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

Can You Sell Raffle Tickets Online?

In most places, no, not as a business. Online raffle sales are regulated as gambling and usually limited to licensed or approved charities.