Why most sweepstakes casinos are legal across the U.S.

These laws make it illegal to run or promote a lottery across state lines, including by mail or broadcast.

A “lottery” here means any game that includes:

• A prize
• Chance (the outcome is random)
• Consideration (you have to pay or give something of value to enter)

👉 Why it matters:

Sweepstakes operators stay legal by removing the “pay-to-play” element. That’s why they must offer free ways to enter, like mail-ins or daily bonuses.

🏛️ Statues:

• View 18 U.S. Code § 1301
• View 18 U.S. Code § 1302
• View 18 U.S. Code § 1303
• View 18 U.S. Code § 1304

These specific regulations of the Deceptive Mail Prevention and Enforcement Act control how sweepstakes can be marketed through the mail. It bans misleading claims like “You’re a winner!” if you’re not, and makes it illegal to suggest buying something improves your odds.

👉 Why it matters:

If sweepstakes are promoted by mail, they must:

• Say clearly that no purchase is necessary
• Accept mail-in entries without requiring any payment

🏛️ Statue:

• View 39 U.S. Code § 3001

This law gives the FTC the power to stop any unfair or misleading business practices, including sweepstakes bonuses and promotions.

👉 Why it matters:

All legal sweepstakes operators must be truthful and transparent. That includes:

• Accurate odds
• Honest prize descriptions
• Clear eligibility rules

Fake claims or shady promotions? Well, that can get shut down pretty fast.

🏛️ Statue:

• View 15 U.S.C. § 45

This comes into play when sweeps operators are pushed over the phone, and it makes sure there’s no glossing over the fine print – especially when prizes are on the table

👉 Why it matters:

If you run or promote sweepstakes by phone, you must:

• Say up front that no purchase is required
• Be honest about what people can win
• Avoid any bait-and-switch tactics

🏛️ Statue:

• View 16 C.F.R. Part 310

Applies to email marketing of sweepstakes.

👉 Why it matters:

Sweepstakes emails must:

• Let users opt out easily
• Avoid misleading subject lines (no “You’ve won!” unless they actually have)

🏛️ Statues:

• View 15 U.S.C. §§ 7701
• View 15 U.S.C. §§ 7702
• View 15 U.S.C. §§ 7703
• View 15 U.S.C. §§ 7704
• View 15 U.S.C. §§ 7705
• View 15 U.S.C. §§ 7706
• View 15 U.S.C. §§ 7707
• View 15 U.S.C. §§ 7708
• View 15 U.S.C. §§ 7709
• View 15 U.S.C. §§ 7710
• View 15 U.S.C. §§ 7711

These are rulings from courts and guidance from regulators like the FTC, USPS, and state attorneys general.

👉 Why it matters:

They’re the ones who shaped the standard definition of illegal gambling: Prize + Chance + Consideration.

Sweepstakes operators rely on these interpretations to stay within legal line, especially by dropping the “consideration” (payment) piece.