Sweepstakes are one of the most misunderstood promotions in marketing. Most people have entered at least one, but few understand how they actually work — who runs them, how winners are chosen, and what the law requires. This guide explains the mechanics from start to finish.
What Is a Sweepstakes?
A sweepstakes is a promotional giveaway where winners are selected by random chance. Unlike a contest, there's no skill involved — no essay, no photo submission, no judging panel. Anyone who meets the eligibility requirements and submits a valid entry has an equal (or proportional) shot at winning.
Sweepstakes are distinct from lotteries in one critical way: they cannot require a purchase to enter. A lottery charges money for a chance to win. A sweepstakes must always offer a free entry method — that's what makes them legal in the United States.
If you're curious about the precise legal distinction, see our article on why sweepstakes must always be free to enter.
Who Runs Sweepstakes?
Almost any organization can run a sweepstakes:
- Consumer brands use them to build email lists, drive product trial, or generate social media attention
- Retailers run purchase-adjacent sweepstakes (with a free AMOE) to increase traffic and engagement
- Media companies use them to grow audiences and reward loyal viewers
- Local businesses run them as community promotions
- Nonprofits may use sweepstakes for fundraising (subject to additional state requirements)
- Creators and influencers run giveaways to grow followings
Browse sweepstakes by sponsor type on Sweepstakes Radar →
How the Entry Process Works
Every legitimate sweepstakes has an official entry method described in its rules. Common entry methods include:
- Online form — Fill out a form on the sponsor's website with your name, email, and contact information
- Mail-in entry — Write your information on a 3×5 card and mail it to the sponsor's address (the free AMOE method for purchase-required sweepstakes)
- Social media action — Follow, like, comment, tag a friend, or share a post
- App download or account creation — Download the sponsor's app and register
- Text or SMS — Text a keyword to a number to enter
Many sweepstakes allow one entry per day for the duration of the promotion period. These daily entry sweepstakes are particularly valuable because they let you multiply your entries over time. Browse current daily entry sweepstakes to find active promotions worth entering every day.
How Winners Are Selected
At the close of the entry period, a winner is selected by random drawing. This can be done in several ways:
Computer-generated random selection is the most common method. A random number generator picks an entry from the pool. The process is usually logged and sometimes verified by an independent judging organization.
Third-party drawing services are common for large brand sweepstakes. Companies like Marden-Kane or Don Jagoda Associates manage the entire drawing process independently, which adds credibility and legal protection for the sponsor.
Periodic drawings — some sweepstakes draw winners weekly or monthly rather than in a single drawing at the end. Each drawing period covers entries received during that window.
The odds of winning are determined by the total number of valid entries received. If 200,000 people enter a sweepstakes with one grand prize, each entry has a 1-in-200,000 chance of being selected.
What Happens After a Winner Is Selected
Once selected, a winner must typically:
- Be notified — usually by email or phone within a specified window after the drawing
- Respond within a claim period — usually 24–72 hours; failure to respond forfeits the prize
- Submit an affidavit of eligibility — a legal document confirming you meet all entry requirements
- Sign a liability release — releasing the sponsor from responsibility for how the prize is used
- Consent to publicity (sometimes optional) — allowing the sponsor to use your name and likeness
For prizes over $600, the sponsor will also issue a 1099 tax form. Prize winnings are taxable income — see our full breakdown of sweepstakes taxes.
For a detailed walkthrough of the winner notification process, see what happens after you win a sweepstakes.
What the Sponsor Is Required to Do
Under U.S. sweepstakes law, sponsors must:
- Publish official rules — full terms must be publicly accessible before or when the promotion begins
- Award the advertised prizes — sponsors cannot change prizes after entries have been accepted
- Offer a free entry method — no purchase can be required
- Disclose odds of winning (or state that odds depend on total entries received)
- Fulfill prizes within the timeframe stated in the rules
For a full breakdown of the legal framework, see our guide to sweepstakes laws in the United States.
How to Tell If a Sweepstakes Is Legitimate
Legitimate sweepstakes share a consistent set of characteristics:
- Official rules exist and are publicly accessible
- The sponsor is identifiable — a real company or individual with a verifiable presence
- No purchase is required — there is always a free entry method
- You entered it — you cannot win a sweepstakes you didn't enter
- Winning notification comes to you — you're never asked to call a premium-rate number or wire money
If you're unsure about a sweepstakes you've found, browse verified listings on Sweepstakes Radar — every listing has been manually reviewed for legitimate official rules and a free entry method. See how we verify sweepstakes listings for our full review process.
How Sweepstakes Differ From Contests and Lotteries
These three terms are often confused:
| Type | Winner Selection | Purchase Required? | Legal? |
|---|---|---|---|
| Sweepstakes | Random chance | No (by law) | Yes |
| Contest | Skill or merit | Sometimes | Yes |
| Lottery | Random chance | Yes | Only government-run |
The legal distinction matters: a promotion that requires payment and selects winners by chance is a lottery — and private lotteries are illegal in the United States. Sweepstakes avoid this by always offering a free entry option.
For a full comparison, see sweepstakes vs. contest vs. giveaway — what's the difference?
The Bottom Line
Sweepstakes work by collecting entries, selecting a winner at random, and awarding the advertised prize. They're legally regulated, sponsor-funded, and completely free to enter. The key variable in your favor is volume — the more entries you accumulate across legitimate promotions, the better your long-run odds become.