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 Mexico, as in other states, businesses must ensure that their sweepstakes or contests do not qualify as illegal lotteries. A lottery 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. Typically, businesses remove the consideration element by allowing free entry. New Mexico does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island do. However, businesses must still comply with state and federal consumer protection laws, which require clear and conspicuous disclosure of the rules, terms, and conditions of the promotion. This includes detailing how to enter, describing the prizes, and stating the odds of winning. Additionally, businesses must avoid deceptive practices and ensure that the promotion does not unfairly discriminate against any participants. It's advisable for businesses to consult with an attorney to ensure compliance with all applicable laws when structuring a sweepstakes or contest.