What Is a Sweepstakes?

Author
The American Deals
Updated on: 04 January, 2026 11:22 AM
What Is a Sweepstakes?

A sweepstakes is a promotional drawing in which participants have the chance to win prizes based purely on luck, not on skill, knowledge, or performance. Winners are selected at random, making sweepstakes easy and accessible for everyone to enter.

How Sweepstakes Work

Participants enter a sweepstakes by submitting their information through an entry form, mail-in entry, or another approved method. Once the entry period ends, winners are randomly selected from all eligible entries.

Sweepstakes vs. Lotteries

Sweepstakes are often confused with lotteries, but there is an important difference:

  • Lotteries usually require participants to pay to enter.

  • Sweepstakes in the United States cannot require payment to enter.

To comply with U.S. anti-gambling laws, legitimate sweepstakes must always offer a free method of entry, commonly referred to as “No Purchase Necessary.” This ensures that everyone has an equal chance to win, regardless of whether they make a purchase.

Why “No Purchase Necessary” Matters

The “no purchase necessary” rule protects consumers and keeps sweepstakes legal. If payment were required, the promotion could be considered illegal gambling. By offering a free entry option, sweepstakes remain fair, transparent, and lawful.

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Common Uses of Sweepstakes

Sweepstakes are widely used by businesses and organizations to:

  • Promote products or services

  • Increase brand awareness

  • Engage customers and grow mailing lists

  • Reward loyal customers

Final Thoughts

Sweepstakes are a fun and legal way to give participants the chance to win exciting prizes without risk or cost. As long as entry is free and winners are chosen by chance, sweepstakes remain a popular and trusted promotional tool in the United States

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