Understanding U.S. Sweepstakes Rules Around AMOE
“Spend-to-win” promotions are a powerful way to drive sales and customer engagement. Offering participants the chance to win a prize after making a purchase—whether through a spin wheel, scratch card, or random draw—can be highly effective. But if you’re running this kind of promotion in the United States, there’s a legal requirement you can’t afford to overlook: the free Alternative Method of Entry (AMOE).
In this post, we’ll explain what AMOE is, why it’s required, and how to ensure your spend-to-win promotions are fully compliant. Whether you’re new to sweepstakes marketing or simply need a refresher, this guide will help you avoid common mistakes and run promotions with confidence.
What Is AMOE, and Why Is It Required?
At the heart of U.S. sweepstakes law is a simple principle: businesses cannot operate an illegal lottery. A lottery is defined by the presence of three elements:
- Prize – something of value is awarded
- Chance – the outcome is determined at random
- Consideration – the participant gives something of value to enter (typically a purchase or payment)
For a promotion to be legal, one of these three elements must be removed. In most marketing campaigns, the way to remove “consideration” is by offering a free and equal alternative method of entry—known as the AMOE.
The AMOE is what transforms a spend-to-win sweepstakes into a legal, consumer-friendly promotion.
Why Does AMOE Matter?
There are three key reasons AMOE is required:
- It removes the purchase requirement. This keeps the promotion from being classified as an illegal lottery under federal or state law.
- It ensures fairness. Consumers who do not want to make a purchase must still be given an equal chance to participate.
- It protects your brand. Failure to include an AMOE can result in complaints, fines, or regulatory action, and in some cases, the forced cancellation of the promotion.
What Does a Compliant AMOE Look Like?
The AMOE isn’t just a checkbox—it must meet specific standards to satisfy legal requirements.
- Equal access: The free entry route must be as easy and accessible as the purchase route. It can be an online form, a mail-in postcard, or another low-friction method.
- Equal odds: Free entrants must have the same chance of winning as those who enter by spending money.
- Clear disclosure: The AMOE must be prominently displayed in promotional materials and included in the official rules.
- Available throughout the promotion: Free entry must be open for the same duration as the paid route. It’s not enough to offer it for a few days or in a limited window.
Real-World Example: Coca-Cola
Coca-Cola’s “Share a Coke” sweepstakes is a textbook example of a compliant campaign. Customers could earn entries by purchasing qualifying products, but they could also enter for free via a dedicated online form or by mail. Both paths gave participants equal chances to win, and the rules were clear and easy to find.
What Happens Without an AMOE?
Failing to include an AMOE can lead to serious consequences. In one case, a local bakery ran a promotion where customers who spent $10 were entered to win a vacation. There was no free entry option. The state’s attorney general stepped in, citing the campaign as an illegal lottery. The promotion was shut down, and the business was fined.
This kind of enforcement action is not limited to large corporations. Regulators frequently investigate promotions run by small and mid-sized businesses, especially if consumers file complaints or if the promotion is publicly advertised.
Summary of AMOE Requirements
| Requirement | What It Means | Why It Matters |
| Free entry option | Consumers can enter without making a purchase | Eliminates “consideration” from the equation |
| Equal odds | Free and paid entrants have identical chances | Ensures fairness and legal compliance |
| Clear disclosures | AMOE method and timing must be stated upfront | Avoids misleading consumers |
| Full duration access | Free entry must be open the entire promotion | Prevents unfair time-based exclusion |
What Needs to Be in Your Official Rules
All consumer sweepstakes—especially those tied to purchases—should include a comprehensive set of official rules. These must outline:
- That no purchase is necessary
- How to enter, including the AMOE
- Promotion dates and deadlines
- Eligibility criteria (e.g. age and location)
- Prize details and odds of winning
- Selection and notification process
- Any geographic exclusions (e.g. “Void where prohibited”)
Some states, like New York, Florida, and Rhode Island, also require registration and bonding for high-value sweepstakes. It’s essential to check local laws, especially if your total prize pool exceeds $5,000.
What the Experts Say
“If a promotion requires a purchase and involves chance, you must offer a free and equal method of entry. That free entry has to provide the same access to the prize pool, with no delays, and must be clearly disclosed from the start. It’s not just a best practice, it’s what the law requires.”
Allison Fitzpatrick, Partner, Davis+Gilbert LLP
Final Thoughts for Marketers
If you’re planning a spend-to-win campaign, AMOE compliance isn’t optional—it’s the foundation of a legally sound sweepstakes. The good news is that it’s entirely possible to create promotions that are both exciting and fully compliant. Brands like Coca-Cola, PepsiCo, and McDonald’s do it all the time.
For smaller businesses and marketing teams, the key is to plan ahead, write clear rules, and offer an accessible, no-cost entry route. If you’re unsure whether your campaign qualifies or need help setting up the legal framework, consult with a legal advisor who specializes in sweepstakes law.
How BeeLiked Helps
At BeeLiked, we help brands create engaging, gamified promotions that drive real business results, without risking legal missteps. Our platform supports fully compliant consumer campaigns across the U.S., with features designed to manage free entries, automate prize delivery, and ensure all federal and state-level rules are followed.
From digital scratch cards and spin wheels to more advanced mechanics, we can tailor your promotion to meet both your marketing goals and your compliance requirements. And with our expert network of legal partners, you can launch your next campaign with confidence.
If you’re planning a spend-to-win promotion and want to get it right, get in touch, we’ll help you build something that’s fun, effective, and fully legal.
