US United States · Guide

Sweepstakes in the United States.

In the US, a promotion that combines a prize and chance cannot require payment to enter. That is why every compliant sweepstakes has a free way in. Here is how it works, where registration applies and what the recent state bans target.

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01 At a glance

The short version.

Core rule: Prize, chance and payment together make an illegal lottery. Sweepstakes remove the payment with a free entry method.
Free entry: Known as an AMOE, an alternative method of entry
New York: Prizes over $5,000: register 30 days ahead, with a bond or trust account
Florida: Prizes over $5,000: file 7 days ahead, bond or trust account, and list winners of over $25 within 60 days
Rhode Island: Retail chance promotions with prizes over $500: file with the Secretary of State
Charity raffles: Licensed state by state, and some states prohibit online raffles

02 The models

Three ways draws run.

The model depends on who runs the draw and whether entrants pay. Businesses run sweepstakes. Nonprofits run raffles under state law.

Promotional sweepstakes

Run by a business to promote its products or services. No purchase or payment can be required, so a free alternative method of entry is offered with equal odds.

Skill contests

Winners are chosen on merit rather than chance. Rules on paid-entry skill contests vary from state to state, so check each state you operate in.

Charitable raffles

Nonprofits can run raffles under state law, and the rules differ widely. California, for example, requires registration, at least a year of existence and 90% of receipts to charity, and prohibits running raffles online.

+ Know before you run

What operators need to know.

The free entry method must be genuine, with free entrants given the same chance of winning as anyone who buys.
Some states require registration and a bond or trust account before the promotion starts, based on the total prize value.
Official rules should set out eligibility, dates, prizes and their value, the odds and how winners are selected.
In 2025 and 2026, California, New York, New Jersey and several other states banned sweepstakes casinos: dual-currency, casino-style games that pay out cash. Promotional sweepstakes tied to genuine sales are different, but scrutiny is rising.
New York's 2025 law also targets platform providers and payment processors that support banned sweepstakes casinos.
No sweepstakes is automatically lawful in every state. Many promotions exclude specific states.

03 Questions

Common questions.

Are sweepstakes legal in the US?

Promotional sweepstakes are widely used because they remove the payment element: no purchase is necessary and there is a free way to enter. Rules vary by state, and some states require registration and bonding for larger prizes.

What does no purchase necessary mean?

That anyone can take part without paying, through an alternative method of entry with the same chance of winning. It is what separates a sweepstakes from an illegal lottery.

Which states require sweepstakes registration?

New York and Florida require registration and a bond or trust account when total prizes exceed $5,000. Rhode Island requires a filing for retail chance promotions with prizes over $500.

What are the sweepstakes casino bans?

Laws passed in 2025 and 2026 in states including California, New York and New Jersey that ban dual-currency, casino-style sweepstakes games. California's law excludes promotions that are incidental to genuine sales, which is where traditional sweepstakes sit.

Can nonprofits run online raffles?

It depends on the state. Some allow online raffles under a license, while California prohibits running raffles online.

Sources

General information, not legal advice. Rules change and depend on exactly how a draw is run, so take advice for your own model. Reviewed September 2026.

04 Access

Running sweepstakes in the US? Talk to us.

Every Blockdraws draw is sealed before it opens and verifiable by anyone, so you can show winners were picked fairly, under your own brand.

Blockdraws is white-label draw software with every draw verifiable by anyone. Available by application.

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