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 New Hampshire, 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 eliminated. Most businesses remove the consideration element by allowing free entry. It's important to clearly define the official rules for the promotion, including eligibility, entry procedures, prize descriptions, and how winners will be selected and notified. While New Hampshire does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island, businesses must still adhere to the state's consumer protection laws and the federal Deceptive Mail Prevention and Enforcement Act. Additionally, if the sweepstakes or contest is available online, it may be subject to the Children's Online Privacy Protection Act (COPPA) if it collects personal information from children under 13. It is advisable for businesses to consult with an attorney to ensure full compliance with all applicable laws.