If you’re asking yourself:
- are cash prizes legal?
Then you’re asking the right questions and you’re already on the right track! Here’s how to run a successful and legal promotional event.
Promotional drawings are a great marketing tool for smaller companies looking to pique interest toward a product or service or just boost awareness for the brand itself.
Which brings us to the first important part of running a successful promo event: being enticing. It’s no secret that cash prizes attract attention but are cash prizes even legal?!
Generally speaking, cash prizes are not legal unless they clearly and accurately follow the lottery laws. Laws vary by country and even state so be sure to do your homework carefully before you agree to give away a cash prize.
This is closely tied to the second most important detail to look out for: your terms and conditions. Make sure to display detailed terms and conditions description for your promotional event. Failure to do so will not only confuse and frustrate potential entries to the event, but it is also illegal in the majority of jurisdictions. Be sure to include:
- The full name of the promoter and relevant partners or sponsors
- Any restrictions for entry
- The last day one can submit an entry
- HOW and WHEN the winner will be decided
Determining WHEN you will choose your prize drawing winner and HOW you will announce the winner is the final key to your event’s success. Make sure that the winner is chosen completely at random and that you announce the winner publicly. Never extend a deadline for applications and, in your event rules, be sure to mention how long the winner has to claim their prize before another winner is chosen!
BONUS TIP: The last key to your success is customer/follower/viewer participation. If you call on the participants to choose how you reveal the winner or where, your event will generate even more buzz! But be careful: in Europe, you must be compliant with the privacy requirements of GDPR (General Data Protection Regulation).
We hope this answered the question ‘are cash prizes legal?’ and then some! Follow these rules and you will see the success you want and need!