Laws and Rules for Sweepstakes
It is important to understand the difference between a sweepstakes, contest, and a lottery. In a sweepstakes, winners are chosen randomly from all participants. In a contest, the winners’ entries are usually judged and are based on a skill or criteria. In a lottery, winners are chosen at random, yet in order to enter, the participant must pay. A payment is called a consideration. Only states can hold lotteries, so all private lotteries are considered illegal.
At a Federal Level, Gambling (or lottery) must have 3 elements: Prize, Chance, and Consideration. To avoid being classified as an illegal lottery in any state, a promotion can only have 2 of the 3 elements. Be mindful, in many states, consideration can mean anything of value, including a fee or even a significant effort (i.e., time spent shooting/submitting a photo, etc.)
Here are three scenarios:
- Prize + consideration + chance = illegal lottery or gambling
- Prize + consideration = legal contest (in most jurisdictions)
- Prize + chance = legal sweepstakes
All sweepstakes in the United States must meet the following regulations:
- No purchase necessary. A particpant can enter the sweepstakes without buying a product or service.
- Winners are required to pay taxes on prizes they win.
- Many Jurisdictions have additional regulations to protect consumers from deceptive practices.
Good Faith Effort Regarding Legal Compliance
majikbonus.org and it's affiliates have in good faith reviewed the US Federal and each US State regulations regarding sweepstakes and believe we have complied with all regulations. The sections below outline each state statute applicable to our research. However, law is complex and ever changing, in addition, technology is constantly changing making it difficult to truly verify that each player is using the features intended for their jurisdiction.
If for any reason your office finds any of our services, offerings, or features not compliant with your jurisdiction, please contact us immediately with a full description of the device you are using, operating system (name and version), browser (name and version), the Internet Service Provider being used, and whether or not you are connected to our services via a Virtual Private Network, or a corporate network so that we can isolate the issue and improve our security to ensure compliance with the law.
You may reach us directly on our Contact Us Form.
Good Faith Effort Regarding Protection From Fraudulant Banking Activities
majikbonus.org and it's affiliates have partnered with prestigious and well established banking institutions in order to protect for KYC and AML. These services are provided by Stripe, PayPal, and Venmo.
State Specific Assertions
AL | AK | AZ | AR | CA | CO | CT | DE | DC | FL | GA | HI | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MI | MN | MS | MO | MT | NE | NV | NH | NJ | NM | NY | NC | ND | OH | OK | OR | PA | PR | RI | SC | SD | TN | TX | UT | VT | VA | WA | WV | WI | WY
Alabama [Ala. Code 13A-12-20]
Sweepstakes: are allowed as long as participants do not pay consideration. Alabama does not consider any of the following considerations.
- Paying postage to request or return an entry form
- A participant advertising the promotion to friends or relatives
- A participant going to a retail store
- A sponsor benefiting from increased sales as a result of the promotion
Alaska [Alaska Stat. 11.66.280]
Sweepstakes: are allowed as long as participants do not pay consideration.
- Sweepstakes must include a free method of entry.
- If a sweepstakes ticket is combined with a product that has never been offered for sale outside the sweepstakes promotion, the sweepstakes is illegal gambling.
Arizona [Ariz. Rev. Stat. 13-3302]
Sweepstakes: are allowed as long as participants do not pay consideration.
Arkansas [Ark. Code 4-102-106]
Sweepstakes: are allowed as long as participants do not pay consideration.
- In-package sweepstakes are allowed as long as there is a free alternative method of entry and the sponsor follows all Prize Promotion Laws prize disclosures.
Prize Promotion Laws
- These laws come into effect in Arkansas when a sponsor offers a prize with the sale of a product or services.
- Arkansas Prize Promotion Act includes written disclosure requirements, prohibited practices to prevent misrepresentation and a requirement to award the promised prizes.
California [Cal. Bus. & Prof. Code 17539.1]
Sweepstakes: are allowed as long as participants do not pay consideration and the sponsor follows all Prize Promotion Laws prize disclosures.
