Sweepstakes & Contests
Prize, chance, consideration. Pick two.
A promotion becomes an illegal lottery the moment it combines a prize, chance, and consideration, and that distinction determines whether your giveaway can run in all 50 states or exposes you to enforcement. Hank handles sweepstakes and contest law for sponsors running national promotions, a narrow practice only a handful of lawyers concentrate in. Many sponsors come to him after the promotion is already built and the compliance questions arrive at the end, so he structures the giveaway to satisfy the law from the start rather than retrofitting it once the mechanics are locked.
Every compliant promotion removes one of the three elements. A sweepstakes removes consideration by offering a free method of entry that's as easy to find and use as the paid one (the alternate method of entry), so winning never depends on a purchase. A contest removes chance by selecting winners on defined, disclosed criteria that independent judges apply, so the outcome turns on skill. Hank drafts official rules to match your promotion's actual mechanics, eligibility, prize description, odds, entry period, and no purchase necessary terms, because template rules downloaded from the Internet won't reflect your promotion and won't protect you.
Florida and New York require sponsors to register promotions and post a bond once total prize value exceeds $5,000, and sponsors must file before launch, 30 days ahead in New York and at least seven days ahead in Florida. A national giveaway has to satisfy both deadlines in advance or exclude those states. Rhode Island requires registration as well, though only for promotions run through retail stores. Hank also reviews your promotion against platform rules that govern giveaways on Instagram, TikTok, and other networks, against FTC advertising standards that apply when a free entry is buried or a purchase is implied, and against the tax reporting obligations you owe once a prize exceeds the reporting threshold. Any one of these requirements can derail an otherwise sound promotion if you address it after launch instead of before.
Hank has structured promotions for brands, retailers, agencies, and app and creator campaigns, from a single-state giveaway to a national sweepstakes running in every state at once. Every engagement works toward the same result, a promotion you can launch and run without an attorney general, a platform, or a class action shutting it down.
Services Include
- Sweepstakes and contest structure
- Chance, consideration, and prize analysis
- Official rules drafting
- Alternate method of entry design
- State registration and bonding
- Platform and social media compliance
- Advertising and FTC review
- Prize fulfillment and winner documentation
Sweepstakes & Contests Insights
Social Media Giveaways, Lottery Law, and Platform Promotion Rules
A promotion is an illegal lottery when it combines a prize, chance, and consideration. Every state prohibits privately operated lotteries, and federal law prohibits mailing or transporting lottery materials in interstate commerce. A lawful sweepstakes avoids the lottery classification by removing consideration, and a lawful contest avoids it by removing chance.
Read articleSweepstakes Casinos and the Failure of the Dual-Currency Model
Sweepstakes casinos sell virtual currency packages and award cash-redeemable entries as a promotional bonus, structured to satisfy sweepstakes law by separating the purchase from the prize. As of mid-2026, the model is failing. At least 13 states have banned or effectively shut down sweepstakes casino operations through legislation, attorney general enforcement, or pre-existing gambling laws.
Read articleApp-Based Games, Gamified Promotions, and the Lottery Line
Spin-the-wheel popups, digital scratch-off cards, match-three games, prize wheels in mobile apps, and loot-box-style reward mechanics all make promotional experiences more engaging. They also introduce chance in ways that many sponsors fail to analyze.
Read articleThe Alternate Method of Entry and the Equal Dignity Rule
A sweepstakes that sells entries is legal only when you also offer a free way to enter that works as well as the paid one. Regulators and plaintiffs test that free method first, and the equal dignity rule requires it to match purchase entry in odds, entries, prizes, and prominence.
Read articlePrize Fulfillment, Tax Reporting, and What a Sponsor Owes After the Winner Is Picked
Selecting a winner starts a second compliance sequence of verification documents, tax forms, withholding decisions, delivery duties, and state filings. Sponsors who plan the promotion without planning the aftermath tend to discover these obligations with a deadline already running.
Read articleSkill Contests Versus Sweepstakes and When You Can Charge to Enter
Removing chance instead of consideration lets a sponsor charge an entry fee, but states draw the line between skill and chance differently, and one random drawing anywhere in the winner selection can convert a paid contest into an illegal lottery.
Read articleWhat Makes a Promotion a Sweepstakes, a Contest, or an Illegal Lottery
Every promotional giveaway in the United States fits into one of three legal categories, and the classification determines whether the promotion is lawful. A lottery exists when a promotion combines a prize, an element of chance, and consideration (something of value the participant provides to enter).
Read articleWhat Sweepstakes Official Rules Need to Include
Official rules define the terms of every sweepstakes and contest and serve as the first document a regulator or plaintiff reads when a promotion goes wrong. Template rules downloaded from the Internet routinely omit required provisions and fail to match the promotion's actual mechanics.
Read articleSweepstakes Registration and Bonding Requirements by State
Florida and New York require you to register a sweepstakes and post a surety bond once total prize value exceeds $5,000, and Rhode Island requires registration for retail promotions over $500. Most sponsors learn about these filings after the promotion is live and the deadline has passed.
Read articleRelated Work
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