canada	USA	UK	Australia	EU
Skill-testing question	Required	Not required	Not required	Not required	Not required
No purchase necessary	Required	Required	Recommended	Required for chance	Varies by country
Regional sub-rules	Quebec	State-by-state	Northern Ireland	State-by-state	Each member state
Prize tax for winners	Generally no	Yes (IRS reporting)	No	No	Varies
Anti-spam law	CASL	CAN-SPAM	UK GDPR	Spam Act 2003	GDPR

For more on international contest law, see our guides for US state-by-state laws, UK giveaway law, EU giveaway law, and Australian trade promotion law.

Run Legal Giveaways with Confidence

Choose compliant campaign types:

• Bonus Entry Giveaway — Legal sweepstakes structure
• Leaderboard Giveaway — Transparent rankings
• Reward Programs — Compliant incentive structures

Built-in compliance features:

• Fraud Detection — Protect contest integrity
• Fair Winner Selection — Random, auditable draws
• Official Rules Templates — Built into every campaign

TL;DR

Running a legal contest in Canada comes down to four essentials:

1. Add a skill-testing question — pure random draws are potentially illegal under the Criminal Code.
2. Make entry free — no purchase necessary, no entry fees, no mandatory surveys.
3. Handle Quebec deliberately — either include it (with RACJ registration and French materials) or explicitly exclude it.
4. Follow CASL — contest entry can’t equal email list subscription. Get explicit consent.

Get the fundamentals right and Canadian contests are straightforward. Start building your campaign with KickoffLabs — our platform handles the mechanics while you focus on growing your Canadian audience.

Disclaimer: This guide provides general information about Canadian contest and giveaway laws. It is not legal advice. Federal and provincial regulations can change, and requirements vary by jurisdiction. Consult a qualified legal professional before launching any promotion in Canada.

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