Prize Promotion Laws - California -Contests
- Sponsor is required to provide a refund to any participant unable to participate in the contest through no fault of his or her own and who requests a refund in writing within one year.
- Awarding the prize cannot be conditioned upon a minimum number of entries or contest participants.
- Exempt from providing refunds are: sporting events, performances, tournaments of skill, power or endurance between participants who were actually present at the contest
Prize Promotion Laws - California- Gifts as Sales Incentives
- The sponsor cannot tell a consumer that they won a gift and in order to receive the gift: 1) the consumer must make a purchase, or 2) pay unreasonable shipping or handling charges.
Prize Promotion Laws - California- Telemarketing
- If a prize or a gift is offered as part of a telephone solicitation campaign, the sponsor must register the campaign with the state and disclose the rules to the consumer or participant
Colorado [Colo. Rev. Stat. 6-1-803]
Sweepstakes: are allowed as long as participants do not pay consideration and the sponsor follows all Colorado Consumer Protection Act laws.
Promotional Laws - Colorado Consumer Protection Act
- Contests or sweepstakes promoted via direct mail solicitation cannot require the purchase of a product or payment of any fee to participate.
Connecticut [Conn. Gen. Stat. 42-297]
Sweepstakes: are allowed as long as participants do not pay consideration.
Delaware [Del. Code tit. 11, 1408]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
District of Columbia [D.C. Code 3-1323]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Florida [Fla. Stat. 849.094]
Sweepstakes (or as FL calls them, Game Promotion): are allowed as long as the sponsor awards the prize based on chance. Sweepstakes offered in Florida whose prizes exceed $5,000 in Approximate Retail Value must be bonded and registered with the state.
Florida Registration, Bonding, and Operational Requirements for sweepstakes that exceed $5,000 in Approximate Retail Value of all prizes combined:
- Registration Requirements: sweepstakes with aggregate prizes valued at more than $5,000 need to register with the Department of Agriculture and Consumer Services.
- Bonding Requirements: Sponsors must establish a trust account or provide a bond equal to the Approximate Retail Value of all prizes combined if the prizes exceed $5,000 or more and notify the Department of Agriculture and Consumer Services that a trust or bond has been established.
- Operational Requirements: Sponsors must publish the Official Rules online. In Florida, Official Rules must be posted in retail stores where the sweepstakes is available and Abbreviated Official Rules must be included in all printed advertisements. Additionally, the sponsor must file a winner's list for all winners that received prizes valued at $25 or more.
Georgia [Ga. Code 10-1-830]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Promotional Laws - Georgia Fair Business Practices Act
- Prizes cannot be awarded based upon playing a game on a computer mechanical device or electronic device at a place of business in Georgia.
Hawaii [Haw. Rev. Stat. 712-1220]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Idaho [Idaho Stat. 18-3801]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Illinois [Comp. Stat. Ch. 815]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Indiana [Ind. Code 24-8-3-2]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Iowa [Iowa Code 714B]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Iowa Prizes and Gifts Laws
- Contest may not be held at a school or amusement concession and the contest may not exclusively utilize a gambling device.
- A sponsor of a prize may not ask a person to buy merchandise, pay or donate money as a condition of awarding a prize or as a condition of allowing the person to receive, use or compete for a prize.
- A sponsor of a prize cannot charge money to provide information about a prize unless the sponsor first gives a person a written disclosure statement.
- Iowa Prize Promotion Law lists specific information that must be included in the prize disclosure notice and prohibits certain practices that may mislead participants or consumers.
Kansas [Kan. Stat, 21-6403]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Kansas Unfair Trade and Consumer Protection Laws
- If a sponsor tells the recipient that he/she has been or may be eligible to receive a prize, the sponsor must provide disclosures and further information regarding any obligations or actions required to receive the prize.
- Kansas prohibits practices that may mislead participants or consumers.
Kentucky [Ky. Rev. Stat. 365.055]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Kentucky Unfair Trade Practices Laws
- If a sponsor mails recipient advertising that says he/she has won a prize, the sponsor must provide prominent, conspicuous and clearly stated disclosures and further information regarding any obligations or actions required to receive the prize.
