BeeLegal Series

Loyalty Stamp Cards vs. Sweepstakes: What’s the Legal Difference?

Walk into a coffee shop or cinema, and you’ll probably see it: the humble stamp card. Buy 10 coffees, get your 11th free. It’s simple, reliable, and everyone understands how it works.

But when brands start creating digital versions of these promotions or mixing loyalty mechanics with gamification, it’s important to know where the legal boundaries lie. Not all reward programs are treated equally. Some require legal disclosures, alternative entry routes, and compliance checks. Others don’t.

In this article, we’ll break down the key difference between loyalty stamp cards and sweepstakes, explain why one requires a free Alternate Method of Entry (AMOE) and the other doesn’t, and show how BeeLiked helps brands build smart, secure, and legal loyalty programs.


What Is a Loyalty Stamp Card?

A loyalty stamp card is a straightforward rewards system. Each time a customer makes a qualifying purchase or action, they earn a stamp, point, or tick. Once they reach a set total—usually ten—they unlock a guaranteed reward.

The important detail here is certainty:

  • Guaranteed reward: Everyone who fills the card gets the same reward
  • No randomness: There’s no spin, no draw, no surprise
  • Transparent rules: Every step is clear, repeatable, and based on effort

It doesn’t matter who you are or when you join. If you complete the required actions, you receive the same benefit. That makes it legally different from a sweepstakes.


What Is a Sweepstakes?

A sweepstakes is a prize promotion where the winner is chosen at random. Unlike a loyalty card, a sweepstakes always includes chance.

Here’s how the two compare:

ElementLoyalty Stamp CardSweepstakes
PrizeYes (guaranteed)Yes (randomized)
ChanceNoYes
ConsiderationYes (purchase/action)Often yes, but must allow free AMOE

In the U.S. and many other countries, if a promotion includes chance, a prize, and a purchase requirement, it risks being treated as a lottery. To stay compliant, sweepstakes must include a free and equal entry path—the AMOE.


Why Loyalty Stamp Cards Don’t Require an AMOE

Loyalty cards are based on effort, not luck. As long as every participant earns the same reward by completing the same steps, the law doesn’t treat it as a game of chance.

  • No AMOE required: There’s no need for a free entry route because the promotion isn’t based on luck
  • No gambling regulation: It’s not a lottery or sweepstakes
  • No special disclosures needed: There’s no drawing or randomized outcome to disclose

This means loyalty cards offer a much simpler path for marketers. You don’t need to worry about structuring odds, prize pools, or “No Purchase Necessary” disclosures—because there’s no chance involved.

What the Experts Say

“If a customer receives a reward every time they complete a set action, like making ten purchases, it’s not a sweepstakes. There’s no element of chance. These loyalty programs are treated like contract-based offers, not games of chance, and they don’t require an AMOE.”

Allison Fitzpatrick, Partner, Davis+Gilbert LLP

Real-World Examples

These promotions are everywhere and they don’t require legal disclaimers or complex entry logic.

  • Starbucks: Offers “Stars” through its app. After collecting enough, customers can redeem for free drinks. No luck involved.
  • AMC Theatres: AMC Stubs members earn points per ticket. After reaching a threshold, they get discounts or free items.
  • Local cafés and retailers: Many still use punch cards. Buy 9, get 1 free—no rules, no randomness, no need for legal review.
  • Pret A Manger (UK): Offers a subscription and digital loyalty perks that deliver guaranteed benefits after repeated visits.

In all of these, every qualifying participant receives the same benefit. There’s no drawing or random prize pool.

Why Go Digital With Loyalty Stamp Cards?

Paper stamp cards work, but they’re limited. Digital loyalty programs offer a better experience for both the customer and the brand.

For customers:

  • No lost cards
  • Instant reward tracking
  • Easier redemption

For brands:

  • Track engagement automatically
  • Personalize offers and reward tiers
  • Reduce fraud and manage redemption at scale
  • Integrate with CRM or point-of-sale tools

How BeeLiked Helps You Do It Right

BeeLiked gives you everything you need to launch and scale a digital loyalty stamp card that works across channels. Our platform supports:

  • Customizable digital stamp card campaigns
  • Guaranteed rewards after X purchases or actions
  • Secure entry tracking with customer IDs or QR codes
  • Flexible reward types, from discounts to experiences
  • Seamless integration with your CRM or e-commerce system

We also help you stay on the right side of promotion law. Since loyalty stamp programs don’t involve chance, you don’t need to worry about sweepstakes regulations, AMOE, or prize disclosures. You can focus on driving customer engagement—without the legal complexity.

Conclusion

Loyalty stamp cards and sweepstakes are often confused, but they serve different goals and follow very different rules.

  • Stamp cards reward customers through effort and repeat behavior. There’s no luck, so there’s no need for a free entry option.
  • Sweepstakes involve chance, and if entry is tied to a purchase, they require an AMOE to remain compliant.

For digital marketers, understanding the distinction makes it easier to choose the right approach for your campaign. If your goal is to reward loyalty and keep things simple, a digital stamp card is a smart move.

And if you want to build one that looks great, runs smoothly, and scales with your business, BeeLiked is here to help.

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