Lottery

A promotion combining prize, chance, and consideration — generally reserved to the state or to licensed operators.

If entrants must pay to be in a random draw, the promotion is a lottery. In the United States the federal statutes target the machinery — carrying lottery matter through the mail, and postal enforcement — while the definition of the offence itself sits in state law and varies. In Canada, section 206 of the Criminal Code restricts lottery schemes, with lawful operation largely reserved to provincial and licensed operators.

This is the distinction that turns a marketing idea into a legal problem, and it is not fixable by a disclaimer.

Sources

• 18 U.S.C. § 1302 — Mailing lottery tickets or related matter — Cornell Legal Information Institute · Statute — Tier 1
• 39 U.S.C. § 3005 — Unlawful matter; false representations; lotteries — Cornell Legal Information Institute · Statute — Tier 1
• Criminal Code, s. 206 — Offences in relation to lotteries and games of chance — Justice Laws Website, Government of Canada · Statute — Tier 1

Guides that use this term

• How to legally run a social media giveaway
• "No purchase necessary" explained for creators
• Sweepstakes vs contest vs lottery: what creators are actually running
• Can you require a purchase to enter a giveaway?
• Canadian giveaway rules for creators (including the Québec change)
• YouTube giveaway rules: required, prohibited, and recommended