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 Utah, 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. A lottery typically includes three elements: prize, chance, and consideration (entry fee or purchase requirement). To avoid being classified as a lottery, most sweepstakes remove the consideration element, allowing free entry. Utah law specifically prohibits lotteries but allows promotional contests and sweepstakes that do not require consideration. It's important to clearly state the rules, eligibility requirements, prize descriptions, and how winners will be selected. Unlike Florida, New York, and Rhode Island, Utah does not have specific registration requirements for sweepstakes based on the total amount of prizes. However, businesses must still ensure that their promotion complies with the Utah Consumer Sales Practices Act and federal regulations, such as the Deceptive Mail Prevention and Enforcement Act. Additionally, if the sweepstakes or contest is available online, it must comply with the Children's Online Privacy Protection Act (COPPA) if it collects information from children under 13.