A sweepstakes is a chance promotion where the winners are selected randomly, such as random drawings, giveaways, and instant win games.
There must be no purchase necessary to enter a sweepstakes. Entries with a purchase are permitted, but there must also be a free alternative method of entry for everyone, which provides for equal limitations, equal quantity, equal time and equal prizes. Free entry methods include online and mail-in. But watch out for any hidden costs. For example, text messaging is not a “free” method of entry, because of the possible message and data rates that may apply.
For promotions with prizes over $5000 there are registration and bonding requirements in New York and Florida. (more…)