I want to incentivize customers to sign up to my email list by offering a free prize. What legal requirements if any are needed in order not to get into any trouble? I am based in the UK. Thanks in advance.
I have looked into this when I did a fantasy football website - You must register with the gambling committee unless the competition requires some skill rather than random luck. That was 2 years ago so double check.
I am confused by your question. In the U.S., if everyone receives a free incentive (and free means free, they don't pay the freight unless it says so conspicuously in the offer) then it is ok. But your question said drawing. If everyone just receives a chance to win a prize in a drawing then you are holding a lottery and all the 50 states have laws against that. ______________ Andrew M. Jaffe
That's not entirely correct. If there is a charge to enter, like selling tickets, then it is a lottery. If anyone can enter to receive a free prize, then it is a Sweepstakes. You can have a drawing for a prize - like Publishers Clearing House. Individual states may have regulations, but if it is entirely free, it isn't automatically illegal.
In the UK we are regulated by the Gambling Commission. If you want to run a FREE fantasy football game and offer cash prizes you can do withOUT needing a license. We do that on our site fantasyfa.com Joining is free for the epl league we have and winners win cash. But i must stress entry must be FREE. As soon as there is an entry fee or any fee it is gambling (in the uk). Even if you charge for "upgraded accounts" or say you must buy this and then you get entry into our league that would be classed as gambling. Otherwise it's straightfoward free entry = not gambling. PM for more details or if you require a professional fantasy game with prizes included