New York Contest and Sweepstakes Laws

In New York, contests and sweepstakes are permitted when structured to avoid being classified as illegal lotteries. A lottery in New York is defined by the presence of prize, chance, and consideration. Sweepstakes eliminate consideration by providing a Free Alternative Method of Entry (AMOE), while contests remove chance by requiring skill-based participation.

New York imposes additional regulations for sweepstakes with high-value prizes. Any sweepstakes offering prizes valued over $5,000 and open to New York residents must be registered and bonded with the New York Department of State at least 30 days prior to launch. Sponsors must fully disclose material terms such as eligibility requirements, methods of entry, prize details, and odds of winning. Promotions must comply with the New York General Business Law and avoid deceptive practices.

Charitable gaming activities like raffles are separately regulated and must comply with specific licensing requirements. Private business promotions must ensure complete transparency, fair practices, and adherence to New York's stringent consumer protection and gambling laws. Sources:

• New York General Business Law Sections 369-e and 369-ee – Sweepstakes Registration and Bonding
• New York Department of State – Sweepstakes Registration Guidance
• New York Attorney General – Consumer Frauds and Protection Bureau