North Carolina Contest and Sweepstakes Laws

In North Carolina, contests and sweepstakes are allowed when structured to avoid being classified as illegal lotteries. A lottery in North Carolina is defined by the presence of prize, chance, and consideration. To comply with the law, sweepstakes must eliminate consideration by providing a Free Alternative Method of Entry (AMOE), while contests eliminate chance by emphasizing skill.

North Carolina's consumer protection laws require that sweepstakes and contests clearly disclose eligibility requirements, methods of entry, odds of winning, and full prize descriptions. No purchase or payment may be required for entry or winning. Promotions must avoid misleading representations, particularly suggesting that someone has won a prize if they have not entered or legitimately won.

Certain types of sweepstakes involving electronic machines, especially related to gambling, are strictly prohibited in North Carolina. Businesses running lawful private promotions must ensure transparency, fair play, and compliance with both the state's gambling statutes and consumer protection standards.

Sources:

• North Carolina General Statutes Chapter 14, Article 37 – Lotteries
• North Carolina Attorney General – Consumer Protection Division
• North Carolina Unfair and Deceptive Trade Practices Act