Legal Classification: Sweepstakes Mode vs. Raffle
HI, this isn’t tax or legal advice—please check with your tax advisor to get the exact details for your situation.
When you switch on Sweepstakes Mode, your event is treated as a true prize promotion rather than a traditional gambling raffle. Under the sweepstakes classification, no purchase is required to enter, which removes the element of “consideration” that most states define as a form of gambling. As a result, your event falls under prize-promotion regulations—an approach that’s far simpler to manage and far less restrictive from a compliance standpoint.
Key benefits of Sweepstakes Mode
- No Purchase Necessary
By offering a free entry path, you eliminate the need for a paid ticket. Participants can still enter by completing a simple form, meeting the common sweepstakes requirement in every U.S. jurisdiction. - Broader Audience & Reduced Risk
Without the stigma or legal hurdles of gambling, you open your fundraiser to a wider demographic—schools, nonprofits, community groups—and avoid the patchwork of state gaming commissions. - Automatic Hybrid Support
New Raffle’s platform lets you run raffles, sweepstakes, or both simultaneously.
Please note: While Sweepstakes Mode clears the majority of state-level gambling concerns, regulations can vary.
We always recommend reviewing your local laws or consulting a legal advisor before launching.