How to Run a Sweepstakes Legally

Brands run sweepstakes to grow email lists, drive social engagement, launch products, and reward customers. In the United States, sweepstakes are governed by federal and state laws that are specific about structure, disclosures, and filings.

This guide walks through the main legal steps, from planning through winner fulfillment. It's general information, not legal advice; have your rules reviewed for the places you run the promotion.

If your team is also deciding who should own the software behind the campaign, use this build-versus-buy promotion guide.

Step 1: Confirm Your Promotion Is a Sweepstakes

Before anything else, classify your promotion. U.S. law recognizes three types of prize promotions, each with different legal requirements:

If your promotion selects winners randomly and you plan to offer a prize, you're running a sweepstakes. The rest of this guide applies to you. If you're selecting winners based on skill or merit, you're running a contest — different rules apply.

For a deeper explanation of the three-element test, see our guide to sweepstakes vs contest vs lottery.

Step 2: Define Your Campaign Goals and Structure

Before drafting rules or building entry forms, define what you're trying to achieve. Your campaign goals determine the promotion structure, which in turn determines your compliance obligations.

Common sweepstakes goals and their structural implications:

• Email acquisition: Simple entry form, single entry per person, moderate prize value. Straightforward compliance.
• Social media engagement: Entry via follow, like, or comment, which generally aren't consideration. An off-platform entry form is good practice. Requires platform-specific compliance.
• Purchase-linked promotion: Entries earned through product purchase, with a mandatory free AMOE. More complex compliance — see our purchase sweepstakes guide.
• Instant win game: Immediate prize reveals. Requires odds disclosed for each prize — see our instant win guide.
• Brand awareness / reach: High-value prize and broad eligibility. If total prizes are more than $5,000, New York and Florida filings apply.

Step 3: Choose Your Prize Strategy

Your prize determines entry volume, regulatory obligations, and campaign economics. Key considerations:

• Prize value determines state registration. When total prizes are more than $5,000, New York and Florida require advance filing and a bond or trust account. Rhode Island's filing applies only to chance promotions run by Rhode Island retail establishments; online and national promotions don't file there. Factor this into your budget and timeline.
• Cash prizes are simplest. No fulfillment logistics, no valuation disputes. Tax reporting applies to cash and non-cash prizes alike: for 2026, issue a Form 1099-MISC to each winner who receives $2,000 or more in prizes from you during the year, valued at fair market value. See our sweepstakes tax reporting guide.
• Product prizes need an Approximate Retail Value (ARV). Your official rules must state the ARV of every non-cash prize. Use the manufacturer's suggested retail price or documented market value.
• Experience prizes carry liability. Travel, events, and experiences require additional terms covering cancellation, substitution, travel insurance, and companion eligibility.

For detailed prize selection guidance by campaign type and budget, see sweepstakes prize ideas.

Step 4: Draft Your Official Rules

The official rules document is the legal backbone of your sweepstakes. It functions as the binding agreement between sponsor and participants. Every sweepstakes, regardless of size, should have written official rules.

Ambiguous rules cause avoidable disputes: unclear notification deadlines, missing substitution clauses, and vague eligibility are common examples. For a clause-by-clause walkthrough, see our guide to writing sweepstakes official rules, or start from our official rules template.

Step 5: Set Up Your Free Entry Method (AMOE)

If entry is tied to a purchase or payment, you must offer a free Alternative Method of Entry (AMOE). Each free entry must have the same odds as a purchase entry, in the same drawing, for the same prizes. When entry is already free, such as a social follow or web form, a separate off-platform entry form is still good practice.

Valid AMOE options include:

• Online form entry: A web form that requires no purchase, subscription, or account creation
• Mail-in entry: A handwritten entry on a 3x5 card mailed to a designated P.O. box
• Text entry: Standard message rates are generally treated like postage, but premium-rate charges are consideration. Offer a free web or mail-in option alongside text entry.

Describe the free method in your official rules and make it easy to find from entry pages and advertising. A free option that's hard to find invites the argument that it isn't a real alternative. For complete guidance, see our AMOE guide and no purchase necessary overview.

Step 6: Check State Registration Requirements

A few states require advance filings for larger promotions. The thresholds are based on the total value of all prizes.

