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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 Rhode Island, businesses that wish to run sweepstakes or contests must comply with specific regulations to ensure their promotion is not classified as an illegal lottery. Unlike lotteries, which are typically government-sponsored, sweepstakes and contests are legal promotional activities as long as they do not require consideration (such as a purchase or payment) to enter. Rhode Island, along with states like Florida and New York, requires businesses to register their sweepstakes or contests with the state if the total amount of prizes exceeds $500. The official rules of the promotion must be published and should address eligibility, entry methods, prize descriptions, odds of winning, and selection and notification of winners, among other issues. It's important to note that these regulations are subject to change, and businesses should consult with an attorney to ensure compliance with current state and federal laws.

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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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