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 Tennessee, lotteries are generally illegal unless they are conducted by the state or certain exempt charitable organizations. The state operates the Tennessee Lottery, which is the only form of state-sanctioned lottery allowed. Charitable organizations may also conduct lotteries if they meet specific criteria and obtain the necessary licenses. These organizations must comply with the Charitable Gaming Implementation Law. Any other form of lottery, which requires payment for participation and awards prizes by chance, is considered illegal gambling. If an individual in Tennessee encounters what appears to be an illegal lottery disguised as a sweepstakes, they are encouraged to report it to the local Post Office or the Consumer Protection Division of the Tennessee Attorney General's Office. The Attorney General's office is tasked with enforcing consumer protection laws and can take action against illegal gambling operations.