Podcast Promotions: Contests, Sweepstakes, & Illegal Lotteries

02/13/23 • 10 min

6 Listeners

As a podcaster, you want to engage your audience and keep them coming back for more. Running promotions is a great way to do this, but it’s important to know the difference between a contest, sweepstakes, and an illegal lottery. You don't want to end up getting sued, so let's dive into the world of promotions and how to run them legally.

In case you're wondering, I am not a lawyer and this is not legal advice.

First and foremost, let's get one thing straight—gambling is illegal unless you are a licensed casino. When you make someone exchange something of value for a chance to win something, that is considered a lottery or, simply put, "gambling." The rules are in place to ensure fairness and to prevent people from starting their own illegal casinos.

The Three Elements of a Promotion

The three key elements that determine whether a promotion is gambling or an illegal lottery are Prize, Chance, and Consideration.

Prize is the thing that a person (or people) wins.
Chance means there are odds involved in winning.
Consideration is the requirement that something of value be given up in order to be “considered” for the promotion.

If you have all three elements, you risk legal trouble.

Playing By the Rules

To avoid holding an illegal lottery, simply eliminate one of these elements.

Prize is the hardest element to remove since you want to be incentivize your listeners to enter. You could skirt the prize by having a prize with no value. For instance, you might name one of your random paid subscribers as, "The Good Morning Podcasters listener of the week."

You can remove Chance by turning the promotion into a contest where winners are chosen based on certain criteria rather than by chance, or into a giveaway where everyone who enters wins a prize.

Consideration is the easiest to get rid of - just don't require that listeners pay to play.

The Types of Promotions

So what exactly are the different types of promotions?

Sweepstakes: A sweepstakes is a promotion that has Prize and Chance but no Consideration.
Contest: A contest is a promotion where there is Prize and could be Consideration but no element of Chance and winners are chosen based on certain criteria.
Giveaway: A giveaway is similar to a contest, but with the element of Chance removed by giving everyone a prize.

Other Things to Consider

When running a promotion, it's important to have official rules detailing how a listener can win and how the prizes will be distributed. To reduce the appearance of impropriety, it's best to have a third-party draw the random drawings. Don't forget to put an end date for the contest and consider asking a lawyer for advice, as rules vary by location.

Running promotions is a great way to engage your audience and keep them coming back for more. Just make sure to know the difference between a contest, sweepstakes, and illegal lottery, and to follow the rules and regulations to avoid any legal trouble. And remember, never refer to your promotion as a raffle or lottery unless you are properly licensed to run one.

As a podcaster, you should really know the rules and regulations surrounding promotions, so you can run them legally and fairly for your listeners. Don't risk getting sued—follow these guidelines and the advice of your actual legal counsel, and you'll be able to run successful and exciting promotions for your audience.

In case you're wondering, I am not a lawyer and this is not legal advice.

The Three Elements of a Promotion

The three key elements that determine whether a promotion is gambling or an illegal lottery are Prize, Chance, and Consideration.

Prize is the thing that a person (or people) wins.
Chance means there are odds involved in winning.
Consideration is the requirement that something of value be given up in order to be “considered” for the promotion.

If you have all three elements, you risk legal trouble.

Playing By the Rules

To avoid holding an illegal lottery, simply eliminate one of these elements.

You can remove Chance by turning the promotion into a contest where winners are chosen based on certain criteria rather than by chance, or into a giveaway where everyone who enters wins a prize.

Consideration is the easiest to get rid of - just don't require that listeners pay to play.

The Types of Promotions

So what exactly are the different types of promotions?

Sweepstakes: A sweepstakes is a promotion that has Prize and Chance but no Consideration.
Contest: A contest is a promotion where there is Prize and could be Consideration but no element of Chance and winners are chosen based on certain criteria.
Giveaway: A giveaway is similar to a contest, but with the element of Chance removed by giving everyone a prize.

Other Things to Consider

Previous Episode

Podcast PR: Who Should You Pitch?

