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Federal & State Lottery Laws Explained
According to Federal Lottery Laws, it is illegal to operate a lottery through the mail or over the telephone. The “Standard Lottery Rule” is a legal baseline that defines an illegal lottery. The 3 Elements of an Illegal Lottery – A sweepstakes crosses the line into an illegal lottery if it contains all three of the following: Prize: Something of value is offered. Chance: Winners are chosen randomly. Consideration: Participants
10 Hot Summer Prize Ideas
The weather is getting warmer, which means everyone is starting to make their summer plans! Everyone deserves an escape, something fun to do, or a way to simply cool down. When summer is on everyone’s mind, now is the time to start planning your summer sweepstakes with Marden-Kane. Here are our top 10 picks for the hottest prizes this summer: 1. The Ultimate Family Fun Vacation Who doesn’t love a
How the High Cost of Gas Affects Your Promotional Offers
High gas prices have driven a shift in consumer behavior and marketing tactics. Americans are driving less and changing vacation plans, leading companies to reallocate marketing budgets toward digital giveaways. Sweepstakes now increasingly focus on offering “free” gas money and food to attract cash-strapped consumers. The current combination of higher fuel costs, inflation, and restricted traffic in the Strait of Hormuz has pushed the national average for regular gasoline to
Sweepstakes Prizes are Considered Income by the IRS
In the eyes of the IRS, a sweepstakes prize is not a “gift,” it is income. Under the Internal Revenue Code, specifically Section 61, “all income from whatever source derived” is taxable unless a specific exception exists. Because sweepstakes winnings are considered “other income” (similar to a bonus or a second job), they are subject to the same federal and state income tax rates as your regular salary. Here is
How to Avoid Deceptive Advertising
In the context of sweepstakes, deceptive advertising occurs when a promotion uses misleading statements, omissions, or visual trickery to give a participant a false impression of their odds, the prize value, or the requirements to win. The Federal Trade Commission (FTC) and state Attorneys General monitor these closely. If a “reasonable consumer” would be misled by the advertisement, it is considered deceptive. Common Forms of Deceptive Advertising 1. The “False
What is Equal Dignity in Sweepstakes?
In the world of sweepstakes, Equal Dignity (also known as the “Equal Dignity Rule”) is a legal principle ensuring that people who enter for free have the same chance of winning as those who pay. Because “paying to enter” a game of chance constitutes a lottery—which is illegal for private businesses to run—companies must provide an Alternative Method of Entry (AMOE). The Equal Dignity Rule dictates that this free entry