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 Vermont, as in other states, businesses must ensure that their sweepstakes or contests do not qualify as illegal lotteries. A lottery typically includes three elements: consideration (entry fee or purchase), chance, and a prize. To avoid being classified as a lottery, most sweepstakes remove the consideration element by allowing free entry. Vermont does not have specific registration requirements for sweepstakes or contests like Florida, New York, and Rhode Island do, but businesses must still comply with state consumer protection laws and federal regulations. The official rules for the sweepstakes or contest should be clear and comprehensive, addressing eligibility, entry procedures, prize descriptions, odds of winning, and how winners will be selected and notified. Additionally, the rules should include information on the sponsor's identity, any restrictions on entry, and how personal information will be used. It's advisable for businesses to consult with an attorney to ensure compliance with all applicable laws and regulations when structuring such promotions.