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 Iowa, lotteries are generally illegal unless they are conducted by the state or certain exempt charitable organizations. The state operates the Iowa Lottery, which offers a variety of games, and the proceeds are used to benefit state causes. Charitable organizations may also conduct gaming activities, including bingo and raffles, under strict regulations and licensing requirements. If an individual encounters what appears to be an illegal lottery—a game requiring payment to participate with prizes awarded by chance—they should report it to the Iowa Attorney General's Consumer Protection Division. The Consumer Protection Division is responsible for enforcing laws related to consumer fraud, including illegal lotteries disguised as sweepstakes. It's important to distinguish between legal sweepstakes, which do not require a purchase or payment for entry, and illegal lotteries, which do.