Sweepstakes Laws: U.S. Federal & State Requirements

Start with the promotion you actually intend to run: a free random drawing, a judged photo/video contest, or a competition using public votes. The selection method, entry conditions, eligible states and advertising channels determine which rules need attention.

This guide covers ordinary commercial promotions with free entry. Paid entries or votes, purchase-linked offers, charitable raffles, gambling devices and regulated prizes need separate analysis. It is an informational overview, not legal advice for a particular campaign.

Drawings, judging and public voting

A promotion that combines a prize, chance and consideration is a lottery (FCC v. American Broadcasting Co., 1954), and federal law bars mailing lottery matter (18 U.S.C. §1302). A sweepstakes keeps the prize and chance but removes consideration by offering a genuinely free entry route. Follows, likes and comments are generally not treated as consideration. See sweepstakes vs. contest vs. lottery for the distinctions.

A judged submission contest evaluates entries using stated criteria. Public voting is another selection mechanism; it should not automatically be described as a legally established pure-skill contest.

Do not assume that removing a random drawing makes paid participation lawful everywhere. State definitions differ, and chance can matter even when skill is also present. Paid-entry skill contests are lawful in most states, but some regulate them. Arizona, for example, requires registration for purchase-linked intellectual contests (A.R.S. §13-3311); that provision does not apply merely because a free photo or video contest uses judging or voting.

Sources: FTC advertising guidance; 18 U.S.C. §1302; Arizona definitions; A.R.S. §13-3311; New Jersey's chance and gambling definitions.

Make free entry real

The advertisement and entry flow should make clear that a purchase is not needed to enter a sweepstakes and does not improve the entrant's chances. Do not place a shopping step where someone would reasonably think it is required to finish entering.

FTC action against Publishers Clearing House illustrates the problem with misleading purchase prompts and sweepstakes claims. A buried disclosure does not cure a misleading overall experience. That enforcement order applies to the company involved; it is not a universal interface specification.

If any entry route is tied to a purchase or payment, a free alternative method of entry (AMOE) is required. Free entries should have the same odds per entry and go into the same drawing for the same prizes, and free entrants must never be capped below buyers. "Buy more, get more entries" structures carry more risk. An AMOE does not cure a promotion that effectively sells entries or uses a pretext product: California's Supreme Court treated that as illegal gambling in People ex rel. Green v. Grewal (2015). Florida bars requiring "an entry fee, payment, or proof of purchase" for game promotions. The no purchase necessary guide covers these rules in more detail.

Source: FTC Publishers Clearing House enforcement announcement.

Federal rules and advertising channels

Section 5 of the FTC Act (15 U.S.C. §45) prohibits deceptive advertising. Use truthful prize, sponsorship and winner claims. Distinguish an invitation to enter from an actual winner notification, and do not introduce a misleading purchase or prize-release fee. Where an FTC rule or order applies, civil penalties can exceed $50,000 per violation, adjusted annually for inflation.

If entrants post about your brand to enter, the FTC Endorsement Guides (16 CFR Part 255) call for a clear disclosure such as #contest or #sweepstakes; "#sweeps" alone is probably unclear.

Telephone and mailed promotions have additional requirements. The Telemarketing Sales Rule requires specific prize promotion disclosures, and mailed sweepstakes must carry the disclosures in 39 U.S.C. §3001(k). Apply those rules when you use those channels rather than turning them into a checklist for every web form. The FTC sweepstakes regulations guide covers each one.

Sources: FTC advertising guidance; 16 CFR Part 255; 39 U.S.C. §3001; U.S. Postal Inspection Service sweepstakes guide.

State registration and prize security

New York and Florida require registration for chance promotions open to their residents when total prizes are more than $5,000, including promotions run entirely online. New York requires filing at least 30 days before the start and Florida at least 7 days before, each with a $100 fee and a bond or trust for the prize value (Florida may waive the bond or trust). Rhode Island's filing applies only to chance promotions run by Rhode Island retail establishments with total prizes over $500; online and national promotions do not file there.

Post-promotion reports are due too: New York requires a list of winners of prizes over $25 within 90 days, and Florida requires a winner report within 60 days. Use the registration and bonding guide for sources and details. Other states have meaningful disclosure and conduct rules even when these particular prize-pool filings do not apply. The state-law directory links every state and DC.

Find your state's sweepstakes laws

Review each state where residents can enter your promotion. These guides cover free drawings and judged or voted submission contests, with links to official sources. For a visual overview, use the interactive state-law map.