Louisiana [L.A. Rev. Stat. 51:1721]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Louisiana Trade and Commerce Laws
- The sponsor must deliver the promised prize within 10 days.
- The sponsor cannot charge for shipping or handling of the prize, if the prize is advertised as free.
- Winners of promotions must be announced by one of the following methods; posted or printed list, scratch off tickets or cards, pull-tab tickets or cards, written or telephone contact of the winner(s). These requirements do not apply to promotions where only employees of the sponsor participate.
- If a sponsor makes a prize offer that includes an invitation or requirement for the consumer to participate in a sales presentation or promotional program in order to claim the prize, the offer must include a disclosure. If it's a written prize offer it requires a written disclosure. If it's a verbal, a verbal disclosure.
- When using Direct Mail in Louisiana to promote a sweepstakes or contests, the sponsor must include odds of winning each prize offered
Maine [Me. Rev. Stat. tit 17]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Maryland [Md. Code, Com. Law 13-305]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Massachusetts [Mass. Gen. Laws ch. 271]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Michigan [Mich. Comp. Laws 750.372a]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Michigan Prize Notices and Solicitations
- Michigan defines “requiring a participant to be present at a place of business for a chance to win a prize” a consideration, thus sweepstakes cannot require participants to be present in order to win.
- If a prize is offered as incentive to attend a sales presentation, the prize offer must come with a detailed disclosure statement of the obligations or actions the customer must take in order to be eligible to receive the prize.
Minnesota [Minn. Stat. 325F.755]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Minnesota Prize Notices and Solicitations
- In Minnesota, if a person has to pay money as a condition of receiving, entering, competing or acquiring information about a prize, the sponsor must provide the person with a written disclosure statement called a “prize notice”. There are specific statutory requirements for placement, font, and wording of the prize notice disclosures.
- If a participant pays money to enter a contest and wins, the sponsor must deliver to the winner the prize as described and promised within 30 days. The prize can be in the form of a voucher or a prize of equal or greater value, or a monetary payment of equal to the approximate retail value of the promised prize.
Mississippi [Miss. Att'y Gen. Op. no. 94-0725]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Missouri [Mo. Ayy'y Gen. Op. No. 70-83]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Montana [Mont. Code 30-14-1403]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Montana- Raffles
- In Montana any person or organization may offer a raffle.
- In Montana, raffles are defined as “form of lottery in which each participant pays valuable consideration for a ticket to become eligible to win a prize.”
- No license or permit is required to offer a raffle in Montana
- Raffle sponsors must own all the prizes before selling any raffle tickets and the value of the raffle prize may not exceed $5,000.
- Raffle sponsors may sell tickets only at events and only to participants within Montana.
- Sponsors may use the internet to advertise a raffle but it's prohibited to sell raffle tickets over the internet.
- All raffle rules must be available to the public before the sale of any tickets.
- Raffle sponsors must retain records for 12 months related to the proceeds, winners, and prize(s) awarded.
Nebraska [Neb. Rev. Stat. 86-228]
Sweepstakes (or as known in NE, gift enterprises): are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Nebraska Prize Promotions Act
- In a sweepstakes where participants can enter for a chance to win with the purchase of a product, the sponsor can require evidence of the purchase, as long as the payment of the product or service is not greater than it would have been without the promotion.
- In Nebraska, a consideration does not include filling out an entry form, entering by mail or telephone as long as the mailing fees are no greater than the postage of a first-class letter weighing 1 oz. or less.
Nevada [Nev. Rev. Stat. 598.135]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Nevada Deceptive Trade Practice Laws
- If a sponsor is offering a prize via a sales campaign and the sponsor tells a consumer that he/she has won a prize, the sponsor must give the prize to the consumer without obligation and within 30 days of making the presentation.
- Prize disclosures can be given verbally but if the prize disclosures are in writing, there are specific requirements for placement and font size.
