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 North Dakota, 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 typically includes three elements: consideration (entry fee or purchase requirement), chance, and a prize. To avoid being classified as a lottery, most sweepstakes remove the consideration element, allowing free entry. Contests, which are based on skill or merit rather than chance, can require consideration. North Dakota does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island. However, businesses must still follow general consumer protection laws and ensure transparency and fairness in their promotions. Official rules should address eligibility, entry methods, prize descriptions, odds of winning, and how winners will be selected and notified. It's important to note that if a sweepstakes or contest is open to residents of states with registration requirements, those rules must also be followed. Consulting with an attorney to ensure compliance with all applicable laws is advisable.