Laws and Rules for Sweepstakes in Pennsylvania
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 Pennsylvania
Running a sweepstakes or contest in Pennsylvania can be a powerful way to engage your audience, increase brand awareness, and reward loyal customers — as long as the sweepstakes is structured in a way that complies with state and federal laws. Pennsylvania has specific rules that help keep sweepstakes fair, transparent, and free from deceptive practices.
No Purchase Necessary: A Core Requirement
One of the most important principles of Pennsylvania sweepstakes is that no purchase is required to enter or win. This means that you cannot make participants pay, buy something, or give anything of value in order to enter a sweepstakes. To stay compliant, you must offer a free alternate method of entry (AMOE) that allows people to participate without paying anything. This "no purchase necessary" rule is essential because it ensures your sweepstakes is not treated as an illegal lottery under Pennsylvania law.
Clear Disclosures & Transparency
Pennsylvania law also emphasizes clear and conspicuous disclosures in sweepstakes advertising and official rules. All promotional materials for a sweepstakes must include key details like eligibility requirements, how to enter, how winners are selected, odds of winning, and how winners will be notified. Sponsors must also disclose that no purchase or payment is required and provide accurate information on prize details so participants are not misled.
Contest vs Sweepstakes in Pennsylvania
While often used interchangeably, sweepstakes and contests are different types of promotions:
- Sweepstakes are based entirely on chance, with winners selected randomly from eligible entries.
- Contests rely on skill, judgment, or performance — for example, submitting a creative entry judged by a panel. Contests don't require the same "no purchase necessary" language, but they still need transparent rules and clear judging criteria.
Best Practices for Pennsylvania Sweepstakes
To run a successful and compliant sweepstakes in Pennsylvania:
- Always include a strong "No purchase necessary to enter or win" statement.
- Make your official rules easy to find and understand.
- Provide a free method of entry that is as fair and accessible as paid entry options.
- Include clear details about prizes, how winners are chosen, and any eligibility requirements.
Pennsylvania (PA)
Pennsylvania restricts contest prizes. The total value of all prizes for a contest can’t be more than $1,000 and the total value of all prizes awarded in any 7-day period is limited to $25,000. Alcoholic beverages also can’t be part of a prize.
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- Pennsylvania Telemarketer Registration Act
- In Pennsylvania, a telemarketing company offering a sweepstakes, contests or game must adhere to disclose requirements when making any representation that a person has won or been selected or may be eligible to receive a prize.
- A telemarketing company must provide the odds of winning and advise the participant that no purchase or payment is necessary to win or obtain a prize.
Legal Review Criteria: Dominant Factor Doctrine 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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