How to Run a Business Sweepstakes: Complete Guide 2025

Introduction

Sweepstakes are a powerful tool to boost your business activity, engage your community, and create excitement around your brand.

However, organizing a business sweepstakes requires careful attention to legal requirements, which vary by country and state/province.

This guide walks you through the step-by-step process of organizing your business sweepstakes, from understanding legislation to practical implementation.

Organizing a business sweepstakes requires careful attention to legal requirements, which vary by country and state/province.

Legal Framework

United States

Raffle regulations vary by state:

• Most states require specific permits for raffles
• Some states restrict raffles to non-profit organizations
• Online raffles face additional federal restrictions
• Each state has specific prize value thresholds

Key considerations:

1. State-specific permits
   • Apply through state gaming commission
   • Different requirements for commercial vs. charitable raffles
   • Varying application deadlines
2. Prize value limits
   • Different thresholds by state
   • Additional requirements for high-value prizes
   • Special permits for certain prize types

Canada

Provincial regulations apply:

• Each province has its own gaming authority
• Different licenses required based on prize value
• Strict rules for online participation
• Special considerations for cross-provincial raffles

United Kingdom

Governed by the Gambling Act 2005:

• Different requirements for commercial and non-commercial raffles
• Specific rules for workplace and private raffles
• Registration with Gambling Commission may be required
• Strict advertising guidelines

Australia

State-based legislation:

• Permits required in most states
• Different rules for trade promotions
• Special requirements for online raffles
• Specific terms for prize draws

How to Set Up Your Sweepstakes

Entry Methods and Purchase Requirements

To create business momentum while staying legally compliant, you can associate entry with purchase, but remember:

• US law requires a free “No Purchase Necessary” method of entry
• Canadian law requires a skill-testing question for winners
• UK and Australia require clear free entry alternatives

Start by clearly defining your entry mechanism. For example, you can grant an entry for a minimum purchase amount or specific product purchase. To drive sales, you can even offer multiple entries based on purchase amount (e.g., one entry per $20 purchase). However, ensure your free entry method provides equal chances of winning.

Once your mechanism is defined, follow these steps with Boom Boom Shot:

1. Initial Setup and Configuration

Create your account on Boom Boom Shot platform and initiate a new sweepstakes. In the configuration interface, customize:

• Your company logo
• An attractive page background

Regional requirements:

• US: Include “No Purchase Necessary” disclaimer
• Canada: Bilingual interface where required
• UK: Clear distinction between paid and free entry methods

2. Period Settings

Define precisely:

• Entry period (e.g., from the 1st to the 30th of the month)
• Drawing period

Note: Different time zones may apply for multi-state or international sweepstakes.

3. Prize Configuration

In the prize section:

• Add detailed description of each prize
• Upload prize photos
• Include Approximate Retail Value (ARV) – required by US law
• Specify any geographic restrictions

Regional considerations:

• US: Prizes over $600 require IRS Form W-9
• Canada: Include skill-testing question details
• UK: Clear prize descriptions including limitations

4. Official Rules Creation

Official Rules are crucial and legally required. They must include:

• Complete sponsor identification
• Start and end dates
• Entry methods (paid and free)
• Precise prize descriptions
• Winner selection method
• Prize delivery conditions
• Liability clauses and privacy policy
• State-specific disclosures where required

Pay special attention to:

• US: State-specific requirements and exclusions
• Canada: Quebec-specific rules if applicable
• UK: Gambling Commission requirements if relevant

Upload your rules document (e.g., via Google Drive). Then in Boom Boom Shot‘s advanced settings, go to the “Links” tab and paste your rules URL. Ensure the link is active.

5. Entry Form Creation

Customize your form with required fields:

• Personal information (name, email) — included by default
• Purchase date (if applicable)
• Receipt number or product code
• Age verification (crucial for US compliance)
• Additional fields as needed
• Legal checkboxes and rules acceptance are automatically added

Regional requirements:

• US: State residence field
• Canada: Province and skill-testing question consent
• UK: Age verification

Security and Compliance

Fair Drawing Process

Boom Boom Shot ensures a reliable winner selection process through a randomized algorithm. Each participant has equal chances of winning, maintaining the integrity and fairness of your sweepstakes.

Traceability Features

The platform keeps detailed records of your sweepstakes:

• Entry timestamps for reference
• Sweepstakes history available to organizers
• Exportable participant data
• Drawing results documentation

Data Protection

We take data security seriously:

• Secure data handling
• User information protection
• Privacy-focused approach
• Safe data storage practices

Documentation

The system helps you maintain essential records:

• Participant lists
• Drawing reports
• Winner selection records
• Export capabilities for your documentation needs

Platform Security

Our infrastructure prioritizes:

• Secure data transmission
• Protected access
• System reliability
• Regular maintenance

Legal Responsibility

While Boom Boom Shot provides professional tools to help manage your sweepstakes, organizers remain responsible for ensuring their promotions comply with all applicable local laws and regulations. We recommend consulting with legal professionals in your jurisdiction for specific guidance.

Our platform offers features to support your sweepstakes management, but the ultimate responsibility for legal compliance lies with the organizer, as detailed in Article 6 of our Terms of Service.

Organizers remain responsible for ensuring their promotions comply with all applicable local laws and regulations.

Conclusion

While organizing a legal business sweepstakes requires careful attention to regional requirements, it can be a highly effective marketing tool. Using Boom Boom Shot‘s platform, you can ensure a professional, compliant implementation while engaging your audience effectively.

The key to success lies in balancing promotional appeal with strict legal compliance. With proper preparation and the right tools, your raffle can become a powerful growth driver for your business.

Happy sweepstakes! ✨