Unlike a sweepstakes, a lottery is a promotional device by which items of value (prizes) are awarded to members of the public by chance—but some form of payment is required to participate. Lotteries are illegal, except when conducted by states and certain exempt charitable organizations. If you believe you have received a solicitation characterized as a sweepstakes that is in fact an illegal lottery, you should contact your local Post Office or state Attorney General’s consumer protection office.

In California, lotteries are generally illegal unless they are conducted by the state or certain exempt charitable organizations. The California State Lottery Act of 1984 allows the state to run a lottery, and the proceeds from the lottery games are used to provide supplemental funding to public education. Charitable organizations can also conduct raffles under specific conditions set by the state's Penal Code, provided they are registered with the Attorney General's office and adhere to the regulations governing such raffles. Any other form of lottery, which requires a payment to participate and awards prizes by chance, is considered illegal. If an individual encounters what appears to be an illegal lottery disguised as a sweepstakes, they are advised to report it to their local Post Office or the consumer protection office of the state Attorney General. The Attorney General's office is tasked with enforcing consumer protection laws and can take action against illegal gambling operations.