- In Nevada, if a sponsor is offering a prize via a sales campaign and the sponsor tells a consumer that he/she has a chance to win a prize, the sponsor must deliver a written disclosure statement and refrain from certain prohibited practices.
- Disclosures and prohibitions do not apply if the consumer enters to participate in the promotion via mail, phone or retail store and if the consumer is not required to listen to a sales pitch.
New Hampshire [N.H. Rev. Stat. 358-O]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- New Hampshire Trade and Commerce Laws
- In New Hampshire, if a sponsor is offering a prize via a sales campaign and the sponsor tells a consumer that he/she has a chance to win a prize, the sponsor must disclose the requirements for receiving the chance to participate.
- No disclosure is necessary if all the participant has to do is mail an entry form, deposit an entry form at a retail establishment or call to enter by phone.
- No disclosure is necessary if the participant is not required to listen to a sales pitch or pay any sum of money for any product or service or item of value.
- If the sponsor tells a participant that he/she has won a prize, the sponsor must award the prize within 10 days without obligation or expense to the awardee.
New Jersey [N.J Stat. 5:19 and N.J. Att'y Op. 1-1980]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- New Jersey Unfair Business Practices Laws
- In New Jersey, a sponsor is not allowed to advertise that a person has won a prize and require that person to take certain actions or purchase any products or services or participate in a sales presentation in order to obtain the prize.
New Mexico [N.M. Code R. 12.2.2.6]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- New Mexico Consumer Protection Regulations – Game Promotion Rule
- New Mexico’s wide-ranging definition of what constitutes a consideration is “anything of pecuniary value”. In other words, anything of financial value including “any business advantage to the sponsor, user or promoter of the game promotion”.
- Game promotions that require skill or chance and a consideration from participants must include specific disclosures.
New York [N.Y. Gen. Bus 369-ee]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- New York Prize Award Schemes
- New York requires that all Sweepstakes offered to New York residents, whose aggregate prize values exceed $5,000 must register and bond the promotion with the New York Department of State.
- Sweepstakes rules or abbreviated rules must be posted in any participating retail locations and included in all advertisements.
- All sponsors must file a winner's list with the state at the conclusion of the sweepstakes.
- Prize promotion disclosures are required for all sweepstakes, except for those offered by retail stores as long as the promotion is incidental to the retail stores business and the only requirement to receive the prize is limited to the winner traveling to the store.
North Carolina [N.C. Gen. Stat. 75-33]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- North Carolina Consumer Protection and Prize Promotion Laws
- If a company represents that a person has won a prize, the company must provide the prize to the winner without obligation. Prizes must be provided within 10 days of making the representation.
- In North Carolina, a sponsor cannot tell every participant that they are a winner if the sponsor gives the same prize to more than 10% of all considered for receiving the prize.
- If a company offers a prize in conjunction with a sales promotion, the company must present written disclosures that are clearly and conspicuously placed next to the prize description.
- In North Carolina, disclosures apply to all sweepstakes or contests offered as part of a sales promotion.
- Excluded from disclosure requirements in NC, are contests in which consumers can compete for a prize by entering via mail, phone, or at a local retail store and are not required to listen to a sales presentation.
North Dakota [N.D. Att'y Gen. Op no. 98-L-132 and 98 and N.D. Cent Code 53-11-02]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- North Dakota Sports Amusement Laws
- In a 1998 opinion from the North Dakota Attorney General, it was indicated that contests charging a consideration are allowed as long as the sponsor provides a written disclaimer, in other words a ‘prize notice’.
- In North Dakota, the sponsor has an obligation to award the promised prize if the sponsor requires money from the participant as a condition of awarding, competing or receiving information about the prize and if the sponsor represents to the person that he/she has won the prize.
- In North Dakota, the sponsor must deliver the promised prize, voucher of the prize, alternate prize of equal or greater value or monetary payment of equal to the approximate retail value of the promised prize within 30 days.
