You want to give something away to promote your business, but "giveaway" walks a legal line. Under U.S. law a promotion is an illegal lottery only when it combines three elements: a Prize, Chance, and Consideration (a purchase or something of value required to enter). Remove any one of the three and the promotion is lawful for a private business. This is the single test every promotion plan should start from, and it is laid out in the federal baseline.
A sweepstakes keeps the Prize and Chance but removes Consideration — every entrant must be able to enter for free, with a "No Purchase Necessary" statement and an equal-dignity free entry path. A contest keeps the Prize and Consideration but removes Chance — winners are selected by skill or judged merit, not a random draw. The federal overview shows exactly which element each format drops and why that makes it lawful.
The state layer is where plans quietly break. Four states impose extra registration or bonding requirements once prize values cross certain thresholds: New York, Florida, Rhode Island, and Arizona. Each state page summarizes its rule and links to the controlling statute or agency — read the ones relevant to where you promote before you set prize values.
If you promote in Canada, the same three elements apply but the fix is different: remove consideration (free entry) and add a skill-testing question so the winner is not chosen by pure chance. The Canada notes explain the Criminal Code test and the Quebec changes under Bill 17 (effective October 27, 2023).
Before you publish anything, run the compliance checklist to produce a state-aware, printable list of what your specific promotion needs. Knowing the format narrows the work; the checklist finishes it.