Not all sweepstakes are created equal, and neither are the laws behind them. In the United States, sweepstakes rules are shaped by a combination of federal regulations and state-specific requirements that every sponsor and player should understand before jumping in.
From registration thresholds in New York and Florida to outright bans on certain promotions in other states, the legal landscape is more detailed than most people expect. Here is everything you need to know about sweepstakes laws by state, updated for 2026.
Sweepstakes vs. Contests vs. Lotteries: Understanding the Legal Differences
A sweepstakes is a promotion where winners are chosen entirely by random chance. No purchase or payment is required to enter. A contest, by contrast, is decided by skill or merit, such as submitting a photo or essay, and winners are judged against specific criteria. A lottery involves all three elements: prize, chance, and consideration (payment). Because lotteries are restricted to government entities in the US, private promotions must eliminate consideration to stay legal.
The line that separates a legal sweepstakes from an illegal lottery is the “no purchase necessary” rule. Remove consideration, and you have sweepstakes. Remove chance and replace it with a skill-based judging process, and you have a contest. Keep all three, and you have an illegal lottery. That distinction drives everything in US sweepstakes law, and it is the same principle that governs how contests and sweepstakes are treated differently under both federal and state regulations.
Federal Sweepstakes Laws and 2026 Updates
Before worrying about individual state requirements, every sweepstakes run in the United States must comply with these three federal frameworks regardless of where participants are located.
FTC Act and the 2026 Deceptive Practices Rule
The Federal Trade Commission Act prohibits unfair or deceptive acts in commerce, and sweepstakes promotions fall squarely under its scope. The FTC requires that all material terms, including odds, prize value, eligibility, and end date, be clearly disclosed to participants. Promotions must also include a no purchase necessary (NPN) entry option, known as an Alternative Method of Entry (AMOE), so that entering does not require spending money.
In 2025, the FTC finalized a rule specifically targeting deceptive practices in sweepstakes, with enforcement beginning in early 2026, placing additional scrutiny on digital and influencer-driven promotions. This increased federal scrutiny applies equally to promotional platforms operating under sweepstakes law, which is why the best sweepstakes casinos are built around full transparency in their entry mechanics and prize disclosures.
DMPEA
The Deceptive Mail Prevention and Enforcement Act governs sweepstakes that are promoted through direct mail, enforced by the US Postal Service. It prohibits misleading language in mailed promotions, such as implying the recipient has already won when they have not.
Required disclosures must be clearly formatted and must state that no purchase is necessary, and that a purchase will not improve the odds of winning. While direct mail sweepstakes are less common today, brands using that channel in 2026 must still comply in full.
IRS Rules and the 2026 Prize Reporting Threshold
Prize winnings from sweepstakes are taxable income under US federal law, and sponsors have reporting obligations when prizes exceed certain thresholds. As of the 2026 tax year (reported in 2027), the threshold for issuing a Form 1099-MISC has been raised from $600 to $2,000 under the One Big Beautiful Bill Act.
This change affects reporting requirements only and does not reduce a winner’s tax liability, as all prizes remain taxable regardless of value. Sponsors awarding large prizes, such as cars or vacations, should involve a tax professional when structuring the promotion.
Sweepstakes Laws by State
Click any state on the map to view its specific promotion law requirements.
Select a state on the map to view its sweepstakes law requirements.
Alabama
Follows general federal guidelines. Sponsors cannot use misleading language in direct mail promotions that implies a recipient has already won as a tactic to sell a product or service.
Federal Guidelines Apply
Alaska
A state permit is required before running a sweepstakes or contest. Additionally, all sweepstakes must include a free method of entry.
Permit Required
Arizona
Standard sweepstakes follow general federal guidelines. Skill-based contests must be registered with the Arizona Attorney General’s office before the promotion launches.
Registration for Skill Contests
Arkansas
Follows general federal guidelines. Sponsors cannot imply a recipient has won or is likely to win as a tactic to sell a product or make contact with prospects.
Federal Guidelines Apply
California
Follows general federal guidelines. Alcohol cannot be the sole prize, though it can be part of a prize package. Entry cannot be conditioned on visiting a licensed alcohol premises.
Alcohol Prize Restrictions
Colorado
Follows general federal guidelines. Direct mail promotions cannot require a purchase or fee to participate, under the Colorado Consumer Protection Act. Consideration is also prohibited for skill-based contests, making Colorado stricter than the federal baseline on this point.
Stricter Than Federal Baseline
Connecticut
Follows general federal guidelines for sweepstakes. Skill-based contests cannot charge consideration if the prize is valued at $200 or more, and such contests cannot be advertised in the state.
Skill Contest Restrictions
Delaware
Follows general federal guidelines. Sponsors must ensure all prize-related communications are accurate and not misleading, in line with the state’s consumer protection standards.
