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 Ohio, businesses that want to run a sweepstakes or contest must comply with both state and federal regulations to ensure their promotion is not considered an illegal lottery. Ohio law defines a lottery as a scheme that includes three elements: a prize, chance, and consideration (such as an entry fee or purchase requirement). To avoid being classified as a lottery, at least one of these elements must be removed. Typically, businesses eliminate the consideration element by allowing free entry. It's important to clearly state the official rules of the promotion, including eligibility, entry procedures, prize descriptions, and how winners will be selected and notified. While Ohio does not have the same registration requirements for sweepstakes as states like Florida, New York, and Rhode Island, businesses must still be mindful of consumer protection laws and deceptive advertising practices. Additionally, if the sweepstakes or contest is conducted online or involves participants from multiple states, federal laws and regulations, such as those enforced by the Federal Trade Commission (FTC), must also be considered.