1 Recommendations

If your podcast has some news to share, figuring out the right journalist to pitch to can seem daunting, but it's a crucial part of getting your news in front of the right people. The last thing you want to do is spam journalists, as this will result in them blocking you faster than an NFL offensive tackle. Instead, you need to have a strategic approach to PR list building.

Finding Your Target Audience

Start by determining who your target audience is and make a list of journalists and podcasters who cater to that audience. If you have a strong niche, you likely already have an idea of who those journalists are. For example, if you are a podcaster focused on renewable energy, you would want to target journalists and podcasters in the renewable energy space, as well as those who write about sustainability and the environment.

In this example, let's say your solar energy podcast just raised $100,000 to put a solar roof on an underprivileged school.

Reaching Out

Next, contact the right people at the right media outlets. For TV stations, you want to reach the news desk. Find the email addresses of the local TV stations near the underprivileged school that you want to put a solar roof on, and reach out to the news desk. If it's for a specialty like sports or weather, reach out to the specific reporter.

For radio stations, reach out to the news director, a morning show producer, or the radio personality if it's a small local station.

For newspapers, reach out to the education reporter in a bigger city or the general news reporter in a smaller paper.

For blogs, reach out to the writer of similar stories, and for podcasts, reach out to the podcaster.

Find Other Audiences

But that's not all. In this example, you'll also want to make a separate list of journalists in the solar space and in the broader renewable energy space. This includes magazines, industry websites, and podcasts in those categories. For magazines, pitch the editor in charge of your topic, and for websites, look for the people who wrote articles in your niche.

If it's really big news, you can also pitch journalists in the podcasting industry. However, your goal is to get more listeners in your niche, not more listeners who are podcasters.

PR list building is a strategic approach to getting your news in front of the right people. Start by determining your target audience and make a list of journalists and podcasters who cater to that audience. Reach out to the right people at the right media outlets and make a separate list of journalists and publications in your niche. By following these steps, you'll increase your chances of getting noticed and building credibility for your website and brand.

Next Episode

"Newswire Press Releases: Are They Worth It?" with Scott Covelli

2 Recommendations

Have you ever wanted to send out a press release and thought, "Hey, there are distribution services that can push this out to all the news outlets. I could be on CNN! I could be in the New York Times! I could be EVERYWHERERERERE!!!"

Before you go wasting your money on a wire service distribution, let's talk about what newswire releases are and whether or not they're worth it.

On today's episode, I'm joined by EPIC Creative's Content Director and Head of PR, Scott Covelli.

What is a Newswire?

A newswire is a tool you can use to distribute press releases to media outlets and journalists. These distributions come with a fee that is usually determined by the size of the audience, number of images or logos accompanying your release, and often by word count. Wires are typically used to send news to large audiences of journalists—though they often are themed by industry (e.g., automotive, oil & gas, food & beverage, etc.) and geography.

What Does a Newswire Release look like?

If you're sending a newswire release, it should be written in a standard press release format. This will ensure it's easy for journalists and news outlets to quickly assess whether the information you're sending them is relevant to their audience. The release typically includes a headline, a dateline, a lead paragraph, the body of the release, and media contact information. On Episode 6 of GMP, I walk you through the standard format of a press release.

As with any press release, the information included in the release should be newsworthy and not just an ad written in a press release format.

What Are the Benefits of a Newswire Distribution?

The biggest benefit of a newswire service is the wide reach it can provide. Newswire services have established relationships with a variety of media outlets, making it likely that your release will be picked up and published by multiple sources. This can help to increase the visibility of your news, and can also give you the appearance of credibility by landing placements on multiple sites.

What Are the Limitations of Newswire Distributions

Newswire releases certainly have their limitations. Since they are sent out to such wide audiences, it can be difficult to ensure that your release is targeting the right news organizations.

