Having a raffle or contest sounds like a great way to get some publicity for your business with minimal effort. But is it legal?

But there are right and wrong ways to go about it. Choosing the wrong way could lead to legal liability. Instead, just find a way to work within the law.

Here are our top tips on how to do just that.

Legal Issues of Online Raffles for Nonprofit Fundraising | LegalZoom Legal Info

Prize-giving activities for businesses in the U. A sweepstakes is won by luck; everyone has an equal chance to be the winner simply by entering. But a contest requires some skill, like solving a puzzle. Most states define lotteries as a game with a prize where the winner is chosen by luck and you have to pay to play.

Stay out of it by allowing people to enter without purchase. You can avoid that by simply offering other prizes.

Make sure the rules are clear on how a winner is chosen and the details of the contest. Then post it somewhere people can find it.

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Top 5 Tips to Keep Raffles, Contests Legal By Deanne Katz, Esq. Notify winners by email, not social media.

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