Regulatory watch: September brief

A September snapshot of global sweepstakes regulations shaping cross-border promotions

Running cross-border promotions requires brands and promotion agencies to keep an eye on any changes in global sweepstakes regulations. If a new law is introduced and your campaign doesn’t factor it in before launch, it could end up being costly.

We’ve been tracking recent changes in sweepstakes and contest regulation changes, and here’s a summary of the related September regulatory review brands need to be aware of.

UK: HFSS Advertising and Price Promotion Ban (delayed but imminent)

The UK has been actively trying to ban advertising for less healthy foods since 2022. This category includes products high in fat, salt, or sugar (HFSS), and the ban covers both media and online advertisements, including online promotions. It’s all being done to tackle the issue of child obesity.

The new rules were set to come into effect on October 1, 2025. However, after some lobbying from advertisers and food companies, the full implementation has been pushed to January 5, 2026. Nevertheless, the government has urged the industry to voluntarily comply with the regulations from October 1. Most of them have committed to it, although this self-imposed compliance is ultimately unenforceable.

The original legislation passed in 2022 wasn’t very clear on whether businesses can still advertise their brands, as it only mentioned “identifiable HFSS products”.

Following stakeholder debates, the UK government responded by passing the Advertising (Less Healthy Food and Drink) (Brand Advertising Exemption) Regulations 2025 on September 10, 2025. It exempts brand advertising as long as it doesn’t depict a specific product, and it will come into effect on October 31, 2025.

This means that running online promotions for products that contain high levels of sugar or fat to the UK audience could now be frowned upon. And from January 5, 2026, it will be outright illegal.

Montana’s sweeping ban on digital promotions (effective Oct 2025)

Many states in the US are currently weeding out sweepstakes gambling, which generally involves exchanging money for virtual coins that can be used for gaming. The player can then exchange their winning coins for prizes or cash.

This has been a loophole for navigating gambling regulations, but states like Montana, Connecticut, Louisiana, and Ohio have passed or are currently passing rules to ban it.

While these restrictions don’t apply to sweepstakes promotions (different from sweepstakes gaming), Montana’s wording is quite broad, causing concern in the advertising industry. The law states that any “platform, website, or application” that knowingly transmits gambling information or allows bettors to place wagers may face severe penalties — up to 10 years in prison or fines of up to $50,000.

It then doesn’t define currency, which means that sweepstakes campaigns that let users accrue points (which may qualify as virtual currency) and use them for prize draws or redemption are at a high risk.

Why compliance monitoring matters

The updates from the UK and Montana are a good illustration of the fact that promotion rules don’t often make headlines. Since they are evolutions and not overhauls, they can often go under the radar.

However, as a brand, it’s your responsibility to ensure compliance. You can do this by keeping track of global sweepstakes regulations, but relying on industry experts is often safer for most small and medium businesses.

Then, here are a few final checks.

• Review the mechanics and entry requirements to confirm that everything is compliant with local laws. You may need to be more cautious if your campaign requires purchases or has some gamified elements. Depending on how it works, it may qualify as a lottery or sweepstakes casino game in some regions.
• Geo-restrict your campaign such that it only works in the countries where it’s fully compliant. You should also state qualifying countries in the T&C and then tailor the rules where necessary.
• Document your compliance process, just in case of an audit or investigation.

This will help you show the different authorities that you’ve taken responsible steps to comply with the law.

Looking to launch an international promotion?

At Promosfera, we have 19 years of experience organizing and guiding brands through cross-border sweepstakes and contests. You can rely on our expertise to ensure your campaign is compliant and successful, regardless of the market you want to target.