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 Kansas, businesses that want to run a sweepstakes or contest must comply with both state and federal regulations to ensure that their promotion is not considered an illegal lottery. A lottery typically 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. It's important to clearly distinguish between sweepstakes (which are games of chance) and contests (which are based on skill). Kansas does not have specific registration requirements for sweepstakes or contests based on the total amount of prizes, unlike states such as Florida, New York, and Rhode Island. However, businesses must still adhere to general consumer protection laws and ensure transparency by publishing official rules. These rules should address eligibility, entry procedures, prize descriptions, odds of winning, and how winners will be selected and notified. Additionally, businesses should be aware of the federal Deceptive Mail Prevention and Enforcement Act, which governs sweepstakes through the mail, and the Children's Online Privacy Protection Act (COPPA) if the promotion is directed towards children under 13.