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Paid raffle tickets versus free sweepstakes entries: the legal difference
Paid raffle tickets and free sweepstakes entries look alike but follow different rules. How US law separates them, with examples from the rules we reviewed.
By Daniel Whitfield, Editor · Updated November 2, 2026
A raffle ticket and a sweepstakes entry can both give you a chance to win a car. The legal difference lies in what you must give to enter. Broadly, a sweepstakes is free to enter, while a raffle requires payment. That is why the two are regulated differently, and why a raffle usually needs a state licence or registration.
The basic difference
US law generally sorts prize promotions by three elements: a prize, chance, and consideration. Consideration means payment or something of value you must give to enter. A promotion with all three is a lottery, which states usually restrict. Removing consideration gives a sweepstakes, which must offer a free way to enter. A raffle keeps consideration, which is why states typically license or register it. These are general points, and the exact rules depend on the state.
What the paid raffles we reviewed do
- Mile High Raffle. A $50 ticket is the only way in. The rules say all entries require payment by credit card, and the raffle operates under a Colorado Bingo-Raffles licence.
- RMHC San Diego Giving Back Raffle. Tickets start at $150, and the rules state that all entries require payment. The raffle is registered with the California Attorney General.
- Arizona Diamondbacks Foundation raffle. Entries cost $50, and no free entry method is stated.
Each of these raffles states that payment is needed to enter, and none states a free route.
What the free sweepstakes we reviewed do
- Dream Giveaway. Free entry is by mail. The rules say no purchase, contribution, donation or payment is necessary, and entrants send a self-addressed stamped envelope. See the Dream Giveaway review.
- Publishers Clearing House. Free entry is available, and the official rules say no purchase is necessary. The rules also say a purchase will not improve your chances. See the PCH review.
Why the difference matters for you
A paid raffle is a purchase with a chance attached. You should treat the ticket as money spent, whether or not you win. A free sweepstakes costs you only the time and the postage or effort that its free entry method requires. The paid raffles above also state that their entries are not tax-deductible, so a ticket is not a donation you can claim.
What to check
Ask whether the offer is paid or free before you enter, and read the entry section of the official rules. If the only way to enter is to buy something, you are in a paid raffle. If the rules say no purchase is necessary, you are in a sweepstakes. For more on the difference, see our guide on sweepstakes, lotteries and raffles or the sweepstakes page.