Ohio [Ohio Rev. Code 4719.01]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Ohio Anti-Gambling Laws
In 2013, in an effort to combat by internet cafes, Ohio changed its views on what is seen as a consideration:
- If less than 50% of the goods or services sold by a sponsor in exchange for game entries are used or redeem by the participant at any one location.
- If less than 50% of the participants who purchase goods or services at one location do not use the goods or services sold.
- There is a consideration if a sponsor pays out in prize money more than 20% of the gross revenue received at one location.
- There is a consideration if a participant pays for more than the approximate retail value of the goods or services offered by the sponsor in exchange for one or more entries.
- In other words, like in all other states, Ohio doesn't want you selling entries to a sweepstakes by exchanging worthless or low value products for entries.
Oklahoma [Okla. Stat. 21-996.1]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Oklahoma Consumer Disclosure of Prizes and Gifts Act
- In Oklahoma, it's illegal to notify a person that they have won a prize and that that person must pay money or rent any goods or services in order to receive that prize. This also includes asking the winner to pay unreasonable shipping and handling charges in order to receive the prize.
Oregon [Or. Admin. R. 137-020-0430]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Oregon Administrative Rules
- In Oregon, like in all states, it is illegal for a business to make any false or misleading statements about a prize, contests, or sweepstakes used to promote a business.
- Oregon requires that “Consumer Disclosure” or also known as “Official Rules” disclosures be clear and conspicuous and printed in a portion of the solicitation or advertising used to describe the prize.
- If direct mail is used to offer the promotion, disclosures must be included in the direct mail pieces.
Pennsylvania [73 P.S. 2241-2249]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Puerto Rico []
Sweepstakes: are allowed as long as participants do not pay consideration.
- Sweepstakes must include a free method of entry.
Rhode Island [R.I. Gen. Laws 42-61-1]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Rhode Island Prizes and Gifts Act
- In Rhode Island, sweepstakes that offer prizes valued at over $500 and offer entry opportunities at retail stores within the state require that the sponsor register the sweepstakes with the Rhode Island Secretary of State.
- Sweepstakes rules must be clearly posted, and the sponsor must maintain records of winners and prizes awarded for 6 months.
- Rhode Island limits the shipping and handling fees charged to receive a prize.
- If a sponsor represents that a person has won a prize, the sponsor must provide the prize to the winner without any obligation or expense to the winner.
- If an individual or an organization delivers a written or digital notice that tells the recipient that he/she has been or may be eligible to receive a gift, the sender must provide disclosures and further information. There are specific statutory requirements for placement, font, and wording of the disclosures.
- Promotion disclosures or prize notifications are not required if the participant can submit an entry by mail, phone or at a local retail store and is not required to be present or listen to a sales presentation.
South Carolina [S.C. Code 37-15-10]
Sweepstakes: re allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- South Carolina Prizes and Gift Act
- South Carolina requires that sponsors of sweepstakes or contests provide disclosures and further information about the promotion and prizes (i.e. Official Rules) offered. There are specific statutory requirements for placement, font, and wording of the disclosures when a company combines a promotion with a sales campaign.
- South Carolina prize promotion law prohibits deceptive practices such as simulated checks or charging for excessively for shipping and handling of prizes.
- If a sponsor represents that a person has won a prize or gift, the sponsor must deliver that prize within 10 days and without any expense to the recipient.
South Dakota [S.D.C.L 37-32-1]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- South Dakota Codified Laws
- South Dakota Supreme Court defined a game of chance as “a contest wherein chance predominates over skill”.
- South Dakota prize promotion law focuses on the requirements for Prize Notices. These notices must be provided to the participant prior to entering the sweepstakes or contest.
- South Dakota has specific requirements for the placement, font and wording of the prize notice and prohibits any actions that may deceive the recipient of the prize notice.
- If a sponsor tells a person that they have won a prize the sponsor cannot require any type of payment as a condition to receiving the prize before giving the person a written prize notice.
- In South Dakota, you must give the prize to the person attending the sales presentation before the sales presentation starts.
- Exemptions to providing a Prize Notice in South Dakota:
- If winners are not selected by chance or any element of chance.
