What’s the Difference Between a Raffle and a Giveaway?
A raffle sells tickets for a chance to win, so it's regulated as gambling in most places. A giveaway is free to enter, so it usually isn't.
Both can pick winners at random. What changes the law is whether entrants pay. In the US, charging for a chance on a prize drawn at random is a lottery, and states generally restrict raffles to qualified nonprofits. In Texas, for example, only qualified organisations can run them.
If you're a business, run a giveaway or sweepstakes. If your promotion rewards a purchase, a free alternative method of entry (AMOE) keeps it a sweepstakes in places that require one.
In Gleam, you can reward a purchase with a Custom Action. Switch on A Purchase or Donation is Required to Complete This Action and we add a free entry alternative to your Terms. We show it only to entrants in countries where it's required. See No Purchase Necessary for details.
Instagram's rules don't make a paid raffle legal, and they add requirements of their own:
- Include a complete release of Instagram by each entrant, and say Instagram doesn't sponsor, endorse or run the promotion, as Instagram's promotion guidelines require.
- Don't encourage inaccurate tagging, such as people tagging themselves in photos they aren't in.
- Publish your rules. We generate Terms & Conditions for every Competition.
Gleam doesn't sell raffle tickets for you. If you need a charity raffle, talk to a local attorney first.
This isn't legal advice.
See also: Article #4394