One of the most notable ways that Sweepstakes and Raffles differ is the requirement that sweepstakes offer a free method of entry. This helps your Campaign comply with anti-gambling laws and makes Sweepstakes a good alternative if your organization can’t run a Raffle.
Why do Sweepstakes require free entries?
Sweepstakes must provide a free method of entry to avoid being classified as gambling. Most government agencies classify Raffles as gambling because individuals must purchase a chance to win. Because Sweepstakes require a free method of entry, the gambling classification is removed. (You can’t gamble for free.)
The primary benefit of avoiding gambling classification is that Sweepstakes allow organizations to reach a larger audience because they have fewer geographical restrictions than Raffles.
How does the free entry process work?
All Givebacks Sweepstakes display a list of official rules on the Sweepstakes page. The link to the free method of entry is included in these rules. To submit a free entry, people will need to:
Locate the link in the rules.
Click on the link and enter their email address.
Fill out a form, which they’ll receive via email.
Mail the form to the address included on the form to be entered into the drawing.
How many people typically use the free entry method?
There are limitations in place, e.g., one entry per person, to prevent people from over-utilizing the free method of entry. In our experience, free entries typically total less than one percent of the number of donation-based entries, and some Sweepstakes receive no free entries at all!
Most people are willing to donate to participate since they’re supporting a charitable cause. Additionally, those who enter for free can learn about the organization and its cause, so your organization still receives some benefits.
How do free entries affect my Sweepstakes Campaign?
The free entry requirement impacts several aspects of a Sweepstakes Campaign:
How does the drawing method work with free entries?
The winning entries must be drawn systematically at random by Givebacks. There is no way for the organization to draw winners manually, as is possible with a raffle.
Even though free entries are limited to one per person, the free entry receives the average number of entries donors have paid to enter the drawing. Calculating this by hand would be too complex and introduce the risk for human errors (which could make the drawing unfair). There is also no way to prove the drawing was done correctly should a gaming agency audit the drawing.
For the sake of fairness and simplicity, Givebacks uses a certified random generator to:
Calculate the average number of paid entries.
Assign the average number of paid entries to each free entry.
Run all entries through the drawing process to select a winner.
Why is there a delay between entry deadline and drawing date?
All entries must be received or postmarked by the entry deadline date. To comply with the equal dignity clause, sufficient time between the “Stop selling entries date and time” and the “Drawing date and time” is required to allow the free entries to reach the Givebacks office and be entered into the drawing. For this reason, there needs to be a three-business day minimum between the entry deadline date and when the drawing occurs.
What should I know about selling Sweepstakes entries offline?
Givebacks permits organizers to sell Sweepstakes tickets offline and input them manually. See the following Knowledge Base article for more information: How-to: Add Raffle or Sweepstakes Tickets That You’ve Sold Offline.
Please note that anyone who purchases a Sweepstakes ticket offline MUST be informed of the free method of entry. You will need to give a legally binding acknowledgment that this requirement has been fulfilled when you add offline Sweepstakes ticket purchases.
Frequently Asked Questions
What’s the main difference between Raffles and Sweepstakes regarding entry requirements?
Raffles allow donors to purchase entries only, while Sweepstakes must offer a free method of entry in addition to paid entries. This free entry requirement helps Sweepstakes avoid gambling classification.
Why must Sweepstakes offer free entries?
Sweepstakes must provide a free method of entry to avoid being classified as gambling under most jurisdictions. Since you can’t gamble for free, offering free entries removes the gambling classification and allows you to reach a larger audience with fewer geographical restrictions.
Do many people actually use the free entry method?
No, free entries typically account for less than one percent of total entries, and some Sweepstakes receive no free entries at all. Most people are willing to donate for entries since they’re supporting a charitable cause.
How many free entries can one person submit?
Givebacks limits free entries to one per person to prevent overutilization. However, each free entry receives the average number of entries that donors paid for, ensuring fairness in the drawing.
Can I manually draw winners for a Sweepstakes?
No, winning entries must be drawn systematically at random by Givebacks. Manual drawing is not possible for Sweepstakes because of the complexity of calculating free entry equivalents and the need to prove the drawing was fair for potential gaming agency audits.
Why is there a three-business day minimum between the entry deadline and drawing date?
This delay allows time for free entries to be mailed, received at the Givebacks office, and entered into the drawing. This complies with the equal dignity clause, which requires that free entries have a fair chance to be received before the drawing occurs.
What must I tell people who purchase Sweepstakes entries offline?
Anyone who purchases a Sweepstakes entry offline MUST be informed of the free method of entry. When you add offline entry purchases, you’ll need to provide a legally binding acknowledgment that this requirement has been fulfilled.
Questions? Click the "?" icon to contact Givebacks Support.