Federal Guidelines Apply
Florida
Registration and bonding required. Sweepstakes with a total prize pool exceeding $5,000 must be registered with the Florida Department of Agriculture and Consumer Services and bonded at least 7 days before the promotion launches. A winners list must be filed with the state within 60 days of the promotion ending. If the prize includes travel, Seller of Travel registration is also required.
Registration & Bond Required
Georgia
Follows general federal guidelines. Prizes cannot be awarded based on playing a game on an electronic or mechanical device at a place of business.
Federal Guidelines Apply
Hawaii
Follows general federal guidelines. If the prize is real property, a bond of $10,000 or more must be filed. If the prize includes travel, Seller of Travel registration is required.
Bond Required for Real Property
Idaho
Follows general federal guidelines. Telecommunications companies cannot combine a sweepstakes with any telecom service offer in the state. If a prize is offered as an incentive to attend a sales presentation, required consumer disclosures must be made.
Federal Guidelines Apply
Illinois
Follows general federal guidelines. No payment can be required to receive, use, compete for, or obtain information about a prize.
Federal Guidelines Apply
Indiana
Follows general federal guidelines. Any written or digital notice informing a recipient they may be eligible for a prize must clearly disclose all conditions and obligations attached to receiving that prize.
Federal Guidelines Apply
Iowa
Follows general federal guidelines. Sponsors cannot require participants to pay money or donate as a condition of receiving, competing for, or obtaining information about a prize.
Federal Guidelines Apply
Kansas
Follows general federal guidelines. Electronic machines that sell merchandise while offering a game of chance (sweepstakes terminals) are prohibited.
Sweepstakes Terminals Banned
Kentucky
Follows general federal guidelines. Sweepstakes terminal machines are prohibited.
Sweepstakes Terminals Banned
Louisiana
Follows general federal guidelines. Winners must be notified by one of the following methods: a posted printed list, scratch-off ticket, pull-tab card, or direct written or phone contact. Prizes must be delivered within 10 days.
10-Day Prize Delivery Rule
Maine
Follows general federal guidelines. In-package sweepstakes are permitted as long as a free alternative method of entry is available, and no purchase of the product is required to participate.
Federal Guidelines Apply
Maryland
Follows general federal guidelines. A purchase cannot be required to enter any promotion, including skill-based contests.
Federal Guidelines Apply
Massachusetts
Follows general federal guidelines. Tobacco-related sweepstakes and contests are entirely prohibited in the state.
Tobacco Promotions Banned
Michigan
Follows general federal guidelines. Requiring entrants to visit a physical store location is classified as consideration and is prohibited for sweepstakes, even if no purchase is required at that visit. Tobacco-related promotions are also prohibited.
Store Visit = Consideration
Minnesota
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Mississippi
Follows general federal guidelines for standard promotional sweepstakes. Retail sweepstakes cafes are prohibited. As of 2026, online sweepstakes platforms are also facing active legislative efforts to restrict or ban them in the state.
Legislative Activity in 2026
Missouri
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Montana
Follows general federal guidelines. If a prize is offered as part of any promotional campaign, sponsors must clearly disclose all conditions or obligations the recipient must meet to receive the prize.
Federal Guidelines Apply
Nebraska
Follows general federal guidelines. No purchase or consideration can be required to enter any promotion, including skill-based contests. This applies across all promotion types and is stricter than the federal baseline.
Stricter Than Federal Baseline
Nevada
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
New Hampshire
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
New Jersey
Follows general federal guidelines. Prizes must be delivered free of charge within 15 days of being announced.
15-Day Prize Delivery Rule
New Mexico
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
New York
Registration and bonding required. Sweepstakes with a total prize pool exceeding $5,000 must be registered with the New York Department of State and bonded at least 30 days before the promotion launches. A certified winners list must be submitted to the state within 90 days of the promotion ending.
Registration & Bond Required
North Carolina
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
North Dakota
Follows general federal guidelines for sweepstakes. For skill-based contests specifically, a purchase cannot be required as a condition of entry.
Skill Contest Restriction
Ohio
Follows general federal guidelines. Requiring a store visit, even without a purchase, may be treated as consideration and could lead to a chance-based promotion being classified as an illegal lottery. Legal review is recommended for any retail-linked promotions in Ohio.
Legal Review Recommended
Oklahoma
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Oregon
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Pennsylvania
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Rhode Island
Registration required for retail-linked promotions. Any sweepstakes connected to a physical retail location in the state with prizes valued over $500 must be registered with the state before the promotion launches. No bond is required.
Registration Required (Retail)
South Carolina
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
South Dakota
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Tennessee
Follows general federal guidelines. Tennessee has the strictest statutory restrictions regarding publicity releases. Sponsors cannot make receipt of a prize contingent on the winner signing away publicity rights. Expressed written or oral consent must be obtained before using a winner’s name in any promotional materials.
Strictest Publicity Rules
Texas
Follows general federal guidelines. For sweepstakes with prizes valued at $50,000 or more, consumers cannot be automatically entered through a purchase. Participants must take a separate, voluntary action to enter.
