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 Idaho, as in other states, businesses must ensure that their sweepstakes or contests do not qualify as illegal lotteries. A lottery includes three elements: prize, chance, and consideration (entry fee or purchase requirement). To avoid being classified as a lottery, at least one of these elements must be removed. Typically, businesses eliminate the consideration element by allowing free entry. Sweepstakes must have clear and conspicuous disclosure of the no-purchase-necessary message. Contests, which are based on skill, may require an entry fee as long as the winner is chosen based on skill and not chance. Idaho does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island do. However, businesses must still comply with general consumer protection laws and deceptive trade practices statutes. Official rules should address eligibility, entry procedures, odds of winning, prize descriptions, and how winners will be selected and notified. It's also important to consider federal regulations, such as those enforced by the Federal Trade Commission (FTC), which require transparency and fairness in these promotions.