Can you require a purchase to enter a giveaway?

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Where the winner is drawn by chance, a required purchase supplies consideration, and a prize awarded by chance for consideration is the classic description of a lottery, which private parties generally cannot run in the United States or Canada. The alternatives creators use are a purchase route alongside a genuinely free one of comparable weight, or a judged promotion with no chance element — which changes the legal classification without removing the need to check the rules that apply to skill contests. Requirements vary by state and province, so treat this as general education rather than a determination about your promotion.

General information published by Dollar Fan Club — not legal advice. Read the full notice.

Four structures cover almost every version of this question. Find yours in the table, then read the note under it.

StructureWinner chosen byWorkable?
Entry is free for everyoneRandom drawYes — the simplest option
Purchase route plus a free route of equal weightRandom drawYes, if the free route is genuinely equal
Purchase route only, or purchase gets extra entriesRandom drawNo — this is the structure to avoid
Paid entry into judged submissionsPublished criteria and judgesA different legal question — see below

Why the purchase-only version fails

A prize awarded by chance to entrants who gave up something of value is a lottery. A purchase is the plainest form of that value — see consideration. Nothing in the wording of the post changes the mechanics, and the reasoning applies equally to a donation, an entry fee, or a paid tier.

The version with a free route

"Buy the thing and you're entered" is the structure that depends entirely on the free alternate method of entry sitting next to it. How to build that route — what counts as consideration, what makes a free route real, and how to word it — is the whole subject of "no purchase necessary" explained, so read that page rather than a summary of it here.

The contest alternative

Removing chance changes the classification rather than removing the analysis. Entries judged against published criteria by identifiable judges are generally assessed as a skill contest rather than a lottery, and skill contests carry their own requirements — how much genuine skill is involved, whether the jurisdiction treats mixed skill-and-chance promotions as gambling, entry-fee restrictions, and disclosure obligations. Some jurisdictions are permissive here and others are not, so this is a question for advice in the specific places you are open to, not a route we would describe as generally available. See sweepstakes vs contest vs lottery.

Reading the table above

The first three rows describe how the consideration element is generally analysed. The fourth is a different legal question, and the "workable?" column in every row is our reading of risk rather than a determination published by any regulator.

What we would keep in your template

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