High-Value Prize Rule
Utah
Follows general federal guidelines. No additional state-specific requirements.
Federal Guidelines Apply
Vermont
Follows general federal guidelines. Following a 2013 amendment to state law, sponsors may charge an entry fee or require a purchase for skill-based contests. Standard chance-based sweepstakes remain free to enter.
Skill Contests May Charge Entry
Virginia
Follows general federal guidelines. Tobacco-related sweepstakes are prohibited. If a sponsor tells a participant they have won, the prize must be awarded within 10 days with no additional obligation or expense placed on the winner.
Tobacco Promotions Banned
Washington
Follows general federal guidelines. Sponsors cannot use printed or digital materials to imply a recipient has won a prize unless that prize will be awarded without any further obligation.
Federal Guidelines Apply
West Virginia
Follows general federal guidelines. Deceptive practices such as simulated checks or excessive shipping and handling charges tied to prize claims are prohibited.
Federal Guidelines Apply
Wisconsin
Follows general federal guidelines. In-pack sweepstakes are permitted as long as a free method of entry is available, and abbreviated rules, including the promotion end date, appear on packaging.
Federal Guidelines Apply
Wyoming
Follows general federal guidelines. If an advertised prize becomes unavailable, sponsors must provide a substitute of equal or greater value or the cash equivalent at no cost to the winner.
Federal Guidelines Apply
Where Registration and Bonding Rules Apply ?
Most US states have no formal registration process for sweepstakes. However, three states impose specific registration and/or bonding requirements that catch brands by surprise. If your promotion is open to residents of any of these states and your prize pool crosses the applicable threshold, you must register before you launch, not after.
New York and Florida
New York and Florida have the most comprehensive sweepstakes registration schemes in the country, and their requirements are nearly identical. If your sweepstakes is open to residents of either state and the total prize value exceeds $5,000, you must register the promotion with the relevant state authority (the New York Department of State and the Florida Department of Agriculture and Consumer Services, respectively) and post a surety bond equal to the total prize pool value.
Registration must be completed before the sweepstakes launches. After the promotion ends, sponsors are required to submit a certified winners list to the state. Failure to comply can result in fines, enforcement actions, and the promotion being invalidated.
Rhode Island
Rhode Island’s requirements are narrower but still worth noting. Registration is required for certain sweepstakes conducted by retail establishments when the total prize value exceeds $500. Unlike New York and Florida, Rhode Island does not generally require a bond, but registration must still be completed before the promotion goes live. This rule primarily applies to in-store retail promotions, so many online-only sweepstakes will not trigger it. When in doubt, consult legal counsel before opening your promotion to Rhode Island residents.
How to Draft Official Rules and Award Prizes
Running a legally compliant sweepstakes requires both a properly drafted set of official rules and a clear process for awarding prizes and notifying winners.
Official Rules Requirements
All US sweepstakes must include official rules that are clearly accessible to participants. Understanding sweepstake rules is essential before running any promotion. At a minimum, official rules must disclose:
The sponsor’s name and contact information
Eligibility requirements (age, state restrictions, etc.)
The entry method, including the free AMOE
The prize description and approximate retail value
The odds of winning and how the odds will be determined
The start and end dates of the promotion
How and when winners will be selected and notified
Any tax obligations placed on the winner
Rules should be linked from every entry page, not buried in a footer. For promotions running on social media platforms, official rules must also comply with each platform’s own promotion policies, which layer on top of federal and state law.
Prize Disclosure and Winner Notification
Sponsors must award prizes exactly as described in the official rules. Substitutions are only permitted if the original prize becomes unavailable, and a substitute of equal or greater value is offered, and this should be stated in the rules upfront. Winners must be notified within the timeframe specified in the rules, typically by email or phone. Most promotions require winners to respond within a set window (often 5 to 10 business days) or forfeit the prize. A verified alternate winner must then be selected from remaining eligible entries.
US sweepstakes laws prohibit promotions that combine prize, chance, and paid entry, as that creates an illegal lottery. Legal sweepstakes must be free to enter, include official rules, and award prizes as advertised.
Depends on the state. For example, New York and Florida require registration and bonding for sweepstakes with prizes over $5,000. Rhode Island also requires registration for some retail promotions above $500.
The “No Purchase Necessary” rule ensures participants can enter for free through an Alternative Method of Entry (AMOE). Without a free entry option, sweepstakes may be treated as an illegal lottery.
Yes. Sweepstakes prizes count as taxable income under federal law. Sponsors must issue a Form 1099-MISC for prizes above $2,000 starting in the 2026 tax year, and winners must report prize income on their tax returns.
A sweepstakes is typically a short-term promotional giveaway. A sweepstakes casino is an online platform using Gold Coins and Sweeps Coins to offer casino-style games under sweepstakes law. Availability varies by state; players should verify legality in their state before participating.
Yes. Platforms like Facebook and Instagram allow sweepstakes, but sponsors must follow platform rules, provide official terms, and clearly state the promotion is not endorsed by the platform.
