What is the difference between a contest and a sweepstakes?
Sweepstakes and contests often get grouped together, and this causes many to assume they are the same. While sweepstakes and contests are both promotional marketing tactics, they have key differences that distinguishes them from each other.
Before we begin, it’s important to define the difference between a legal promotion and an illegal lottery. There are three possible elements to consider when structuring a promotion: prize, chance and consideration.
“Standard Lottery Rule”: Prize + Chance + Consideration = Lottery
If all three of the above elements are present in your proposed promotional plan, then one of the elements will need to be neutralized to run a legal promotion versus an illegal lottery according to state and Federal laws.
A sweepstakes is a random drawing. In order for a sweepstakes to be deemed legal, “consideration” needs to be eliminated from the mix, leaving prize and chance. This is why sweepstakes must have an alternate means of entry if a purchase is involved.
A contest is a promotion that involves skill, such as a photo or essay contest. In order for a contest to be deemed legal “chance” needs to be eliminated from the mix, leaving prize and consideration.
To learn more on the differences between a legal promotion and illegal lottery, read our Sweepstakes 101 blog.
Disclaimer- this article is to help your understanding of contest and sweepstakes laws by state, this is not a guide on creating contests or sweepstakes rules. If you are creating a contest or sweepstakes, we strongly recommend hiring an expert to put together rules for you. Please contact our experts if you’re interested in learning more.
Contest and Sweepstakes Laws by State
In order for a promotion to be legal, there are nationwide laws every promotion must follow. In addition to these laws, certain states have their own restrictions when it comes to contests and sweepstakes. For example, some states do not allow contests to be run that require a payment for entry. Below we have compiled a list of the different contest and sweepstakes laws by state.
Click on a state listed below to view the promotion laws specific to the selected state.
Alabama
i. All sweepstakes and contests in Alabama that involve alcoholic beverages must be submitted (with all marketing and advertising materials and the complete official rules) and pre-approved by the state alcohol control board.
ii. In Alabama, all other contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Alabama must still follow standard promotion law.
Alaska
i. In Alaska, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Alaska must still follow standard promotion law.
Arizona
i. Contests in Arizona that involve purchase of a product for entry must be registered with the state’s Attorney General. In addition, a sworn statement shall be submitted stating that the value of any product(s) associated with the contest was not increased during the promotion to increase sales. And lastly, within ten days of all prizes being awarded, a list of all contest winners must be given to the state.
ii. In Arizona, sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Arizona must still follow standard promotion law.
Arkansas
i. In Arkansas, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Arkansas must still follow standard promotion law.
California
i. In California, any contests or sweepstakes involving alcoholic beverages must follow the guidelines set forth by the California Department of Alcoholic Beverage Control. See all rules and regulations regarding alcoholic beverages here.
ii. Contests and Sweepstakes in California must still follow standard promotion law.
Colorado
i. In Colorado, contests cannot require a purchase for entry into the promotion. In addition, Colorado has a list of prohibited practices and required disclosures in regards to contests and sweepstakes that you can view here.
ii. Contests and Sweepstakes in Colorado must still follow standard promotion law.
Connecticut
i. In Connecticut, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Connecticut must still follow standard promotion law.
Delaware
i. In Delaware, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Delaware must still follow standard promotion law.
Florida
i. Sweepstakes “offering prizes totaling more than $5,000 must file with the Florida Department of Agriculture and Consumer Services (FDACS) seven days prior to commencement of the game promotion”- Florida Department of Agriculture and Consumer Services. See more detailed information here: https://www.fdacs.gov/Business-Services/Game-Promotions-Sweepstakes
ii. In Florida, contests do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Florida must still follow standard promotion law.
Georgia
i. In Georgia, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Georgia must still follow standard promotion law.
Hawaii
i. In Hawaii, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Hawaii must still follow standard promotion law.
Idaho
i. In Idaho, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Idaho must still follow standard promotion law.
Illinois
i. In Illinois, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Illinois must still follow standard promotion law.
Indiana
i. All sweepstakes and contests in Indiana that involve alcoholic beverages must be submitted (with all marketing and advertising materials and the complete official rules) and pre-approved by the state alcohol control board.
ii. In Indiana, all other contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Indiana must still follow standard promotion law.
