Many people use sweepstakes and contests interchangeably, but legally, they’re different.
Knowing the difference helps avoid costly mistakes.
Sweepstakes
-
Winners chosen by chance (random draw).
-
No skill required.
-
Must allow a free entry method.
-
Governed by strict state and federal regulations.
Read: Common Sweepstakes Mistakes That Can Cost You (2025 Update)
Contests
-
Winners chosen by skill (e.g., best photo, best essay).
-
Judged based on set criteria.
-
No need for a random drawing.
-
Rules still required, but less legal complexity than sweepstakes.
Don't miss: Legal Loopholes: What You Need to Know Before Running a Sweepstakes
Why It Matters
-
Mixing the two can trigger legal penalties.
-
Sweepstakes = compliance with gambling laws.
-
Contests = compliance with intellectual property and fairness standards.
Always label your promotion correctly to stay compliant and keep participants’ trust.
-
Be the first to know about our incredible prizes and never miss a chance to participate!
Subscribe now for the latest updates, entry opportunities, and insider tips to increase your chances of winning.
Related Articles
View all posts
Why the Best Sweepstakes May Be Designed Not to Go Viral...
Going viral is not always the goal. A large sweepstakes may attract bots, freebie hunters, and people who have no interest in your products. A smaller, targeted campaign can generate fewer entries but deliver bett...
Sweepstakes for Micro-Communities: How Small Brands Can Build Trust and Better Leads...
A sweepstakes does not need millions of views to succeed. For many small businesses, a promotion aimed at a trusted micro-community can generate better leads, stronger engagement, and more...
What to Do After a Sweepstakes Ends: Turn Entrants Into Customers...
Running a successful sweepstakes does not end when you select a winner. The real opportunity begins afterward, when you turn entrants into subscribers, customers, and long-term brand followers. A strong p...
Sweepstakes That Don’t Trash Your List: How to Design for Lead Quality, Not Just Entries...
Sweepstakes can grow your list fast, but if you’re not careful, they fill your CRM with freebie hunters who never buy. The fix is to design your campaign around lead quality, n...
Zero-Cash Prize Sweepstakes: How to Run High-Value Giveaways on a Tiny Budget...
You don’t need a big cash prize to run a sweepstakes that people care about. With smart planning, you can offer high-perceived-value rewards while spending little to nothing out of pocke...
Why Summer Has So Many Sweepstakes (And How Brands Use Them)...
If you've noticed more sweepstakes appearing during the summer, there's a good reason for it. Between Memorial Day and Labor Day, many companies launch giveaways offering prizes such as vacations, gift...
