Note: Sweepstakes laws vary by jurisdiction and fact pattern. Schedule a consultation before launching any promotion.
Sweepstakes are effective marketing tools, but they are governed by a complex framework of federal and state laws. This pillar guide explains sweepstakes laws by state, with a detailed focus on registration and bonding requirements in New York, Florida, and Rhode Island, while addressing compliance considerations applicable nationwide.
All sweepstakes conducted in the United States must comply with federal law regardless of participant location. At the federal level, an illegal lottery exists when prize, chance, and consideration are all present. Lawful sweepstakes remove the element of consideration.
To comply with federal requirements, sweepstakes must include:
Federal oversight primarily comes from the Federal Trade Commission, which enforces consumer protection and advertising laws.
Only a small number of states impose formal registration or bonding requirements. These rules are strictly enforced and often overlooked by businesses unfamiliar with state-specific sweepstakes laws.
New York requires sweepstakes registration and bonding when the total prize value exceeds $5,000 and the promotion is open to New York residents. Registration must occur before the sweepstakes begins, and a winners list must be filed afterward.
These requirements are administered by the New York Department of State and are intended to protect consumers from deceptive promotions. Additional details are available here.
Florida maintains one of the most comprehensive sweepstakes regulatory schemes in the United States. If a sweepstakes is open to Florida residents and the total prize pool exceeds $5,000, the sponsor must register with the Florida Department of Agriculture and Consumer Services and post a surety bond equal to the total prize value.
Registration must be completed before launch, and a winners list must be submitted after the promotion ends. Failure to comply can result in fines, enforcement actions, and invalidation of the sweepstakes.
For Florida-specific guidance, see:
Rhode Island requires registration for certain sweepstakes conducted by retail establishments when the prize value exceeds $500. Unlike New York and Florida, Rhode Island generally does not require a bond, but registration must be completed prior to launch.
This requirement is narrow in scope but frequently misunderstood, particularly for in-store and retail-linked promotions. Learn more with our guide to legal requirements for Rhode Island sweepstakes registration.
The majority of states do not require sweepstakes registration or bonding. States such as California, Texas, Illinois, Pennsylvania, Ohio, and Washington rely on federal law and state consumer protection statutes.
However, the absence of registration requirements does not eliminate legal risk. Sweepstakes sponsors must still ensure promotions are not misleading, deceptive, or unfair under applicable state laws.
Even in states without registration mandates, sponsors should consider:
These issues frequently arise in enforcement actions when official rules are unclear or incomplete.
Because only a few states mandate registration, many national sweepstakes can operate legally without filing in most jurisdictions. This assumes the promotion is properly structured, clearly documented, and legally reviewed before launch.
Skipping legal review often leads to compliance issues that surface after launch, when remediation is more costly and disruptive.
Working with a qualified sweepstakes lawyer helps ensure that your promotion is compliant with federal and state law. Legal counsel can assist with drafting official rules, determining registration obligations, preparing filings, and structuring promotions to reduce regulatory risk.
Legal review is especially important for promotions with high prize values, nationwide reach, or complex entry mechanics.
If you are planning a sweepstakes and want to ensure compliance with sweepstakes laws by state, contact us to schedule a consultation.
No. Only a small number of states require registration, primarily New York, Florida, and Rhode Island. Most states rely on federal law and general consumer protection statutes, but compliance remains essential.
Failure to register can result in fines, enforcement actions, and invalidation of the sweepstakes in that state. Sponsors may also face reputational and contractual risks.
Some sponsors exclude these states to avoid registration and bonding requirements. Any exclusions must be clearly disclosed in the official rules and applied consistently.
Generally, online sweepstakes are subject to the same federal and state laws. However, Rhode Island’s registration requirements often apply specifically to retail establishments.
Author
Ethan Wall, Esq.
Founding Attorney, The Social Media Law Firm l Nationally Recognized Social Media Lawyer
Legal Disclaimer: This content is for informational purposes only and does not constitute legal advice.
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