Sweepstake and Contest Laws

Do you know the laws and rules that regulate sweepstakes and contests in the U.S.?
See below for insight into the various laws that apply by state.

Laws and Rules for Sweepstakes in Illinois

Last reviewed: March 2026

First, it helps to understand the difference between a sweepstakes, contest and lottery. In a sweepstakes, winners are chosen randomly from all participants. In a contest, the winners’ entries are usually judged and are based on a skill or criteria. In a lottery, winners are chosen at random, but in order to enter, the participant must pay. A payment is called a consideration. Only states can hold lotteries, so all private lotteries are illegal.

To avoid being classified as an illegal lottery in any state, your promotion can only have 2 of these 3 elements: prize, chance and consideration. Keep in mind, consideration can mean anything of value, including a fee or even a significant effort (i.e., time spent shooting/submitting a photo, etc.)

Here are possible combinations:

Prize + consideration + chance = illegal lottery or gambling
Prize + consideration = legal contest (in most jurisdictions)
Prize + chance = legal sweepstakes

All sweepstakes in the United States must meet the following regulations:

No purchase necessary. You can enter the sweepstakes without buying a product or service.
Winners are required to pay taxes on prizes they win.

Sweepstakes are regulated nationally and by state by the following organizations:

Federal Trade Commission (FTC)
Federal Communications Commission (FCC)
United States Postal Service (USPS)
United States Department of Justice (DOJ)

State Specific Sweepstakes & Contest Laws

Besides federal considerations, every state has its own specifics laws regarding sweepstakes and contests.

Understanding Sweepstakes & Contest Rules in Illinois

Running a sweepstakes or contest in Illinois can be an effective way to engage with your audience, grow your brand, and reward loyal customers — as long as the sweepstakes is structured in accordance with state law. Illinois law is designed to protect consumers from deceptive practices while allowing fair and transparent sweepstakes and contests to operate.

What Makes Illinois Sweepstakes Unique?

In Illinois, a sweepstakes is defined as a promotion where winners are selected by chance, not skill, and there must be no purchase or payment required to enter or win. This is a fundamental requirement under the Illinois Prizes and Gifts Act, and it helps ensure that your sweepstakes does not become an illegal lottery.

Illinois strictly prohibits conditioning sweepstakes entry on any kind of consideration, which can include money, fees, or even other forms of value. If participants are required to pay or provide something of value to enter the sweepstakes, the activity could be considered an illegal lottery or gambling under state law. The state also requires that promotional materials include clear and truthful disclosures detailing key aspects like eligibility, prize details, the odds of winning, and how to enter.

Sweepstakes vs Contests in Illinois

Although sweepstakes and contests are both types of promotions, they work differently:

A sweepstakes awards prizes randomly among eligible entries with no purchase necessary.
A contest awards prizes based on skill or merit, like the quality of an entry, a judged performance, or other objective criteria. Contests are legal as long as no consideration is charged for participation.

Best Practices for Illinois Sweepstakes

To operate a compliant sweepstakes in Illinois:

Clearly state that no purchase is required to enter or win.
Provide a free method of entry alongside any other entry options.
Ensure all promotional language and official rules are transparent, complete, and accessible.
Respect privacy and disclose how entrant data will be used in compliance with consumer protection norms.

Primary Sources — Illinois Sweepstakes Law

Illinois (IL)

Illinois sweepstakes must be no purchase necessary. This means no payment to receive, use, compete for, or get written information about a prize.

Contests: Allowed as long as the sponsor awards the prize based on skill and not chance. Illinois Prizes and Gifts Act prohibits sponsors from charging a consideration (i.e., money) to participate in a contest.

Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.

Prize Promotion Laws - Illinois Prizes and Gifts Act

If sponsors use print advertisements or marketing materials to offer the promotional prizes, then those printed documents must include disclosures like Official Rules and Abbreviated Rules.
Sponsor must deliver the prize within 30 days.

Illinois Cannabis or Marijuana Sweepstakes or Contest Laws

Cannabis or any product containing cannabis, such as food or drinks are not allowed as prizes.
Purchases of any related products can’t be required for entry.
Make sure that your sweepstakes is only open to entrants age 21 or older with proof of age.
Any ads must have a disclaimer about the state’s legal age for marijuana products, if any.
Similar to the tobacco and vaping industries, brands cannot use any type of marketing that can be construed as trying to appeal to children (characters, mascots, games, etc.)
Don’t advertise your brand or giveaway in public (or private) places where children may be present, including billboards, buses/vehicles, television, and radio.
Don’t use Facebook, Google, or any other advertising or marketing channel that specifically prohibits promotions involving illegal drugs to promote your giveaway.
Do not allow mail-in entries as this could be considered as interstate commerce.

Legal Review Criteria: Uncertain.

Note: the information above is for informational purposes only and should not be construed as legal advice. Sweepstakes and Contest promotional laws change and the above may not reflect the must current laws.

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