Gaming & Skill

Short answer: Generally yes, but several states impose significant additional restrictions — and a true sweepstakes requires a genuinely equal free alternative method of entry. The model is not a universal solution to gambling law.

The sweepstakes structure works by removing 'consideration' — players can enter for free, which prevents the activity from being classified as a lottery. Done correctly, sweepstakes operate in most states. But several jurisdictions impose meaningful constraints: New York, Florida, and Rhode Island require registration and bonding for sweepstakes over certain prize thresholds; Washington, Michigan, and several others have rules that have been used to challenge dual-currency social-casino-style sweepstakes; and Montana effectively prohibits the model for casino-style games.

The most common drafting mistake is making the free entry method theoretically available but practically inferior — slower, lower-quality, or harder to find. Courts and AGs have consistently held that AMOE must be genuinely equal in opportunity and convenience.