Podcast Promotions: Contests, Sweepstakes, & Illegal Lotteries

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.