We’ve got some news for you; sweepstakes and contests are not the same. So, if you want to learn the difference, read on.
SWEEPSTAKES
Free Entry
In a sweepstake, participants don’t need to purchase a product or pay for their entry. Sweepstake participants don’t need to perform a talent or skill to qualify either. All they need to do is ensure that they’re legally capable of participating and that they’re entering the promotion willingly. Keep in mind that companies can’t ‘reward’ or ‘punish’ participants for their interaction with the company’s product. This means that a participant who buys a product will have an equal chance of winning as someone who doesn’t.
Chance
Sweepstakes are a game of chance. This means that they have a random drawing that is performed at a set date, on a computer, in front of an audience.
Prize
The incentive a person receives for winning a sweepstake must be clearly stated in the rules.
CONTESTS
Consideration
Contest participants need non-monetary consideration to qualify. Usually, these considerations include artistic or athletic feats, like singing, dancing, painting, acting, or running a race. In a contest, organizers can ask participants to purchase a product or charge an entry fee.
Skill
Winners of a contest are based on the level of skill a participant displays. At the end of the contest, the participants are judged according to how they meet the pre-set criteria. Participants must also be aware of the criteria before they enter the contest. There are no ‘chance’ elements in a skill-based contest.
PRIZE
Like sweepstakes, prizes for contests are governed by laws. The prizes must be indicative of the skill level involved in producing an entry. Awards and prizes of skill-based contests must be prestigious enough for people to invest in entering.
