If you want your business to run a sweepstakes or contest you must be careful to structure the promotion so it is not characterized as a lottery under state and federal law, as lotteries are illegal unless sponsored by government entities. Some states, such as Florida, New York, and Rhode Island have registration requirements if the total amount of prizes exceeds a certain amount. And there are a number of issues you should address in the official rules you publish with the sweepstakes or contest.

In Georgia, businesses that want to run sweepstakes or contests must comply with both state and federal regulations to ensure their promotions are not considered illegal lotteries. An illegal lottery includes three elements: prize, chance, and consideration (entry fee or purchase requirement). To avoid being classified as a lottery, most sweepstakes remove the consideration element by allowing free entry. Georgia law requires that sweepstakes must clearly disclose terms and conditions, including no purchase necessary to enter, methods of entry, odds of winning, and prize descriptions. While Georgia does not have the same registration requirements for sweepstakes as states like Florida, New York, or Rhode Island, businesses must still adhere to the Deceptive Trade Practices Act to prevent misleading advertising. Additionally, the official rules of the sweepstakes or contest should address eligibility, entry procedures, prize details, selection of winners, and how winners will be notified. It's advisable for businesses to consult with an attorney to ensure compliance with all relevant laws when structuring such promotions.