Distributions are "pay-to-play." Your news will most likely get picked up, possibly on hundreds of sites, but it will generally be a straight copy/paste of your press release. The placement of these releases, however, is usually in the utter depths of hell of a news site. Even if you are getting picked up on MSNBC or the NYT, it's almost always in a place that is not ever going to be seen by a human. Also, the links in your release will likely be given the rel="nofollow" HTML tag, stripping you of the possible SEO benefits from the host site.

News releases sent via a wire service are also quite costly. Even the most basic services charging a few hundred dollars at a minimum. If your release includes additional elements such as images and your podcast's logo, the cost can easily exceed $1,000. It's important to keep in mind that the cost of the service does not guarantee that your release will be picked up by specific media outlets.

It may be worth exploring other cost-effective options for distributing your release, such as sending it directly to targeted media contacts or posting it on your podcast's website and social media channels.

However, if that $1,000 is burning a hole in your pocket, you could spend it on Facebook or Instagram ads and potentially reach even more people than you would with a newswire distribution.

Down to The Wire

Newswire-distributed press releases are popular for a reason—but that reason is mainly self-gratification. If you're going to use a service like this, make sure your news is legitimately newsworthy, and only use this tool sparingly. A newswire release cannot replace genuine relationships with journalists, which are key to meaningful and ongoing media coverage.

Good Morning Podcasters! - Podcast Promotions: Contests, Sweepstakes, & Illegal Lotteries

Transcript Summary

In this episode titled "Podcast Promotions: Contests, Sweepstakes, & Illegal Lotteries", you'll learn about the crucial distinctions between contests, sweepstakes, and illegal lotteries. Dive into the deceptive tactics employed by MailChimp in their email regarding free tier subscriber limitations. Discover essential guidelines for running promotions to avoid legal troubles, as well as the key elements involved in an illegal lottery: prize, chance, and consideration. Uncover strategies to transform an illegal lottery into a legal promotion by removing one of these elements. Explore different types of promotions, including sweepstakes, contests, and giveaways, and understand the significance of official rules and contest end dates. Gain insights on third-party draws and the importance of seeking legal advice. Don't miss this episode to discover why it is imperative to never label a promotion as a raffle or lottery without proper licensing.

Transcript

Fuzz Martin 0:00

Good Morning. Podcasters Do you know the difference between a contest a sweepstakes and an illegal lottery? You should. I'd hate for you to get sued.

Fuzz Martin 0:13

Hello and Happy Monday. Welcome to this the 46th episode of Good Morning Podcasters. My name is Fuzz Martin. And this is a three times per week show about marketing advertising, PR, and social media for podcasters. Though the content, it'll really help you whether you're a podcaster or not

Podcast Promotions: Contests, Sweepstakes, & Illegal Lotteries Top Questions Answered

What is the difference between contests, sweepstakes, and illegal lotteries?

Contests involve a prize and consideration but no chance, while sweepstakes have a prize and chance but no consideration. Illegal lotteries typically involve all three elements.

What are the limits on free-tier subscriber emails for MailChimp?

MailChimp has imposed restrictions on the number of emails that can be sent by free-tier subscribers.

How can promotions avoid legal trouble?

Promotions should not involve gambling to avoid legal issues.

What determines whether something is considered a gambling or illegal lottery?

The three variables that determine if something is considered a gambling or illegal lottery are prize, chance, and consideration.

What are some ways to eliminate one of the variables in a promotion?

The episode mentions various ways to eliminate one of the variables in a promotion to differentiate it from gambling or illegal lotteries.

Do sweepstakes involve chance?

Yes, sweepstakes involve chance but no consideration.

Do contests involve chance?

No, contests involve a prize and may have consideration, but they do not involve chance.

Do giveaways involve chance?

No, giveaways involve a prize and consideration, but they do not involve chance.

What important considerations should be taken into account when running promotions?

Essential considerations for running promotions include having official rules, specifying a contest end date, and potentially seeking legal advice.

Is it advisable to refer to a promotion as a raffle or lottery?

It is generally advisable to avoid referring to a promotion as a raffle or lottery unless the necessary licensing and legal requirements have been met.

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