- If the recipient can evaluate any products or services purchased for at least 7 days and can obtain a complete refund or cancel within 30 days.
- If the recipient can keep the prize offered in the promotion without further obligation.
- If the recipient is not required to pay for the item offered in the promotion or has to attend any sales talk.
Tennessee [Tenn. Code 47-18]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Tennessee Consumer Protection Act
- Tennessee law defines gambling as “risking anything of value for a profit whose return is to any degree contingent on chance”.
- If a sponsor is running a sweepstakes or a contest for the purpose of a sales campaign and it tells the customer that he or she may receive a prize in exchange for the purchasing a product or service, incurring a financial obligation, visiting business, attending a sales presentation or contacting a salesperson, the sponsor must provide prize disclosures in Tennessee.
- In Tennessee, a sponsor offering a contest or a sweepstakes as part of a sales campaign may not make the receipt of a prize contingent upon the use of the winner’s name for promotional purposes. The sponsor may obtain expressed written or oral consent from the winner before using the winner’s name for promotional purposes in connection with mailing promotions to others.
- If a sponsor requires payment as a condition to competing, receiving or obtaining information about a prize, the sponsor must provide a prize notice to the potential participant. Prize disclosures must follow specific requirements as to placement and font size.
Texas [Tex. Bus & Com 621]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Texas Contest and Gift Giveaway Act
- If a sweepstakes sponsor is using direct mail to offer the promotion and the prizes offered are valued at $50,000 or more, the sponsor may accept entries via mail, but the sponsor cannot use the mailing address of the participants for any other purpose than documenting the entry for drawing.
- Texas restricts sweepstakes sponsors to conducting only one promotion that uses the mail in every 30-day period.
- If a company offers a gift or prize as incentive to attend a sales presentation, the company must provide in writing the details about the sales presentation and the prize.
- If a company offers a gift or prize as incentive to attend a sales presentation, the company must maintain records about solicitations, prizes, winners or recipients and make those records available to anyone, including the Texas Attorney General.
- The requirements above do not apply to promotions that take place at trade shows or business conferences as long as the participants are all attendees of the events.
Utah [Utah Code 13-28-1]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Utah Notices Regulation Act
- Utah defines a prize notice as a communication to an individual that represents that he or she may be selected to receive a prize and if there is a condition of payment or donation or the individual is invited to contact the company or find out more about the prize placement.
- Prize notice disclosures have specific placement, font and language required in Utah.
- In Utah, if a sponsor represents that a person has won or may win a prize, the sponsor must provide a written prize notice to the participant or winner before receiving any payment.
- In Utah, if a sponsor offers a prize as an incentive for their participants to see, hear, or attend the sales presentation, the presentation can’t begin until the sponsor tells the participant of the prize and awards it.
- It's good practice to have a prize notice or Official Rules as part of any sweepstakes and contests in Utah or any other state.
Vermont [Vt. Stat. tit. 13 2143b]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Virginia [Va. Code. 59.1-415]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Virginia Prizes and Gift Act
- Virginia does not see witnessing a demonstration or a similar event or going to a sponsor’s premises as consideration.
- Virginia prize promotion law prohibits deceptive practices such as simulated checks, invoices or charging for excessively for shipping and handling of prizes.
- If the sponsor tells a participant that he/she has won a prize, the sponsor must award the prize within 10 days without obligation or expense to the awardee.
- In Virginia, the sponsor must provide verbal or written disclosures to participants eligible to win a prize.
- Prize notices or disclosures need to include the sponsor name, the actions that need to be completed to win the prize, any money that the participant must pay to receive the prize, including shipping and handling or purchasing another product or service and any other relevant conditions. Written disclosures include placement, font and language requirements.
- In Virginia, there are no prize disclosure requirements if all the participant has to do to be eligible to win is to complete an entry form and as long as a participant is not required to listen to a sales pitch or pay money for any product or service.
