Laws and Rules for Sweepstakes in New York
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 Requirements in New York
When planning a sweepstakes or contest in New York, it's important not only to follow the legal requirements outlined below, but also to understand why those rules matter and how they affect your campaign planning. New York has some of the most specific prize sweepstakes laws in the United States, which makes this page a valuable resource for marketers, small business owners, and brands running sweepstakes targeting New York residents.
What Makes New York Different?
New York requires registration and surety bonding for sweepstakes where total prize value exceeds $5,000. This means a Sponsor must file official documents with the New York Department of State before the giveaway begins and secure a bond that guarantees prizes will be awarded. This protects entrants and helps the state ensure rules are followed.
In addition to filing, sponsors must post complete sweepstakes rules and often provide abbreviated versions in advertising. After the sweepstakes ends, New York mandates that a winner list is filed with the state. These extra disclosure steps help maintain transparency and compliance across all sweepstakes campaigns.
How Sweepstakes & Contests Differ
In New York — and across the U.S. — sweepstakes and contests are treated differently based on how winners are selected:
- Sweepstakes rely on chance with winners chosen randomly from eligible entries.
- Contests are based on skill or judging criteria.
This distinction matters because only sweepstakes require "no purchase necessary" language and a free alternate method of entry. If a contest includes an entry fee or purchase requirement without a free method, it may be treated as an illegal lottery.
Best Practices for New York Sweepstakes
To run an effective and compliant sweepstakes:
- Use clear language like "No purchase necessary to enter or win" at every touchpoint.
- Make sure entry methods and deadlines are easy to find.
- Include a link to your full privacy policy so entrants understand how their data will be used.
- Work with a promo specialist to ensure your rules, disclosures, and filings meet New York's regulatory standards.
Primary Sources — New York Sweepstakes Law
- New York Attorney General — Charities Bureau (sweepstakes registration authority)
- New York General Business Law § 369-e — Prize promotion disclosure requirements
New York (NY)
Like Florida, New York also requires that you bond and register any sweepstakes where the prize exceeds $5,000 or more. This must be done 30 days before the start date. Winners’ names and addresses must also be provided afterwards.
Contests: are allowed as long as the sponsor awards the prize based on skill and not chance.
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws- New York Prize Award Schemes
- New York requires that all Sweepstakes offered to New York residents, whose aggregate prize values exceed $5,000 must register and bond the promotion with the New York Department of State.
- Sweepstakes rules or abbreviated rules must be posted in any participating retail locations and included in all advertisements.
- All sponsors must file a winner's list with the state at the conclusion of the sweepstakes.
- Prize promotion disclosures are required for all sweepstakes, except for those offered by retail stores as long as the promotion is incidental to the retail stores business and the only requirement to receive the prize is limited to the winner traveling to the store.
Prize Promotion Laws- New York Telemarketing and Consumer Fraud and Abuse Prevention Act.
- If a telemarketing campaign includes a sweepstakes, the sponsor must keep records and provide disclosures directly related to the prize promotion.
New York 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: Material Element Test when assessing whether or not chance determines the outcome of a promotion.
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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