Welcome to Your Ultimate Sweepstakes Glossary!
This comprehensive glossary of terms breaks down all the legal jargon, technical phrases, and insider terminology you’ll encounter—from AMOE to void where prohibited—in clear, simple language. Bookmark this definitions guide to decode official rules, spot red flags, and maximize your knowledge like a pro.
The information provided is for general educational purposes only and does not constitute legal, tax, or professional advice. Sweepstakes laws vary by jurisdiction and change over time. Always review official rules and consult qualified professionals before making legal decisions.
A
- Affidavit of Eligibility
- Definition: A legal document winners must sign to confirm they meet entry requirements (age, residency, etc.).
Why It Matters: Protects sponsors from fraud.
- Age Verification
- Definition: Process to confirm eligibility (e.g., “Must be 18+”).
Watch For: Some sweepstakes use third-party services to verify age.
- Alternate Method of Entry (AMOE)
- Definition: A free way to enter a sweepstakes without purchasing a product (e.g., mailing a postcard).
Legal Note: Required by law to avoid being classified as an illegal lottery.
- ARV (Approximate Retail Value)
- Definition: The dollar value assigned to prizes for tax/legal purposes.
Why It Matters: Determines tax liability (e.g., a $5,000 ARV vacation = $5,000 taxable income).
B
- Binding Arbitration
- Definition: A clause in official rules requiring disputes to be resolved through arbitration instead of court.
Legal Note: Enforceable under the Federal Arbitration Act.
- Bonus Code
- Definition: Unique code for extra entries (e.g., from sponsors’ emails).
Pro Tip: Check sponsor social media for unadvertised codes.
- Bonus Entry
- Definition: Extra entries earned by completing actions (e.g., sharing on social media).
- Business Reply Mail (BRM)
- Definition: Pre-paid mail-in entry method (common for AMOEs).
Legal Note: Must include valid return address per USPS rules.
C
- Cease-and-Desist List
- Definition: Database of entrants who opt out of future promotions.
Compliance: Required in some states (e.g., Michigan).
- Closing Date
- Definition: The final day entries are accepted.
- Confirmation Number
- Definition: Proof of entry (always save this if provided).
- Consideration
- Definition: Anything of value (money, time, effort) required to enter.
Legal Note: Sweepstakes cannot require consideration, or they become lotteries (illegal without state licensing).
D
- Daily Entry
- Definition: A sweepstakes allowing one entry per person per day.
- DBA (Doing Business As)
- Definition: Name a sponsor uses if different from legal entity.
Rule: Must match official filings to avoid fraud claims.
- Direct-to-Consumer (DTC) Sweepstakes
- Definition: Promotions run by brands directly, not through third parties.
- Disqualified Winner
- Definition: Someone who won but was later ruled ineligible (e.g., for breaking rules).
Red Flag: No legitimate sweepstakes asks for payment to “reinstate” a win.
E
- Entry Facilitation
- Definition: Third-party services that manage entries (e.g., Woobox).
Risk: Sponsor remains legally liable for their errors.
- Entry Limit
- Definition: The maximum number of times a person can enter (e.g., “One entry per household”).
- Entry Receipt
- Definition: Email/postal confirmation of submission (not all sweeps provide this).
- Express Consent
- Definition: Permission given by entrants to receive marketing emails (required under CAN-SPAM Act).
F
- Facebook Promotion Guidelines
- Definition: Meta’s rules for running sweepstakes on Facebook (e.g., requiring a release of liability).
- Flat-Rate Odds
- Definition: Fixed winning probability (e.g., “1 in 10,000 chance”).
Use Case: Common for instant-win games.
- Follow-Up Actions
- Definition: Steps winners must take (e.g., signing affidavits within 48 hours).
- Force Majeure
- Definition: A clause in rules allowing sponsors to cancel a sweepstakes due to unforeseen events (natural disasters, pandemics).
G
- Generic Email Address
- Definition: Official sender domain (e.g.,
winners@brand.com).
Scam Alert: Gmail/Yahoo addresses claiming you won are likely fake.
- Geofencing
- Definition: Tech restricting entries by location (e.g., no Rhode Island).
- Geolocation Tracking
- Definition: Used to verify entrants’ residency (e.g., restricting to 50 U.S. states).
- Grand Prize
- Definition: The highest-value prize offered (e.g., a car, vacation).
H
- Hold Harmless Clause
- Definition: Legal release shielding sponsors from prize-related lawsuits.
