The Sweepstakes AMOE In A Nutshell

A good sweepstakes promotion is one of the best ways to generate new business and retain existing customers. While effective as a marketing tool, a lawful sweepstakes must be distinguished at its inception from a lottery. For example, a lottery is made up of 3 elements: prize, chance, and consideration. Lotteries may only be offered by state government-run entities. If the element of consideration is removed, a lottery becomes a legal sweepstakes. This is where the alternative method of entry comes in — or "AMOE." A sweepstakes contest must offer an AMOE in order to meet this important regulatory requirement in setting up a compliant promotion. Please note that a complex array of federal and state consumer protection laws govern such promotional marketing campaigns. Companies must be aware of applicable regulations or risk significant financial and legal exposure.