Regulation Watch: your new brief on promotions and contest law developments

Launching an international campaign means keeping up with a constantly moving target

This is because international sweepstakes regulations are always changing, and missing a single update before your giveaway goes live can cost you heavily and damage your brand’s reputation.

To help you protect your upcoming campaigns, we have rounded up the most important shifts in global prize promotion rules from the past few weeks. Here are the biggest legal updates from June that could impact your next launch.

New York’s new law forces disclosure of human avatars

On June 9, New York’s Synthetic Performer Law (N.Y. Gen. Bus. Law § 396-b) officially went into effect. The new law seeks to penalize brands that try to pass off “synthetic performers” as real people in their ads.

If your promotional campaign targets New York consumers and uses AI-generated personalities to promote prizes or encourage participation, you must ensure the appropriate disclosures are made.

New York state law defines synthetic performers as “digitally-created media that appear as a real person.” The new requirements apply to any medium, including print, digital photos, and videos.

If you don’t disclose the use of a synthetic performer in advertising your giveaways, promotions, and contests, you will be fined $1,000 for the first violation and $5,000 for any further violations.

You can, however, use AI voices for translation as long as your video ads use human actors or presenters. Just keep in mind that as AI-generated marketing becomes more common, regulators are placing greater emphasis on ensuring consumers know when they’re interacting with synthetic content.

Indiana’s ban on dual-currency sweepstakes is now active

Indiana officially became one of the latest US states to tighten oversight of sweepstakes after House Bill 1052 took effect on July 1, 2026. The new law specifically targets dual-currency promotional models that allow participants to purchase virtual items or tokens while receiving sweepstakes entries that can ultimately be redeemed for cash or cash-equivalent prizes.

The legislation marks another step in a growing state-level crackdown on so-called “gamblified” sweepstakes. Indiana now joins New York, California, and 6 other states that have implemented bans over the last year.

If your giveaway uses virtual currency, tokens, or dual-currency models, you need to double-check the rules to ensure you don’t accidentally run afoul of the new regulations. You also need to confirm the rules state-by-state, since more states are continually adopting similar sets of laws.

Australia signals tougher oversight of trade promotions

Australia is weighing a massive overhaul of its gambling and promotional marketing laws. On July 2, the government introduced the Interactive Gambling Amendment (Gambling Reform) Bill 2026, which is aimed at reducing gambling-related harm and strengthening regulatory oversight.

But while most of the reaction has centered around the proposed restrictions on betting ads, brands running giveaways should also be paying attention. The proposed bill also targets businesses using subscription-based prize promotions to drive customer sign-ups.

Regulators want to crack down hard on subscription-based promos that charge consumers a recurring fee, mostly just to get entries into a draw.

If you are running subscription-based promotions, it is time to look closely at what you are actually selling. Your subscribers need to get genuine value out of the service itself, not just a ticket to a raffle.

Keep your promotions compliant

Running international promotions is increasingly becoming more complex. Rules continue to evolve across jurisdictions, and a campaign that complies with one market’s rules may require significant adjustments before launching elsewhere. Always ensure you stay updated or consult with a promotions agency that can effectively handle the legal complications of an international promotion.

Need help managing international sweepstakes?

At Promosfera, we offer contest compliance services and can help you launch without legal hitches, in over 85 countries.