Category: Prizes

How Do I Know if a Sweepstakes is Legitimate?

To determine if a sweepstakes is legitimate, you have to look past the flashy “Win Big!” graphics and examine the underlying infrastructure. Real promotions are governed by strict legal frameworks, while scams rely on psychological pressure and your desire for a shortcut. Here is a checklist to help you verify a sweepstakes in seconds: 1. The “Golden Rule” of Sweeping If you have to pay, you didn’t win. This is

July 13, 2026

Sweepstakes Risk Assessment for Businesses & Consumers Alike

Running a sweepstakes carries significant risks for both the businesses hosting them and the consumers entering them. These risks have become more complex due to stricter regulatory enforcement and the rise of AI-driven fraud. Here is a breakdown of what makes a sweepstakes “risky” from both perspectives. 1. For Businesses: The “Legal Minefield” If a business makes a mistake in the structure or marketing of a sweepstakes, they can face

July 13, 2026

Back to School Promotion Planning

There are a lot of shoppers and eyes online in July, August and September. Perfect timing for running online promotions geared toward back-to-school. And now is the perfect time to start planning! Simple Back to School sweepstakes with great prizes is always popular as there is low or no barrier to entry, yet the reward can be high. A social sweepstakes may work for a campus event. User-generated content contests

June 30, 2026

Regulated Industries and Sweepstakes

Some regulated industries require special disclosures and/or have special legal requirements for running sweepstakes. These regulated industries include alcohol, tobacco, gasoline, dairy, banking, pharmaceuticals, and cause-related marketing. It is absolutely essential to know the laws of these industries, or partner with a promotional marketing firm who works with legal counsel who is familiar with these laws, before undertaking a contest or sweepstakes. Navigating sweepstakes in these sectors requires careful

June 23, 2026

Determining the Odds of Winning

Preparing an Odds Statement is a legal requirement designed to provide transparency and prevent “deceptive advertising.” Because you cannot predict exactly how many people will enter your sweepstakes, the wording of this statement depends on the type of promotion you are running. Here is how to prepare a compliant odds statement. 1. The Standard “Variable” Odds Statement This is the most common format for general random-draw sweepstakes. Since the total

June 8, 2026

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

June 3, 2026

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

June 1, 2026

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

May 21, 2026

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

May 21, 2026

What is a Potential Prize Winner?

In lawful and promotional contexts, a potential prize winner is someone whose entry has been selected in a contest or sweepstakes, but whose eligibility hasn’t been officially confirmed yet. Unlike how many onlookers have speculated on message boards that it seems to be a scammy term, rest assured, it is not (unless being used by a scammer, of course!). Think of it as a “pre-verification” stage. If you get a

May 15, 2026