Category: Sweepstakes

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

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

May 20, 2026

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

May 20, 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

Why You Should Run a Memorial Day Sweepstakes

Memorial Day is, primarily, a solemn occasion to honor the men and women who have made the ultimate sacrifice in service to our country. It is a day of reflection and gratitude. Simultaneously, Memorial Day weekend serves as the unofficial kickoff to summer. It’s a time when families take advantage of the long weekend for quick getaways, backyard barbecues, and quality time together. For brands, this creates a unique dual-natured

May 15, 2026

Best Practices for Running a Pet-Themed Promotion

When running a pet-themed promotion, you are tapping into a deeply emotional space. For many, pets are family members, and the stakes for health and safety are much higher than a standard giveaway. Here are the essential do’s and don’ts for a successful and ethical pet promotion: The Do’s: Focusing on Health and Safety DO prioritize safety standards. Ensure any physical prizes (toys, treats, or gear) meet rigorous safety certifications. Avoid

April 30, 2026