- Household Limit
- Definition: Restrictions on multiple wins per address (e.g., “1 prize per household”).
I
- Instant Win
- Definition: A game where winners are determined immediately (e.g., scratch-off codes).
- IRC (Independent Review Committee)
- Definition: Neutral party verifying winner selection (required in Canada, recommended for U.S.).
- IRS Form 1099-MISC
- Definition: Tax form issued to winners if the prize value exceeds $600.
J
- Joint and Several Liability
- Definition: When multiple sponsors share legal responsibility.
- Judging Criteria
- Definition: Rules for selecting winners in contests (e.g., creativity, skill).
- Judging Period
- Definition: Time between entry close and winner selection.
K
- Keyword Entry
- Definition: Text a word to a number for entry (standard message rates apply).
L
- Late Entries
- Definition: Submissions after deadline (must be voided per FTC rules).
- Late Winner Announcement
- Definition: Delays happen, but rules must state a timeframe (e.g., “Winners posted by 12/31”).
- Lottery
- Definition: A game of chance requiring consideration (payment) to enter. Illegal unless run by a state.
M
- Material Terms
- Definition: Legally required rule disclosures (dates, eligibility, prizes).
- Maximum Entries
- Definition: Cap on submissions (e.g., “10 entries per person”).
Violation Risk: Excess entries may void ALL your submissions.
N
- NO PURCHASE NECESSARY
- Definition: Mandatory disclaimer stating entries are free.
- No-Reply Email
- Definition: Automated sender (e.g.,
no-reply@sweeps.com).
Warning: Never respond to these—use official contact methods for verification.
- Notification Period
- Definition: Timeframe winners must respond to claim prizes (typically 48–72 hours).
O
- Odds of Winning
- Definition: Probability of winning, calculated as total entries divided by number of prizes.
- Official Rules
- Definition: Legally binding document outlining eligibility, entry methods, prize details, and sponsor info.
Legal Note: Must include ARV (Approximate Retail Value) of prizes.
P
- Predetermined Winner
- Definition: Illegal practice of fixing outcomes (violates state laws).
- Prize Fulfillment Timeline
- Definition: How long winners wait for prizes (often 6–8 weeks).
- Prize Pool
- Definition: Total value of all prizes offered.
- Publicity Release
- Definition: Agreement allowing sponsors to use winners’ names/likenesses in promotions.
Q
- Qualifying Period
- Definition: Timeframe during which entries are valid.
R
- Random Drawing
- Definition: Selection of winners by chance (e.g., computerized randomization).
- Random Number Generator (RNG)
- Definition: Algorithm for fair winner selection (must be cryptographically secure).
- Rejection of Prize
- Definition: Winners may decline prizes (but usually can’t transfer them).
- Restricted States
- Definition: States excluded due to local laws (e.g., Rhode Island for alcohol-related sweeps).
S
- Secondary Prize
- Definition: Lower-value award (e.g., “100 runners-up win T-shirts”).
- Skill-Based Elements
- Definition: Tasks that make a promotion a contest (not a sweepstakes).
- Sponsor
- Definition: The company/organization running the sweepstakes.
- Sweepstakes vs. Contest
- Sweepstakes: Winners chosen by chance.
Contest: Winners chosen by skill/judging.
T
- Taxable Income
- Definition: Prizes are considered taxable income by the IRS.
- Third-Party Liability
- Definition: Protects sponsors from lawsuits related to prize fulfillment (e.g., defective products).
- Tiebreaker Clause
- Definition: Rules for duplicate winning entries (e.g., earliest submission wins).
- Time Zone Stipulations
- Definition: Deadlines based on sponsor’s timezone (e.g., “ET” vs. “PT”).
U
- Unaffiliated Sponsors
- Definition: Co-branded promotions where one party isn’t liable (rare; usually joint responsibility).
- Unclaimed Prize
- Definition: Prizes not claimed within the notification period (often forfeited).
V
- Verification Call
- Definition: Legitimate sponsors may phone winners (but won’t ask for payments).
- Viral Sweepstakes
- Definition: Promotion encouraging entrants to share with friends for extra entries.
- Void Where Prohibited
- Definition: Standard disclaimer excluding jurisdictions where the sweepstakes is illegal.
- Void Without Verification
- Definition: Winners are disqualified if they fail background checks.
W
- Winner Selection Date
- Definition: The day winners are chosen (must be disclosed in official rules).
- Winner’s List
- Definition: Publicly posted names of winners (often on sponsor’s site).
