Sweepstakes, Contests, and Giveaway Laws in United States

Promotions in United States: rules

In the United States, prize promotions are classed as “sweepstakes” (linked to chance) and “contests” (talent competitions) and are subject to several state, federal and local laws and regulations. The key factors affecting the feasibility of a competition are: the headquarters of the promoting company, the rules of participation, the territorial scope of the competition, the value of the prize pool and the methods of communicating the initiative. The (federal and/or state) bureaucratic requirements necessary to carry out the promotion also depend on a combination of these factors.

Generally speaking, it should always be remembered that, in the United States, promotions which involve an obligation to buy are prohibited.


Promosfera is specialized in conducting prize promotions in United States as it can rely on a team that is specialized in international promotions as well as on the collaboration of specialized local partners.
To all the companies that are interested in promoting their services or products in United States we can provide complete assistance on:

  • Prize promotions
  • Gift With Purchase Promotions
  • Trade incentives
  • Loyalty programs

Some of our services:

  • A preliminary feasibility study
  • Consultancy on the promotional mechanics in compliance with the specific regulations of the country
  • Dealing with the paperwork in compliance with the regulations
  • Checking the communication material according to the provisions of the law
  • Tax consultancy concerning the prize events
  • Consultancy on Privacy

Organizing a prize promotion in United States: Did you know that…
As in Italy, a number of US states also require an insurance bond to be taken out to guarantee the prize pool. Furthermore, specific standards must be respected when publicising the competition