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 Mississippi, 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, at least one of these elements must be removed. Most sweepstakes remove the consideration element by allowing free entry. It's important to clearly define the official rules, eligibility requirements, prize descriptions, entry procedures, and selection of winners. Mississippi does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island, where registration is mandatory if the total amount of prizes exceeds a certain threshold. However, businesses must still adhere to the Mississippi Consumer Protection Act, which prohibits deceptive trade practices, and federal regulations such as the Federal Trade Commission (FTC) guidelines for advertising and marketing on the internet. Additionally, if the sweepstakes or contest is open to residents of other states, those states' laws must also be considered.