Running a 'Winning' Prize Promotion in the United States

Abstract

A well-run prize promotion can stimulate consumer engagement, increase brand awareness, and improve loyalty. By contrast, a poorly run prize promotion can result in negative publicity, damage to the brand, and legal action. To run a “winning” prize promotion and help avoid potentially disastrous results, sponsors need to recognize the variety of laws that can apply to prize promotions. In the United States, these laws include gambling/lottery laws, as well as laws relating to the structuring, marketing and administration of prize promotions.