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Additionally, the United States has strict laws barring private lotteries, so in order to be legal, sweepstakes and contents need to differentiate themselves from lotteries. A lottery is defined by law as a promotion that has all three of the following elements:
- The promotion is offering prizes that have value
- The winners of the promotion are chosen at random
- There is an element of consideration
In order to NOT be classified as an illegal lottery, at least one of these elements needs to be missing. Because prizes and luck are central to sweepstakes, the element of consideration is usually eliminated.
California Sweepstakes and Contest Laws
California’s sweepstake and content laws are quite strict when it comes to alcohol. You cannot require or even encourage someone to purchase alcohol to win a prize, therefore you cannot offer game labels on corks, bottle caps, labels, or other alcoholic beverage packaging. You cannot require people to visit a retail location that sells alcohol to complete an entry. So, if entry forms are being offered at liquor stores, bars, or other licensed locations, there must be another way to get them. Furthermore, alcohol cannot be the sole prize awarded. Instead, it must be an “incidental part of a prize package”.
Disclaimer: This information is not complete and only aims to display the most prominent state-specific deviation from Federal laws. This information is for general reference purposes only and is not to be considered legal advice or opinion.
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