Iowa
i. In Iowa, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Iowa must still follow standard promotion law.
Kansas
i. In Kansas, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Kansas must still follow standard promotion law.
Kentucky
i. In Kentucky, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Kentucky must still follow standard promotion law.
Louisiana
i. In Louisiana, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Louisiana must still follow standard promotion law.
Maine
i. In Maine, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Maine must still follow standard promotion law.
Maryland
i. In Maryland, contests cannot require a purchase for entry into the promotion.
ii. Sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Maryland must still follow standard promotion law.
Massachusetts
i. Any promotions relating to tobacco in Massachusetts is prohibited.
ii. In Massachusetts, contests and sweepstakes do not have any additional state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Massachusetts must still follow standard promotion law.
Michigan
i. Requiring promotion participants to visit a store is deemed consideration, and thus prohibited for sweepstakes in Michigan.
ii. Any promotions relating to tobacco in Michigan is prohibited.
iii. In Michigan, contests and sweepstakes do not have any additional state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Michigan must still follow standard promotion law.
Minnesota
i. In Minnesota, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Minnesota must still follow standard promotion law.
Mississippi
i. In Mississippi, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Mississippi must still follow standard promotion law.
Missouri
i. In Missouri, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Missouri must still follow standard promotion law.
Montana
i. In Montana, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Montana must still follow standard promotion law.
Nebraska
i. In Nebraska, contests cannot require a purchase for entry into the promotion.
ii. Sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Nebraska must still follow standard promotion law.
Nevada
i. In Nevada, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Nevada must still follow standard promotion law.
New Hampshire
i. In New Hampshire, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New Hampshire must still follow standard promotion law.
New Jersey
i. In New Jersey, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New Jersey must still follow standard promotion law.
New Mexico
i. In New Mexico, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New Mexico must still follow standard promotion law.
New York
i. Sweepstakes in New York with a prize pool valued at over $5,000 must be registered and bonded.
ii. In New York, contests do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New York must still follow standard promotion law.
North Carolina
i. In North Carolina, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in North Carolina must still follow standard promotion law.
North Dakota
i. In North Dakota, contests cannot require a purchase for entry into the promotion.
ii. Sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in North Dakota must still follow standard promotion law.
Ohio
i. In Ohio, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Ohio must still follow standard promotion law.
Oklahoma
i. In Oklahoma, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Oklahoma must still follow standard promotion law.
Oregon
i. In Oregon, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Oregon must still follow standard promotion law.
Pennsylvania
i. In Pennsylvania, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Pennsylvania must still follow standard promotion law.
Rhode Island
i. Sweepstakes offered at a retail location in Rhode Island with a prize pool valued at over $500 must be registered.
ii. In Rhode Island, contests do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in New York must still follow standard promotion law.
South Carolina
i. In South Carolina, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in South Carolina must still follow standard promotion law.
South Dakota
i. In South Dakota, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in South Dakota must still follow standard promotion law.
Tennessee
i. In Tennessee, winners are not required to submit an “in perpetuity” publicity release.
ii. Contests and Sweepstakes in Tennessee must still follow standard promotion law.
Texas
i. In Texas, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Texas must still follow standard promotion law.
Utah
i. In Utah, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Utah must still follow standard promotion law.
Vermont
i. In Vermont, contests cannot require a purchase for entry into the promotion.
ii. Sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Vermont must still follow standard promotion law.
Virginia
i. Requiring promotion participants to visit a store is deemed consideration, and thus prohibited for sweepstakes in Virginia.
ii. Any promotions relating to tobacco in Virginia is prohibited.
iii. In Virginia, contests and sweepstakes do not have any additional state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Virginia must still follow standard promotion law.
Washington
i. In Washington, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Washington must still follow standard promotion law.
West Virginia
i. In West Virginia, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in West Virginia must still follow standard promotion law.
Wisconsin
i. In Wisconsin, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Wisconsin must still follow standard promotion law.
Wyoming
i. In Wyoming, contests and sweepstakes do not have state-specific legal requirements that differ from the common promotion law. Contests and Sweepstakes in Wyoming must still follow standard promotion law.
