Alabama Contest and Sweepstakes Laws

In Alabama, contests and sweepstakes are generally permitted when structured to comply with strict anti-gambling laws. Gambling is defined as risking something of value on an outcome involving chance. To avoid being considered illegal, a promotion must eliminate either chance or consideration. Sweepstakes typically remove consideration by offering Free Alternate Entry Methods (AMOE), while contests emphasize skill to differentiate from gambling.

Alabama’s constitution prohibits lotteries, and this prohibition extends to any prize promotions that involve a required payment for entry and chance-based prize distribution. Businesses conducting promotions must ensure that entry is free and winners are selected based on skill or a chance element without requiring a purchase. Nonprofit raffles are restricted unless authorized by local jurisdictions under specific constitutional amendments. You can review the Alabama Constitution Section 65 for lottery prohibitions and restrictions.

Sponsors must clearly outline the rules, eligibility criteria, free entry methods, and odds of winning to remain compliant with consumer protection laws. Providing transparent terms and avoiding mandatory purchases are key. Organizations operating in Alabama should carefully structure their promotions to comply with applicable regulations, and guidance can be found through:

Sources:

• Alabama Code Title 13A, Chapter 12 – Offenses Against Public Health and Morals
• Alabama Constitution – Lottery Prohibition (Section 65)
• Alabama Attorney General – Consumer Protection Section