Q: Can a giveaway have a free entry to all but extra entries given to those who pay for additional entries?
I stream on Twitch which is a platform where people can sub and donate to a streamer. I would like to run a giveaway for Christmas. To incentivize subscriptions, I wanted to give extra entries to those who subscribe to my channel. I know giveaways have to have a free method of entry. If I allowed all to have a free entry but allowed subscribers to get more entries, or allowed people who donated or gifted subscriptions to get more entries, is that still legal considering I’ve given a method of free entry to all who come to my stream?
In Colorado, as in many states, the rules governing giveaways (often classified as "sweepstakes") can be complex, particularly when involving both free and paid entries. The key legal consideration is ensuring that your giveaway does not become classified as a lottery, which typically involves a combination of payment, chance, and a prize. Lotteries are generally illegal unless run by the state.
Providing additional entries for payment while also offering a free method of entry is a common practice. However, the free entry method should be given equal prominence and accessibility as the paid method. The odds of winning for paid and free entries do not necessarily have to be the same, but this should be clearly disclosed in the rules of your giveaway.
Make sure to have clear, accessible, and comprehensive rules for your giveaway that outline how entries are obtained, the process of selection for the winner, and any terms and conditions. These rules should comply with Twitch’s policies and Colorado law.
Given the legal complexities involved in conducting sweepstakes, it might be beneficial to consult with a legal professional to ensure compliance with all relevant laws and regulations. This helps protect you from potential legal issues and ensures a fair process for participants.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.