In this series, we break down the legal essentials for running promotions, sweepstakes, and gamified If you’ve ever seen “No Purchase Necessary” in the fine print of a sweepstakes and wondered what it really means, you’re not alone. That phrase isn’t just a formality, it’s backed by a set of legal rules that require brands to offer a Free Alternative Method of Entry (AMOE) for any chance-based promotion tied to a purchase.

While federal law provides a broad framework, each U.S. state has its own interpretation. In some states, a stamped postcard is still fine. Others, like New York, now expect online, instant access for digital promotions. This guide breaks down what AMOE means, what counts as consideration, and how to stay compliant no matter where your sweepstakes runs.

What Makes a Sweepstakes Legal?

Under U.S. law, a sweepstakes becomes an illegal lottery if it includes all three of the following:

• Prize – something of value is awarded
  
• Chance – the winner is selected at random
  
• Consideration – the participant provides something of value to enter
  

To remain legal, most sweepstakes remove the consideration element by offering a completely free way to enter. This is the role of the AMOE. It protects both the consumer and the brand by ensuring no one is required to make a purchase, or put in significant time or effort to participate.

Mail-In Entries: Are They Still Allowed?

Mail-in AMOE, typically a postcard or letter with basic info, is still accepted in most states. The cost of a stamp and envelope is considered incidental and not a barrier to entry.

However, things are changing, especially in New York. Under recent updates to promotion law, mail-only AMOE is no longer sufficient for online or digital-first sweepstakes. If your campaign runs online or is advertised through digital channels, you must provide an online AMOE that is free, accessible, and immediate.

Mail-in entries are still legal in other states, but the process must be simple. If you’re asking people to send multiple envelopes, use certified mail, or follow complicated instructions, that could cross the line into “too much consideration.”

Best practice: Keep mail-in entry to one card, one stamp, and straightforward instructions. If your campaign is promoted online, offer a digital AMOE alongside the mail-in option.

What About Surveys, Social Actions, or Referrals?

Whether an entry step counts as consideration often comes down to effort. A few quick points:

• Short surveys are generally fine. Asking for a name, email, and one or two questions won’t trigger concern.
  
• Lengthy surveys, especially those that take more than 5 minutes or require extensive personal information, may count as non-monetary consideration.
  
• Social media actions like “follow to enter” or “share to qualify” can raise red flags, particularly if they are tied to a paid product or service.
  
• Referrals or app downloads should never be required to access a free entry path.
  

The safest approach is to make your AMOE quick and direct. It should never feel like work, and it should never create friction for the user.

What the Experts Say

“The law doesn’t define consideration just by money. It also looks at time and effort. If your free entry path requires substantial time and effort such as a long survey, it may no longer be considered a true alternative. The safest approach is to keep free entry fast, easy, and equal.”

Allison Fitzpatrick, Partner, Davis+Gilbert LLP

Key States and How Their Rules Differ

Each state has its own approach to AMOE and sweepstakes compliance. Here are a few highlights from the ones that most often come up in national campaigns:

New York

• Bonding and registration are required for promotions with prizes over $5,000.
  
• Digital AMOE is now essential for online promotions. Mail-only AMOE is no longer considered sufficient in most cases.
  
• The AMOE must be easy to access, free, and offer the same odds and timing as the purchase route.
  

Florida

• Also requires registration and bonding for promotions with cumulative prizes over $5,000.
  
• All entry methods must offer equal access, and deadlines must be strictly followed.
  
• Mail-in entries are accepted, but the AMOE must be clearly disclosed.
  

California

• Focuses heavily on consumer protection and transparency.
  
• The AMOE must be presented with equal dignity as the paid method. That means same timing, same odds, and no hidden barriers.
  
• Deceptive or overly complex entry methods are not allowed.
  

Texas

• No bonding required, but fairness and clarity are key.
  
• AMOE is required whenever chance and purchase are involved.
  
• Digital AMOE is preferred but not yet mandatory.
  

Rhode Island

• Requires registration for retail sweepstakes where prizes exceed $500.
  
• No requirement for digital AMOE, but mail-in entries must be straightforward and accessible.
  

Best Practices for AMOE Compliance

To stay on the safe side—especially if you’re promoting nationwide—follow these best practices:

• Offer an online AMOE for any sweepstakes promoted on digital platforms.
  
• If using a mail-in option, keep it simple: one card, one stamp, and minimal information.
  
• Do not ask users to complete tasks like app downloads, video views, or social follows in order to access free entry.
  
• Make sure AMOE entries receive the same odds and prize pool access as purchase-based entries.
  
• Keep the AMOE open for the full duration of the promotion, not just a short window.
  
• Clearly state: “No purchase necessary. Free entry available.”
  
• Be mindful of state-specific registration or reporting rules, especially in New York, Florida, and Rhode Island.
  

Sample State Comparison

State	Mail-in AMOE Allowed	Online AMOE Required?	Registration Threshold	Notes
New York	Yes	Yes, for online promos	Required if prizes exceed $5,000	Certified winner reporting also required
Florida	Yes	Recommended	Required if prizes exceed $5,000	Disclosure and timeline compliance are strictly enforced
California	Yes	Strongly encouraged	No formal threshold	High focus on fairness and transparency
Texas	Yes	Preferred	No	AMOE must eliminate all purchase-based barriers
Rhode Island	Yes	Not required	Required if prizes exceed $500 (retail only)	Applies to in-store or point-of-sale campaigns

How BeeLiked Helps You Stay Compliant While Keeping Promotions Fun

At BeeLiked, we help brands design and deliver gamified promotions that excite participants and support compliance with U.S. and international laws. Our platform gives you the tools to:

• Offer a fast, accessible online AMOE
  
• Ensure equal access and fair odds for all entry types
  
• Automate entry tracking, prize delivery, and AMOE visibility
  
• Customize entry experiences based on geography and user eligibility
  
• Monitor and manage AMOE usage to prevent abuse
  

Whether you’re building a campaign for customer acquisition or employee recognition, BeeLiked supports a wide range of interactive formats—including spin wheels, slot machines, scratch-offs, claw grabbers, and more. All game types can be customized to your brand and configured to support the entry conditions you need.

While we don’t offer legal advice, we provide the structure and features to help ensure your promotion meets AMOE requirements and avoids compliance risks. With BeeLiked, you can launch campaigns that are creative, impactful, and designed with best practices built in.

Ready to run a sweepstakes that engages and complies? Get in touch—we’d love to help.