The Potential Legal Traps in Sweepstakes: Guest Opinion
Sweepstakes are increasing in popularity with credit unions as key marketing tools. But, sweepstakes are highly regulated and can raise significant compliance issues.
A sweepstakes is a promotional device where chance determines who wins prizes. Conversely, in a contest, skill determines who receives prizes. Unlike either a sweepstakes or contest, in a lottery, players must contribute something, usually a small sum of money, to receive a chance to win something of greater value.