New York's 30-day advance filing requirement is the binding constraint for most national sweepstakes. Build this into your campaign timeline from day one. If filing isn't feasible, exclude New York and Florida residents in your eligibility terms. A general "void where prohibited" line doesn't replace registering or excluding. For full filing details, see our state registration guide or explore the interactive state law map for requirements in all 50 states.

Step 7: Build Your Entry Experience

With rules drafted and registration filed, build the actual entry experience. Key requirements:

• Link the official rules from every entry point. A direct link to the full rules — not a summary, not a popup excerpt — should be visible on every page where someone can enter.
• Display "No purchase necessary" clearly. For mailed sweepstakes, 39 U.S.C. §3001(k) requires it, along with "a purchase will not improve your chances," more conspicuously than other terms. Elsewhere no federal statute prescribes the wording, but the FTC Act and state laws require material terms to be clear and conspicuous, so include it on entry pages, in advertising, and in the rules.
• Check age at entry if your promotion has age restrictions, not just in the rules. The age of majority is 19 in Alabama and Nebraska and 21 in Mississippi, and alcohol promotions need 21+.
• Keep the AMOE equally accessible. If your primary entry is a web form, your free entry option shouldn't require a phone call to a hard-to-find number.
• Data collection must comply with privacy laws. Only collect information necessary for the promotion. Disclose how you'll use participant data. COPPA applies if you collect personal information from children under 13, and state privacy laws such as California's CCPA may apply depending on your business.

Step 8: Launch and Monitor

Once live, actively monitor your sweepstakes for compliance issues and irregularities:

• Verify entry integrity. Watch for duplicate entries, bot submissions, and entries from excluded jurisdictions.
• Document everything. Maintain records of entry volumes, AMOE usage, any issues that arise, and how they were resolved.
• Respond to inquiries promptly. Participant questions about rules, eligibility, or entry methods must be answered accurately and consistently.
• Don't change rules mid-promotion. If you must amend your official rules after launch, document the change clearly, notify existing entrants if material, and never reduce prize values or change winner selection methods retroactively.

Step 9: Select and Notify Winners

Winner selection must follow exactly the method described in your official rules.

If a winner doesn't respond within the deadline, or fails verification, select an alternate winner using the same documented process. For detailed guidance on random selection methods and documentation, see how to pick a random winner.

Step 10: Complete Post-Promotion Obligations

Your compliance obligations don't end when the winner is announced. Post-promotion requirements include:

The Complete Launch Timeline

Working backward from your desired launch date, here's the timeline you need to plan for:

Frequently Asked Questions

Do I need a lawyer to run a sweepstakes?

Not always, but have your rules reviewed. Revup generates an official-rules template from your promotion settings as a starting point; the software doesn't file state registrations or taxes for you. The sponsor is responsible for the applicable requirements, and high-value, multi-jurisdiction, or unusual campaigns often call for specialist advice. If you'd rather hand off the rules, registration and bonding, see Revup's managed sweepstakes administration.

Can I run a sweepstakes on social media without official rules?

You shouldn't. Facebook, Instagram, and YouTube require official rules for promotions, and the FTC Act and state laws require material terms to be clear and conspicuous. Check each platform's rules too: Facebook doesn't allow requiring or rewarding shares or tags, and LinkedIn doesn't allow giveaways on its platform. If entrants post to enter, they should use #contest or #sweepstakes under the FTC Endorsement Guides. See our FTC sweepstakes regulations guide.

What happens if I forget the AMOE?

If entry requires a purchase or payment and there's no free method, the promotion has all three lottery elements (prize, chance, and consideration). Consequences can include state attorney general action, participant lawsuits, and, for promotions using the mail, the federal lottery statute (18 U.S.C. §1302).

How much does it cost to run a compliant sweepstakes?

Budget for prize sourcing and delivery, platform fees, rules review, any applicable registration and bonding, and administration time. Obtain current quotes for your campaign rather than assuming a standard legal-cost range.

Can I change the rules after launching?

Only under limited circumstances, and never in ways that disadvantage existing entrants. Extending the promotion period or adding prizes is generally acceptable. Reducing prize values, changing eligibility, or altering the winner selection method is not. Any amendment must be documented and communicated to existing participants.

Ready to go deeper? Read the full How to Run a Sweepstakes: Complete Guide for Brands, or start with specific topics like writing your official rules or promoting your sweepstakes.