Running a Sweepstakes or Contest in the US
A Practice Note providing guidance on the key legal issues for planning and advertising sweepstakes and contests in the US. It explains the fundamental differences between chance-based sweepstakes and skill-based contests and how to structure them to avoid being classified as an illegal lottery by eliminating prize, chance, or consideration. It addresses critical topics such as the requirement for a free alternate method of entry (AMOE), drafting official rules that form a binding contract, and navigating state-specific registration and bonding requirements in jurisdictions like Florida, New York, and Rhode Island. The guidance also extends to modern promotional methods, covering the unique legal questions surrounding text-to-win campaigns and the risks associated with user-generated content. This Practice Note explores advertising disclosure requirements and the importance of protective provisions within the official rules to mitigate potential liability.
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