Contest & Sweepstakes Laws by State in the U.S.
Running a sweepstakes or contest in the U.S. requires more than creativity — it demands compliance. In this guide, we break down sweepstakes laws by state, key federal requirements, and best practices for legally offering prizes. Avoid common mistakes, build trust with your audience, and launch giveaways that grow your brand the right way.
Between federal regulations, state-specific rules, and platform guidelines, it’s easy to miss a critical detail — and that could put your business at risk. This guide simplifies the process for you. We'll break down essential U.S. sweepstakes laws, explain how state laws can impact your campaign, and show you how to structure your contest or sweepstakes so you can focus on growth, not legal worries.
Whether you're a startup launching your first promotion or a brand scaling up your marketing efforts, legal compliance isn't optional — it's a crucial part of protecting your reputation and building trust with your customer base. Failing to follow sweepstakes and contest rules could result in fines, cancelled promotions, or even lawsuits. Worse, it can permanently damage the brand you’re working so hard to grow. Running a giveaway legally isn't just about avoiding trouble — it's about building a promotion you can proudly showcase, backed by transparency and professionalism.
- Sweepstakes: Winners are chosen randomly. No purchase or payment can be required to enter.
- Contests: Winners are selected based on skill or merit. Entry requirements can vary but must be clearly disclosed. Misclassifying your campaign could lead to serious legal issues, so understanding the difference matters.
If you're running a sweepstakes in the United States, make sure you:
- Provide an alternate free method of entry if purchases are involved.
- Draft official rules that detail eligibility requirements, odds of winning, prize descriptions, and chances of winning.
- Disclose how you'll select and announce the winners.
- Clearly explain the order to enter and avoid misleading users about their odds.
- If offering prizes over $600, issue 1099 tax forms to winners.
- Include publicity releases if you plan to use winner names or likenesses for promotion.
- Ensure all promotions comply with platform-specific rules (especially on social media).
- Disclose any sponsored content with #ad to meet FTC standards.
- Respect state-specific rules — some states require bonding or registration before offering prizes.
Every element — from your official rules to how you collect participant data — must align with local, state, and federal laws.
When you explore sweepstakes laws by state, you’ll notice that a few states — like Rhode Island — impose extra requirements if you're offering high-value prizes through a retail location. That's why it's crucial to tailor your campaign depending on where your participants are located — not just where your company is based.
Launching a giveaway shouldn’t be a legal minefield.
Gleam gives you the tools you need to run sweepstakes and contests legally, with built-in templates for official rules, privacy policies, and structured entry methods.
Focus on creating promotions that drive real engagement, grow your audience, and build long-term brand equity — without exposing your business to unnecessary risk.
Anytime you run a contest or sweepstakes in any U.S. state you need to follow these laws.
Everything you need to know about contest & sweepstakes laws and regulations and how you can run your own legal giveaway.
There are some states which also have certain exceptions, or slightly different laws.
You can easily skip ahead and find the contest and sweepstakes laws for your state by clicking on its name below:
Contests and sweepstakes are allowed in Alabama if they avoid being classified as illegal gambling by eliminating chance or consideration. Clear rules and free entry methods are required.
Contests and sweepstakes are legal in Alaska when properly structured to avoid being classified as illegal gambling. Transparency in rules, eligibility, and free entry methods is essential.
Contests and sweepstakes are allowed in Arizona if they comply with laws preventing illegal gambling by eliminating either chance or consideration. Certain registrations are required for amusement gambling contests.
Contests and sweepstakes are allowed in Arkansas if they eliminate either chance or consideration to avoid being classified as illegal lotteries. Clear rules and free entry options are essential.
Contests and sweepstakes are allowed in California if they avoid being classified as illegal lotteries by eliminating either chance or consideration and adhering to strict consumer protection standards. Long Answer:
Contests and sweepstakes are legal in Colorado if they avoid being classified as illegal lotteries by removing either chance or consideration. Transparency in entry methods and disclosures is required.
Contests and sweepstakes are legal in Connecticut if structured carefully to eliminate illegal lottery elements. Strict consumer protection laws apply, and certain promotions may require bonding and registration.
Contests and sweepstakes are legal in Delaware if they eliminate either chance or consideration. Delaware has specific laws regarding charitable gaming and strong consumer protection standards.
Contests and sweepstakes are legal in Florida when structured carefully. Florida has strict regulations, including mandatory registration and bonding for high-value promotions.
Contests and sweepstakes are legal in Georgia if they avoid being classified as illegal lotteries by eliminating either chance or consideration. Full disclosure and transparency are required.
Contests and sweepstakes are legal in Hawaii if they eliminate either chance or consideration. Promotions must also comply with strict consumer protection and gambling statutes.
Contests and sweepstakes are legal in Idaho if they avoid being classified as illegal gambling by eliminating either chance or consideration. Transparency and fair entry terms are required.
Contests and sweepstakes are legal in Illinois if they eliminate either chance or consideration to avoid classification as an illegal lottery. Transparency and compliance with consumer protection laws are essential.
Contests and sweepstakes are legal in Indiana if they are structured to avoid illegal lottery definitions by eliminating either chance or consideration. Clear disclosure and free entry options are required.
Contests and sweepstakes are legal in Iowa if they avoid being classified as illegal lotteries by eliminating either chance or consideration. Clear rules and transparent entry options are required.
