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sweepstakes and contests

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 York, 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. New York law requires businesses to register their sweepstakes or contests with the New York State Gaming Commission if the total value of all prizes exceeds $5,000. The registration process includes posting a bond and paying a fee. Additionally, the official rules of the sweepstakes or contest must be clearly published and made available to participants. These rules must include details such as eligibility criteria, entry methods, prize descriptions, odds of winning, and the selection process for winners. It's important to note that the rules must not require a purchase for entry, as this could classify the promotion as a lottery, which is illegal unless run by a government entity. Failure to comply with these regulations can result in penalties, fines, or legal action.

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Business

sweepstakes and contests

Wall Street Quality Legal Services Customized for Main Street Businesses

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Business

sweepstakes and contests

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