If an activity meets the definition of gambling in the Gambling Act, it is prohibited unless authorized in law. Sweepstakes are not currently authorized by the Gambling Act. In general, a sweepstakes is a marketing or consumer sales promotion which involves the offering of prizes to participants where winners are selected by chance and no consideration is required. Consideration means an undertaking in response to a promise. There are generally two types of consideration in the context of sweepstakes promotions: monetary and nonmonetary.
Sweepstakes games sponsored by bona fide charitable or nonprofit organizations are authorized under the Gambling Act. The Gambling Commission can authorize and issue licenses for sweepstakes games. Bona fide charitable or nonprofit organizations must adhere to certain conditions when licensed or authorized to conduct a sweepstakes.
Those conditions include:
Unfair sweepstakes practices include:
Contestants must be given the opportunity to indicate if they wish to enter a phase of the contest for free. There are a number of restrictions on solicitation materials provided to clarify the rules of participation. Official rules must disclose the date or dates the winners will be announced.