Sweepstakes
The US model: no purchase necessary, with a free alternative method of entry and equal odds.
+ Sweepstakes and brand promotions · Guide
Sweepstakes and brand promotions.
Brands run prize promotions to drive sales and sign-ups, and almost every market requires them to be free to enter or tied only to a normal-price purchase. Here is how promotional draws work around the world.
01 At a glance
Country by country.
- United States
- Sweepstakes with no purchase necessary. New York and Florida register prizes over $5,000.
- Canada
- Contests with no purchase necessary and a skill-testing question, plus Competition Act disclosure
- Australia
- Trade promotion lotteries, with permits in NSW, the ACT, SA and the NT above set thresholds
- New Zealand
- Sales promotions, with no charge beyond the normal retail price
- Malta
- Commercial communication game permit from the MGA
- United Kingdom
- Free draws and prize competitions under the Gambling Act 2005
02 The models
Same idea, local names.
Every market has its own term for a promotional draw, and its own conditions.
Contests
The Canadian model: no purchase necessary and a skill-testing question before a prize is awarded.
Trade promotions
The Australian model: free to enter beyond buying goods at their normal price, with state permits above set thresholds.
+ Know before you run
What brands need to know.
- A free way to enter must be genuine, with free entrants given the same chance as buyers.
- Official rules should set out eligibility, dates, prizes, odds and how winners are chosen.
- Registration and bonding apply in some places above prize thresholds, such as New York and Florida.
- Avoid anything resembling casino-style or dual-currency sweepstakes, which several US states banned in 2025 and 2026.
- Australia's 2027 changes target subscription and recurring-entry models, so keep entry tied to genuine purchases.
- Malta asks promoters for proof that a game was run fairly and honestly.
03 Questions
Common questions.
What is the difference between a sweepstakes and a contest?
A sweepstakes picks winners by chance and must be free to enter. A contest picks winners by skill. In Canada, promotions usually combine a no-purchase route with a skill-testing question.
Do promotional draws need a permit?
Sometimes. Australian states such as NSW, the ACT, SA and the NT require permits above set prize values, Malta requires an MGA permit, and New York and Florida require registration for prizes over $5,000.
Can a promotion require a purchase?
Only at the normal price of the goods or services, and in the US and Canada there must also be a free way to enter.
How do brands prove a promotion was fair?
By fixing the draw before entries open and publishing the result in a form anyone can check, rather than asking entrants to take the brand's word for it.
Sources
- Florida Statutes section 849.094
- New York General Business Law section 369-E
- Competition Act, section 74.06
- Trade promotions, NSW Government
- Commercial communication games, MGA
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 promotions? Talk to us.
Every Blockdraws draw is sealed before it opens and published in full, so every entrant can check the result, under your brand.
Blockdraws is white-label draw software with every draw verifiable by anyone. Available by application.
Related guides United Kingdom United States Canada Australia All guides