{"id":192,"date":"2019-07-08T19:33:41","date_gmt":"2019-07-08T22:33:41","guid":{"rendered":"https:\/\/www.sweeppeasweeps.com\/official-rules-center\/?p=192"},"modified":"2022-11-21T20:25:23","modified_gmt":"2022-11-21T23:25:23","slug":"sweepstakes-vs-contests-whats-the-difference","status":"publish","type":"post","link":"https:\/\/www.sweeppeasweeps.com\/official-rules-center\/sweepstakes-vs-contests-whats-the-difference\/","title":{"rendered":"Sweepstakes vs. Contests: What’s the Difference?"},"content":{"rendered":"
\n
\"Sweepstakes<\/figure><\/div>\n\n\n

Many use the words “sweepstakes” and “contest” interchangeably, but there\u2019s a big difference between the two. The one you choose changes how your sweepstakes (or contest) is managed, how it\u2019s structured, how users will interact with it, which contest rules<\/a> or sweepstakes rules<\/a> to use and how winners are selected.<\/p>\n\n\n\n

Read on to learn the differences. It\u2019ll help\nyou understand what type of promotion will work best for you.<\/p>\n\n\n\n

Game\nof Skill or Chance?<\/h3>\n\n\n\n

The first thing you should know is that there\nare 3 items that legally help define whether a promotion is a sweepstakes or contest:\n<\/p>\n\n\n\n

  1. A prize<\/li>
  2. The element of chance<\/li>
  3. Consideration (something of value\nor effort) <\/li><\/ol>\n\n\n\n

    A legal sweepstakes or contest should have\nonly 2 of the 3 items above. If your promotion has all 3, you might be running an\nillegal lottery. <\/p>\n\n\n\n

    Which 2 of the 3 you have will dictate whether\nit\u2019s a game of chance (sweepstakes) or a game of skill (contest). <\/p>\n\n\n\n

    Consideration <\/h3>\n\n\n\n

    What\u2019s \u201cconsideration\u201d in this context? It\u2019s\nnot so much about \u201ccareful thought\u201d as it is about a \u201cpayment or reward\u201d in\nreturn for a chance to play the game. So, for example, a fee to enter your sweepstakes\n(which can be illegal, see above) is consideration. Even time or effort (like writing\nan essay) can be consideration. <\/p>\n\n\n\n

    This is important for contests, which ask that\nentrants put forth effort or something of value in order to be considered. You\nmight ask participants to shoot a photo, design a craft, write an essay or compete\nin a physical challenge. These are all non-monetary means of consideration. <\/p>\n\n\n\n

    Consideration is allowed in contests<\/strong>, although it may be restricted in some states. Couple that\nconsideration with a prize and you have the 2 elements needed for a legal contest.\nThe element of chance or luck must not be included as all entrants must be\njudged based on a defined set of criteria (i.e. creativity or originality) and\nchosen based on skill. <\/p>\n\n\n\n

    Can a sweepstakes have consideration,\nwhether it\u2019s monetary or effort\/time?<\/strong> No. This is why\nyou see \u201cNo purchase necessary to enter\u201d in sweepstakes rules<\/a>. While there are\nsweepstakes that offer an entry with a product purchase, those promotions\nalways offer a free entry method (mailing in a postcard or sending an email,\netc.) as well.  <\/p>\n\n\n\n

    The Element of Chance<\/h3>\n\n\n\n

    In game of luck like a sweepstakes<\/strong>, the element of chance is necessary. Here, winners are simply selected\nrandomly from all entrants. No entrant has an advantage over another when it\ncomes to their chances of being chosen as a winner. As a result, entrants can\nonly increase their chances of winning by entering multiple times if it\u2019s allowed\nby the brand.<\/p>\n\n\n\n

    Contests can\u2019t include luck or “chance”\nelements<\/strong> to ensure that the promotion will not be\ndeemed an illegal lottery. Every entry must be judged equally based on the defined\ncriteria. <\/p>\n\n\n\n

    Be careful of inadvertently adding luck or\nchance to your contest. Are you allowing fans to vote for winners? This might\nbe considered chance if it\u2019s the only method of picking a winner. Allow fans to\nvote for finalists instead, with the finalists then judged by judges who choose\nthe winner. <\/p>\n\n\n\n

    Contests Require A Free Method of Entry<\/h3>\n\n\n\n

    Depending on the state in which you offer your contest, you may be allowed to require entrants to purchase your product or even pay an entry fee as long as you provide a free method of entry. The same as a sweepstakes must always have a free method of entry, otherwise it will be considered as an illegal lottery.<\/p>\n\n\n\n

    Contest Management Time<\/h3>\n\n\n\n

    Since all contest entries must be judged before a winner can be selected, a contest takes significantly more time to manage than a sweepstakes. With a sweepstakes, winners can be chosen at random using software<\/a> which will allow you to take a hands-off approach to winner selection. For this reason, contest management can be a bit more onerous, depending on setup.<\/p>\n\n\n\n

    Why Use a Sweepstakes Versus a\nContest<\/h3>\n\n\n\n

    A major difference between a contest and a\nsweepstakes is that contests are mostly used to get your customers to create\ncontent that can be used in various ways. You can use it to market your brand,\nfor example, or simply to gain insights into customer behavior. A contest also\nhelps you identify those customers who are brand loyalists. <\/p>\n\n\n\n

    More importantly, a contest is about\nconnecting with your customers on a deeper level. As a result, you’ll be able\nto reward your customers for putting in the effort to engage with your\nbrand.   <\/p>\n\n\n\n

    On the other hand, sweepstakes are ideal for brand awareness. Big brands often use it to stay \u201ctop of mind,\u201d while others use it to increase awareness and start a relationship with potential customers. <\/p>\n\n\n\n

    SweeppeaSweeps<\/a> can help create sweepstakes rules<\/a> or contest rules<\/a> and administer<\/a> the promotion for you. <\/p>\n","protected":false},"excerpt":{"rendered":"

    Many use the words “sweepstakes” and “contest” interchangeably, but there\u2019s a big difference between the two. The one you choose…<\/p>\n","protected":false},"author":1,"featured_media":244,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[57,53],"tags":[52,51,50],"yoast_head":"\nSweepstakes vs. Contests: What's the Difference? - Official Rules Center<\/title>\n<meta name=\"description\" content=\"The one you choose changes how your sweepstakes (or contest) is managed, how it\u2019s structured, how users will interact with it, which contest rules or sweepstakes rules to use and how winners are selected.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sweeppeasweeps.com\/official-rules-center\/sweepstakes-vs-contests-whats-the-difference\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sweepstakes vs. Contests: What's the Difference? 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