Washington [Wash. Rev. Code 19.170.020]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Washington Prize Notice Promotion Laws
- In Washington, if a sponsor promotes their sweepstakes via direct mail or other printed materials saying that the recipient has or will be awarded a prize, then the sponsor must comply with specific disclosures that need to be included in the written offer or advertisement.
- In Washington, if a sponsor tells a participant that he or she has won, the prize must be awarded.
- Excluded from disclosure requirements are giveaway types of promotion where every participant receives a prize or a gift as long as:
- chance doesn't determine who wins.
- the consumer can return any purchase within 30 days for a full refund.
- the participant can keep the prize without obligation.
- the participant is not required to attend a sales presentation.
- the participant is not required to spend any money to receive the prize, including shipping or handling fees.
West Virginia [W. Va. 46A-6D-1]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - West Virginia Prizes and Gifts Act
- West Virginia does not view entering sweepstakes via entry form, mail-in form, toll-free phone, or visiting a retail location as consideration.
- West Virginia prize promotion law prohibits deceptive practices such as simulated checks or charging for excessively for shipping and handling of prizes.
- If the sponsor tells a participant that he/she has won a prize, the sponsor must award the prize within 10 days without obligation or expense to the awardee.
- If the sponsor tells a participant that he/she is eligible or has a chance to win the sponsor must provide prize disclosures.
- In West Virginia, prize disclosures can be verbal or written but if they're written there are specific requirements for placement, font and text.
- A promotion is excluded from prize disclosure requirements if in order to enter the participant only has to complete a web entry form or mail-in entry form or local store entry form or toll-free phone call and the participant is not required to listen to a sales presentation or purchase any good or service.
Wisconsin [Wis. Stat. 945.01(5)(b)2, Wis. Stat. 100.171(3) (2014)]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Wisconsin Prize Notices
- Like all states, Wisconsin views Payment of any kind as a consideration.
- Wisconsin views the following not considerations:
- Listening to a radio program.
- Watching a TV program or commercial.
- Completing and mailing an entry form.
- Providing a proof of purchase.
- Completing an entry form at an event as long as the entry form can be submitted in an area in which an admission fee is not required.
- Visiting a retail store as long as participants are not required to make a purchase or pay for admission.
- Wisconsin’s in-pack or purchase-to-enter sweepstakes promotions are legal as long as the following conditions are met:
- A free method of entry (i.e. Alternative Method of Entry) is available to all.
- Product packaging contains Abbreviated Rules with methods of play and promotion End Date.
- Sponsor provides the retailer with enough free play forms or codes.
- Sponsor does not misrepresent chances of winning.
- Sponsor randomly seeds or distributes all game pieces and retains records of the random distributions for at least 365 days.
- Sponsor randomly Awards all prizes if the game pieces are not used.
- The name and addresses of all winners with prizes over $100 must be available to the state of Wisconsin upon request.
- In Wisconsin a prize notice disclosure is required when:
- The sponsor represents that a person has won or is eligible to win a prize. The sponsor may not request or accept payment from the winner before the winner receives the written prize notice.
- The sponsor is allowed to offer a prize as part of an incentive to attend a sales presentation, but the presentation can’t begin until the sponsor tells the participant of the prize and awards it.
- In general, it's advisable that any sponsor includes written prize notice disclosure within the Official Rules of any promotion that charges a consideration in Wisconsin.
Wyoming [Wyo. Stat, 40-12-201 (2014)]
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- Wyoming Promotional Advertising of Prizes
- There are specific statutory requirements for placement, font, and wording of the prize notice disclosures.
- In Wyoming, if the sponsor represents that a person has won or is eligible to win a prize, the sponsor may not request or accept payment from the winner before the winner receives the written prize notice.
- Sponsors are allowed to offer a prize as part of an incentive to hear, view or attend a sales presentation but the presentation can’t begin until the sponsor tells the participant of the prize and awards it.
- In general, it's advisable that any sponsor includes written prize notice disclosure within the Official Rules of any promotion that charges a consideration.
Source of Inspiration and Content: https://www.sweeppeasweeps.com/sweepstakes-and-contest-rules-by-state.html