Share on LinkedInShare on LinkedIn

ARTICLE · 08 FEBRUARY 2016

Five Things You Should Know Before Creating A Contest

As most readers of this blog know, a contest is quite different than a sweepstakes. Sweepstakes are games of chance.

United StatesMedia, Telecoms, IT, Entertainment

As most readers of this blog know, a contest is quite different than a sweepstakes. Sweepstakes are games of chance. The winners are selected at random and don't have to have any particular knowledge or skill – just good luck. On the other hand, contests are games of skill, in which the winners are determined based on some type of skill, knowledge or other attribute that they possess.

Designing a contest is also quite different because it does not require as much concern about violating anti-gambling laws. Virtually every state has a law that prohibits illegal gambling. These statutes define an illegal game as having three elements – a prize, chance, and consideration. If all three elements are present in a promotion, it is likely to be found illegal. Those of us who create rules for sweepstakes avoid illegal gambling by removing one of the elements, usually consideration (hence the "No Purchase Necessary clause"), which turns an illegal original promotion into a

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from