Category: Administration & Compliance

The Difference Between Sweepstakes and Contests

Katie Blaney, one of Marden-Kane’s Account Supervisors, explains the difference between sweepstakes and contests. If your company wants more information on either, give us a call at 516-365-3999. The words “promotion,” “sweepstakes,” “contest” and “giveaways” are sometimes used interchangeably. However, there are a few very distinct differences between sweepstakes and contests. To start, the word “promotion” can be used to describe many different marketing tactics including Sweepstakes, Contests, Instant

May 2, 2025 3 Comments

Sweepstakes Winners: W-9’s and 1099’s

SVP, Fae Savignano contributed this informative post on what sponsors need to know about filing and processing winner W-9’s and 1099’s for their promotions. Sponsors of Promotion Games of Chance offering and awarding prizes valued at $600 or more should be aware that they are responsible to obtain a signed, legible copy of an IRS form W-9 from every winner that they issue a prize to. This means that

April 30, 2025 42 Comments

What is “Consideration” in a Sweepstakes?

Account Supervisor Cheryl Thornton contributed this post on consideration. Consideration has many definitions, but when it’s included in a Game of Chance such as a Sweepstakes, the promotion could be violating federal, state and local laws and regulations governing Sweepstakes and Contests. When a promotion combines the elements of (1) prize, (2) chance and (3) consideration, it is a Lottery. All lotteries, except those which are state operated are

April 29, 2025 36 Comments

The Facts About Prizes Revealed

Fae Savignano, SVP, contributed this post about prizes. Research shows that more than half of all adults in the U.S. enter at least one sweepstakes every year, and this amount increases exponentially. Promoting Sweepstakes and Contests are an excellent way to engage and retain your customers and a properly structured prize offering will definitely enhance your endeavor. Let’s face it, the chance of winning an expensive and alluring prize

April 26, 2025 No Comments

Post-Pandemic Prize Considerations

Things are starting to get back to “normal” as vaccination rates rise and offices reopen at full capacity. Businesses want to get “back to normal,” but what will that look like? And what will your customers’ level of tolerance be for a post-pandemic prize that is awarded as part of a sweepstakes or contest? The types of prizes most coveted by winners may not have changed, but the form or

May 13, 2021 No Comments

5 Ways to Run a Flawless Beauty Pageant

Beauty lies in the eye of the beholder, making any kind of beauty pageant subjective. It then follows that if you are having a beauty pageant, you must look at it as a contest, and in most parts of the world that means you will also need to have Official Rules for your contest, and predetermined criteria within those rules. If you want to run a beauty pageant here are

May 6, 2021 No Comments

Run a Legal Pay to Play Sweepstakes

The newest promotion trend is to run a pay to play sweepstakes where you can earn entries with purchase. For many e-commerce providers, a sweepstakes with the chance at winning a high value prize can be used to boost sales or donations. Every dollar spent can earn an entry into the sweepstakes, and bonus entries can be earned for purchasing certain products or making a purchase at a certain time.

March 26, 2021 4 Comments

Put That Sweepstakes Data to Work

The primary reason our clients say they want to run a sweepstakes is to be able to put that sweepstakes data to work to find new potential clients and increase sales. A sweepstakes is a terrific way to achieve those goals! However, if you do not make sure you follow data privacy laws and consumer protection guidance, then that data you collect as part of a sweepstakes campaign can not

February 12, 2021 No Comments

COVID-19 Relief and CCV Programs

Throughout 2020 and into 2021, Marden-Kane has helped clients and non-profits work together for COVID-19 relief in their communities with commercial co-venture programs, also called “CCV Programs.” A CCV program is when a business partners with a non-profit organization to make donations of money, goods, events, products or services to benefit the non-profit’s cause. This type of cause-related marketing is regulated in many U.S. states, and may require that the

January 14, 2021 No Comments

Federal Lottery Laws Explained

According to Federal Lottery Laws, it is illegal to operate a lottery through the mail or over the telephone. Let’s begin by explaining what a lottery is…A lottery is generally defined as a promotion in which all three of the following elements are present: prize, chance and consideration (otherwise known as, the “Standard Lottery Rule”). Most states follow this Standard Lottery Rule; and all 50 states and the District of

July 24, 2020 No Comments