Contests and sweepstakes are legal in Kansas if structured to eliminate either chance or consideration, thus avoiding classification as illegal lotteries. Full disclosure and free entry options are required.
Contests and sweepstakes are legal in Kentucky if structured to eliminate either chance or consideration. Transparency and compliance with consumer protection laws are essential.
Contests and sweepstakes are legal in Louisiana if they are carefully structured to eliminate either chance or consideration, with full transparency required.
Contests and sweepstakes are legal in Maine if they avoid being classified as illegal lotteries by eliminating either chance or consideration. Clear disclosures and compliance with consumer protection laws are required.
Contests and sweepstakes are legal in Maryland if structured to eliminate either chance or consideration. Clear disclosures and compliance with consumer protection laws are mandatory.
Contests and sweepstakes are legal in Massachusetts if structured to eliminate either chance or consideration, with strict compliance to consumer protection standards.
Contests and sweepstakes are legal in Michigan if they are carefully structured to eliminate either chance or consideration. Transparency and compliance with state consumer laws are required
Contests and sweepstakes are legal in Minnesota if they are structured to eliminate either chance or consideration. Full disclosure of rules and compliance with state consumer laws are required.
Contests and sweepstakes are legal in Mississippi if structured to eliminate either chance or consideration. Transparency and compliance with gambling and consumer protection laws are critical.
Contests and sweepstakes are legal in Missouri if they are structured to eliminate either chance or consideration. Clear rules and transparency in promotions are essential.
Contests and sweepstakes are legal in Montana if they are structured to eliminate either chance or consideration. Full disclosure and compliance with gambling and consumer protection laws are required.
Contests and sweepstakes are legal in Nebraska if they are structured to eliminate either chance or consideration. Full transparency and compliance with state gambling and consumer laws are essential.
Contests and sweepstakes are legal in Nevada if they eliminate either chance or consideration. Promotions must comply with strict gambling regulations and consumer protection laws.
Contests and sweepstakes are legal in New Hampshire if structured to eliminate either chance or consideration. Transparency and compliance with gambling and consumer protection laws are required.
Contests and sweepstakes are legal in New Jersey if structured to eliminate either chance or consideration. Sponsors must comply with strict consumer protection and disclosure requirements.
Contests and sweepstakes are legal in New Mexico if they are structured to eliminate either chance or consideration. Transparency and compliance with state gambling and consumer protection laws are required.
Contests and sweepstakes are legal in New York if they eliminate either chance or consideration. Sweepstakes with high-value prizes must comply with strict registration and bonding requirements.
Contests and sweepstakes are legal in North Carolina if they eliminate either chance or consideration. Promotions must comply with strict consumer protection laws and avoid deceptive practices.
Contests and sweepstakes are legal in North Dakota if they eliminate either chance or consideration. Promotions must comply with gambling statutes and consumer protection laws.
Contests and sweepstakes are legal in Ohio if structured to eliminate either chance or consideration. Transparency and compliance with gambling and consumer protection laws are critical.
Contests and sweepstakes are legal in Oklahoma if they eliminate either chance or consideration. Promotions must comply with gambling laws and consumer protection standards.
Contests and sweepstakes are legal in Oregon if structured to eliminate either chance or consideration. Transparency and compliance with gambling and consumer protection laws are necessary.
Contests and sweepstakes are legal in Pennsylvania if they are structured to eliminate either chance or consideration. Transparency and strict consumer protection compliance are required.
Contests and sweepstakes are legal in Rhode Island if structured to eliminate either chance or consideration. Certain promotions require registration with state authorities.
Contests and sweepstakes are legal in South Carolina if they eliminate either chance or consideration. Full compliance with state gambling and consumer protection laws is necessary.
Contests and sweepstakes are legal in South Dakota if they are structured to eliminate either chance or consideration. Promotions must comply with gambling and consumer protection regulations.
Contests and sweepstakes are legal in Tennessee if structured to eliminate either chance or consideration. Full compliance with gambling and consumer protection laws is essential. Long Answer:
Contests and sweepstakes are legal in Texas if they eliminate either chance or consideration. Promotions must comply with gambling prohibitions and consumer protection standards.
Contests and sweepstakes are legal in Utah if they are structured to eliminate either chance or consideration. Promotions must comply with strict gambling prohibitions and consumer protection standards.
Contests and sweepstakes are legal in Vermont if structured to eliminate either chance or consideration. Promotions must comply with consumer protection laws and full disclosure requirements.
Contests and sweepstakes are legal in Virginia if structured to eliminate either chance or consideration. Full disclosure and compliance with gambling and consumer protection laws are required.
Contests and sweepstakes are legal in Washington if structured to eliminate either chance or consideration. Full compliance with gambling laws and consumer protection standards is required.
Contests and sweepstakes are legal in West Virginia if structured to eliminate either chance or consideration. Full compliance with gambling and consumer protection laws is required. Long Answer:
- Everything You Need To Know About Online Sweepstakes
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- How to Promote Your Giveaway
- Driving Sales From Giveaway Entrants
- Using Contests to Collect User-Generated Content
- How to Grow Your Business With Gleam
- Check out our powerful contest templates
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Ahron Burstin
Ahron is a Growth Marketer at Gleam. Shoot him a Tweet if you got something out of this post ☺