Many Contests For Money Have Big Sponsors

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Some people say that contests for money, and other types of high payout sweeps and contests, are a scam. They say the only legitimate types of contests for money are raffles or the lottery. This is a common argument that is not necessarily true.

Contests For Money

(Are usually legitimate)

With so many big names running large contests for money,  sponsors such as sweepstakes, Disney sweepstakes, DIY sweepstakes, Dr. Pepper sweepstakes and other large soda companies, how could any sane person call these contests a scam?

If you use their products you know these companies are legitimate, it’s not a big leap of faith believing that sweepstakes are legitimate. Not need to worry, because sweepstakes definitely are. People do win the prizes they show you at their promo page, and the contests for money and other large prizes, such as homes and cars at other sites, are usually being run ethically.

Contests For Money

(The FTC has laws)

One important rule to remember about Internet sweepstakes is that they’re regulated by state and FTC (Federal Trade Commission) law. Rules do vary from state to state, but one rule that is consistent is that instant win sweepstakes and contests are free to enter. Only legitimate raffles, governed by stringent rules, can charge for entries. They have to be associated with a registered charity, and it’s a lot of trouble setting this up.

contests for money

Lucky cash wins

Contests For Money

(There are many limitations)

However, it is legal for sponsors of sweepstakes and contests to limit who can enter them, as they are allowed to limit entries only their customers by age, gender, or according to residency. Certain categories of sweepstakes and contests are illegal in some states; e.g., sweepstakes run by alcoholic beverage companies are not legal in California, Utah and sometimes Tennessee.  Some sweepstakes and contests are not legal in states that require the sponsor to post a bond. This is why so many giveaways are not legal in Florida, and almost as many are not legal in New York state.

For the most part, Florida has the most strict rules governing instant win sweepstakes and contests, due to past abuses by some well know magazine companies running sweepstakes and contests who were abusing the trust of senior citizens. Unethical practices included fooling Floridians into into believing they had won cash prizes when it wasn’t so, and using language to infer that a purchase had to be made to enter and win.

The state of Florida stepped in and passed laws that are more protective of residents (or more annoying and restrictive to sweepers — take your pick). Most sweepstakes and contests that are limited by state do not accept Florida entries.

Entering instant win sweepstakes and contests is a great hobby that is fun and profitable. So, if you see a prize being offered at an established site like or DIY sweepstakes, don’t worry or hesitate to enter it. You may not win, but an Internet sweepstakes with a big-name sponsor attached to it is certainly being legitimately run.

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