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• District of Columbia
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Write rules that match the campaign

Use the following as practical drafting prompts, then add the requirements applicable to your states and channels:

• Sponsor identity, eligible entrants and the opening and closing dates.
• Free-entry instructions, entry limits and a precise description of each prize.
• How winners are selected: drawing, judging criteria, voting stages and tie handling.
• Material prize-use conditions, verification, notification and fulfillment.
• How submitted content and contact details will be used.
• Publicity terms. Tennessee bars making a prize conditional on the winner's consent to publicity in covered sales promotions.

State-specific provisions may go further. Oregon, for example, sets solicitation disclosures for contests and sweepstakes; Connecticut has particular rules for covered sweepstakes advertisements. Use the source-linked state pages instead of treating this list as exhaustive.

The official rules template is a starting point. Revup also generates an official-rules template from your promotion settings; review and complete it for your states and mechanics.

Define eligibility rather than relying on a disclaimer

Decide which states and age groups may participate before launch, then make the form, advertising and rules agree. A “void where prohibited” line does not itself exclude a named state or complete its filing obligations.

If the promotion is limited geographically, state the limits clearly and administer them consistently. Keep a record of eligibility checks and the basis for rejecting an entry. See what "void where prohibited" means for more.

Set age limits with the age of majority in mind: it is 19 in Alabama and Nebraska and 21 in Mississippi. If Canadians can enter, plan for a skill-testing question for winners and French-language materials for Quebec entrants (Quebec repealed its contest registration and duty rules in October 2023).

Plan prize reporting and recipient information

For 2026 payments, sponsors report prizes on Form 1099-MISC (Box 3, at fair market value) when a winner receives $2,000 or more in a calendar year. The threshold was $600 before 2026 and is indexed for inflation from 2027. It is not a tax-free allowance for winners. W-2G gambling withholding requires a wager, so it does not apply to no-purchase sweepstakes.

Collect recipient information before awarding reportable prizes. Form W-9 generally documents U.S. recipients, while foreign recipients may need the appropriate W-8. Backup withholding at 24% applies only when a winner does not provide a valid taxpayer identification number. Revup can collect W-9 and affidavit packages from winners, but it does not file tax forms. The sweepstakes tax reporting guide covers deadlines and edge cases.

Sources: IRS Publication 1099; IRS W-9 requester instructions.

Regulated prizes need a separate check

An alcohol shipping license is not permission for any sponsor to award alcohol. The sponsor's role, prize, participant age, retail involvement and fulfillment method can affect the rules. This guide does not provide clearance for regulated products.

For example, California bans alcohol as a sweepstakes prize (Bus. & Prof. Code §25600.2), and Virginia ABC's manufacturer promotion guidance restricts alcohol prizes in covered promotions. Apply the relevant regulator's rules to the actual sponsor and prize rather than using a general state shipping summary. See alcohol prize sweepstakes rules by state.

Check the platforms you use

Before publishing a social promotion, review the current promotion policies of each platform involved. Make the relationship between the sponsor and the platform clear, and ensure the entry instructions match what the campaign actually accepts.

A few examples: Facebook bars requiring or rewarding shares, reposts or tags, and expects entrants to release Meta. Instagram requires a release of Instagram but allows accurate tag-a-friend comments. LinkedIn does not allow giveaways or contests held on LinkedIn or sweepstakes ads, though it allows ads for skill-based contests. YouTube requires free entry and does not allow contests that manipulate views, likes or other metrics. The social media contest rules guide covers each platform.

For public voting, describe the permitted voting method and how invalid votes or ties are handled. These are practical administration recommendations; platform policies do not replace applicable law.

From planning to prize delivery

1. Choose the entry and selection methods, prize and eligible audience.
2. Review the relevant state pages and official sources; identify filings early.
3. Finalize consistent rules, advertising and form settings before launch.
4. Keep entry and selection records, verify winners and deliver prizes.
5. Complete required winner reports, tax reporting and record retention.

Mistakes to avoid

Common drafting problems include using “$5,000 or more” where a statute says more than $5,000, assuming Florida has a prize-security cap, applying Rhode Island's retail-establishment filing to online or national promotions, and treating every judged contest as outside all state rules.

The state pages explain those distinctions with sources. A rules template is a starting point, not evidence that the campaign's actual mechanics have been reviewed.

Start with the states and the actual format

Use the 50-state and DC directory to build a campaign-specific checklist. Revup can collect entries, generate an official-rules template from your settings and collect winner documents. The software does not file registrations or taxes; sponsors remain responsible for their rules, filings and prize obligations. If you'd rather Revup handle the rules, registration and bonding, see managed sweepstakes administration.