Do Small Giveaways Need Official Rules?
Yes! They absolutely do.
It’s a common misconception that a small giveaway run at an event or a simple online sweepstakes with smaller prizes doesn’t need Official Rules. But, the truth of the matter is that the law doesn’t discriminate based upon size. And, one of the requirements for running a game of chance are posting the material terms (aka, the Official Rules).
Here are a few other things you need to consider for your giveaway regardless of size:
BONDING & REGISTRATION
If you’re game of chance has a total prize pool over $5,000 and it’s opened and advertised to residents of NY, FL & RI residents you may need to bond & register. Yes, even if your promotion only runs for an hour.
If you are running a small, in-event sweepstakes (like at a trade show), make sure you are aware of the costs to enter the trade show and access your giveaway. If the entrant had to purchase a ticket to enter the trade show (and your giveaway is completely separate) you should be good to go as long as your only advertising inside the event. However, if you advertise the giveaway on social media or outside the venue, you’re gonna need a free method of entry.
If it sounds tricky, it’s because it is. We’ll walk you through it.
DON'T FORGET YOUR LEGAL DISCLAIMERS!
When we draft your official rules, we also provide legal disclaimers and the rules for posting them. Don’t forget to post them! Legal disclaimers are the minimum material terms required to share with consumers before they take action (i.e. enter your giveaway).
Ask us about our custom pricing solutions for official rules! We’re here to help with the legal stuff and your budget.