Although not all sweepstakes appear as such, for every true promotional contests (run fairly), there will always be those that use sweepstakes as a way to mask aggressive monetization schemes; confuse consumers about their chances of winning; or in extreme cases, obtain consumer’s private information and payment details without an actual prize on the back-end. The reality is that people are losing real money. The FTC receives over tens of thousands of complaints each year regarding sweepstakes and lottery scams, which have resulted in reported losses totaling hundreds of millions of dollars. While most victims do not appear to be naive, they are typically unaware of what legitimate promotional contests truly resemble. Once you become familiar with legitimate promotional contest markers, these types of scams are very easy to identify. Sweeps Pulse has compiled a list of steps to check before you sign up at a sweepstakes casino.
Start With the Legal Foundation
Sweepstakes Casino Platforms are built upon a Legal Structure. The Legal Structure of a Sweepstakes Platform, provides the most important information for a Consumer.
In order to operate a valid Promotional Sweepstakes in the United States, there are Three Core Requirements:
- Free Entry – Must be able to Enter the Promotion without Spending Money. Also, Free Entry must have Equal Odds of Winning as Paid Entry.
- Random Selection – Winners must be selected at Random (By Chance) and not through Merit or Skill.
- A Prize Must be Awarded – There must be a Prize that exists and will be awarded to the Qualifying Winner(s).
As long as these Three Elements are clear and in place, the Offer is being operated with-in the Guidelines of Established Law regarding Promotional Contests.
If any one of the Three Elements are Hidden, Altered, Missing, etc., then Problems can arise.
Red Flags That Should Stop You Cold
When evaluating a sweepstakes offer, the best way is to find out what is being left out instead of looking at what is highlighted. Sweeps operators who operate ethically have nothing to hide. Those who do mislead their customers use the tactic of omission.
Hard Red Flags (If these are present – Walk Away Immediately):
- You are required to pay an additional fee to obtain your sweepstakes winnings or release them to the winner(s)
- You receive notification that you have won a sweepstakes or contest that you did not enter
- The offer creates false urgency – “you must act in 24 hours or forfeit”
- The contact information is a post office box, a foreign address or non-existent street address
- The company name is vague, was recently registered, and/or cannot be verified independently
- You are requested to give your Social Security Number, Bank Account Information, or Wire Transfer Information in order to obtain your sweepstakes winnings
Side-by-Side Comparison: Legitimate vs. Misleading Offers
| Signal | Legitimate Sweepstakes | Misleading Offer |
| No purchase necessary | Clearly stated, genuinely accessible | Inactive (not actually present) |
| Prize disclosure | Specific values, odds, and redemption terms | Vaguely-stated “up to” values with no information about the odds |
| Terms & conditions | Full, findable, plain-language | Missing entirely, partially, or hidden |
| Contact information | Physical address, working support channels | No physical address or contact information. P.O. Box, foreign address etc. |
| Prize claim process | Free, no fees, no wire transfers | Winnings are only available for a fee to “release” |
The Fine Print Is the Product
One of the primary characteristics of false advertising sweepstakes is that legitimate details about the sweepstakes (the fine print) are written to undermine the actual claim being made by the ad (the headline).
Example: Headline, “Win $5,000 — Enter Now for Free!”
Fine Print, “The $5,000 Prize Value is the Maximum Possible Across All Prizes. Odds of Winning Top Prize are 1 in 2,500,000. Your ‘Free Entry’ Must Be Requested via Mail; Processing Time May Take Up to 12 Weeks.”
Technically Legal. Clearly Deceptive.
All legitimate sweepstakes promoters write terms that support their headline claims. If you see a sweepstakes where the Terms tell a meaningfully different story than the advertising, that is your answer.
To always Find Sweepstakes that are Legitimate:
- Fine print should state actual odds of winning. The fine print should also provide a ratio or percentage of odds.
- Fine print should provide total number of prizes at each tier.
- Fine print should provide redemption requirements. what minimum balances are required? How do you verify identity? How long does it take for you to redeem?
How to Verify Before You Engage
Before you register for any sweepstakes particularly those requiring account set-up, credit card information, etc. a quick verification check of your potential sweepstakes sponsor should take you no more than 5 minutes. Here’s what I do:
- Enter the company name into a search engine and include “Reviews” and “Complaints”
- Search the company on the Better Business Bureau (BBB) for past complaints
- Use a WHOIS look-up tool to find out when the company’s domain was created. A recent domain registration is a big red flag!
- Find if the site is using https (look for the padlock icon in the top left corner of your browser)
- Use your State’s business registration records to confirm where the company is registered as a business
- Search the Federal Trade Commission (FTC) fraud database at reportfraud.ftc.gov for the company’s name. If they’re a repeat offender, they’ll probably show up.
If the sweepstakes you found can’t pass this 5 minute test, then it wasn’t made to last!
The Bottom Line
Sweepstakes platforms that are honest about how they operate and build a legitimate business based on clear rules have nothing to hide. Sweepstakes sponsors who want you to see their terms and conditions are trying to earn your trust. Sweepstakes sponsors who want you to rush through their process are trying to avoid being vetted.
