Free Sweepstakes Are Different Than Lotteries Because of the ‘No Purchase Necessary’ Rule

North American laws are quite strict about lotteries. For the most part, private corporations cannot set up a lottery businesses. Most lotteries are run by government corporations. There are a few rare exceptions, however, like hospital lotteries in Canada; hospital lotteries are permitted because they’re for the greater good, but they are strictly regulated. So, what could private businesses do? They could offer free sweepstakes. But those free sweepstakes cannot resemble lotteries. Mainly, they must adhere to the ‘no purchase necessary’ rule.

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