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 Hawaii, as in other states, businesses must ensure that their sweepstakes or contests do not qualify as illegal lotteries. A lottery includes three elements: consideration (entry fee or purchase), chance, and a prize. To avoid being classified as a lottery, most sweepstakes remove the consideration element by allowing free entry. Hawaii does not have specific registration requirements for sweepstakes or contests like Florida, New York, or Rhode Island, but businesses must still comply with state and federal laws governing these promotions. This includes providing clear and conspicuous official rules, obtaining necessary bonds if required, and adhering to marketing and advertising regulations. The official rules should address eligibility, entry procedures, prize descriptions, odds of winning, and how winners will be selected and notified. It's also important to respect privacy laws and the prohibition of marketing to minors. Consulting with an attorney to ensure compliance with all applicable laws is advisable when structuring such promotions.