Many people use sweepstakes and contests interchangeably, but legally, they’re different.
Knowing the difference helps avoid costly mistakes.
Sweepstakes
-
Winners chosen by chance (random draw).
-
No skill required.
-
Must allow a free entry method.
-
Governed by strict state and federal regulations.
Read: Common Sweepstakes Mistakes That Can Cost You (2025 Update)
Contests
-
Winners chosen by skill (e.g., best photo, best essay).
-
Judged based on set criteria.
-
No need for a random drawing.
-
Rules still required, but less legal complexity than sweepstakes.
Don't miss: Legal Loopholes: What You Need to Know Before Running a Sweepstakes
Why It Matters
-
Mixing the two can trigger legal penalties.
-
Sweepstakes = compliance with gambling laws.
-
Contests = compliance with intellectual property and fairness standards.
Always label your promotion correctly to stay compliant and keep participants’ trust.
-
Be the first to know about our incredible prizes and never miss a chance to participate!
Subscribe now for the latest updates, entry opportunities, and insider tips to increase your chances of winning.
Related Articles
View all posts
Prize Fulfillment: What Happens After You Win a Sweepstakes...
If you’ve ever wondered what truly happens after you win a sweepstakes, here’s a simple walkthrough. The process is more structured than many expect, and knowing the steps helps you avoid delays, co...
U.S. Tax Considerations for Sweepstakes Winners: What You Need to Know...
Winning a sweepstakes can be exciting, but it’s important to understand the tax responsibilities that come with prizes. Knowing what to expect ensures you stay compliant and avoid surprises whe...
Top Online Sweepstakes to Enter Now: Your Chance to Win Big in 2025...
Looking for the best online sweepstakes to enter today? Here are some exciting, legitimate sweepstakes with great prizes and easy entry. Act fast before these popular contests end! Venmo S...
How to Stay Safe While Entering Online Contests...
Online sweepstakes are fun, but safety should always come first. Scammers often pose as legitimate contests to collect personal information or trick participants. Following a few key practices ensures you can enjoy give...
Top Red Flags: When a Sweepstakes Might Be Fake...
Sweepstakes can be exciting, but not every giveaway is legitimate. Scammers often disguise fake contests to collect personal details or trick participants into paying hidden fees. Here’s how to spot the warning si...
Best Times of the Year to Join Sweepstakes...
If you’ve ever wondered when your odds of winning are highest, timing might be your secret weapon. Sweepstakes run year-round, but certain seasons bring better opportunities, especially when brands boost promotions or cle...
