Alabama Contest and Sweepstakes Laws

Yes, you can run a giveaway in Alabama when entering costs nothing. The constraint is Section 65 of the Alabama Constitution, which says the Legislature has no power to authorise lotteries or gift enterprises. Bills to change Section 65 have been introduced in recent sessions, so check the current text before you rely on it.

Alabama's criminal code also defines gambling. Under Ala. Code § 13A-12-20, a person gambles when they stake or risk something of value on the outcome of a contest of chance, or on a future event outside their control, expecting to receive something of value. A giveaway where entrants stake nothing doesn't fit that definition.

To stay on the right side of it:

1. Make sure at least one way to enter is free.
2. Don't tie entries to a purchase unless a free alternative is offered alongside.
3. Say exactly how winners are picked in your Terms & Conditions.

Gleam generates your Terms from your campaign details. Open the Setup tab, find Terms & Conditions and use Modify to check the winner-selection method and the sponsor details. If an Action requires payment, turn on the free entry setting so a free alternative appears in your Terms.

This isn't legal advice. If you're running nonprofit raffles in Alabama, speak to an Alabama attorney, because the rules are separate and narrow.

Sources:

• Alabama legislative instruments citing Section 65 and § 13A-12-20 (Alabama Legislature)
• Alabama Legislature: HB151 (2024) on Section 65