Tennessee Contest and Sweepstakes Laws
Yes, you can run a giveaway in Tennessee if entering is free. The risk comes from charging for chances. The state's gambling law, Tenn. Code Ann. § 39-17-501, defines gambling as risking anything of value for a profit whose return is to any degree contingent on chance, according to Tennessee Attorney General opinions that quote it.
Raffles are where Tennessee is strictest. The Secretary of State's Division of Charitable Solicitations and Gaming treats an event as a raffle if someone has to pay for a chance to win a prize, and calling the payment a donation doesn't change that. Its FAQ says only approved 501(c)(3) or 501(c)(19) organisations can hold one, and approval needs the General Assembly. A business can't sidestep this by selling tickets.
What that means for your campaign:
- Keep a free way to enter on every prize draw
- Don't make a purchase or donation the only route to an entry
- If you sell a product with an entry attached, add a free alternative
In Gleam, an Action that needs payment has an A Purchase or Donation is Required to Complete This Action setting. Turning it on adds a free entry alternative to your Terms & Conditions. For the wider picture, see our guide to AMOE.
This isn't legal advice. Ask a Tennessee attorney if you're unsure.
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Can I Offer a Contest Based on Skill to Avoid Lottery Laws?
Often, yes. If you judge winners on skill against published criteria and never draw at random, most places don't treat it as a lottery. Check your local law.