What's the Difference Between a Sweepstakes and a Raffle?
See how entry cost, host type, and payout rules differ so you can spot free draws and charity tickets fast.
A sweepstakes is a prize drawing that picks winners by chance and offers a free way to enter. A raffle is a fundraising drawing that sells tickets for a chance at a prize and directs the money to a charitable purpose. The U.S.
Postal Inspection Service defines a sweepstakes in its consumer guide to sweepstakes and lotteries as prizes awarded by chance with no purchase or entry fee required. The Washington State Gambling Commission explains in its sweepstakes FAQ that a raffle authorizes a bona fide charitable or nonprofit organization to sell tickets at a set rate.
Verification note: Program terms and availability can change. This page was checked against linked sources on November 03, 2026.
Why payment is the dividing line
Prize, payment to enter, and selection by chance are the three parts of an illegal lottery. Foley Hoag guidance describes how sweepstakes and contests lawfully keep only two of those three parts. A sweepstakes keeps prize and chance but removes payment.
A raffle keeps payment and chance but operates under a narrow fundraising exception for nonprofits. That distinction explains why free entry matters so much in one format and ticket sales matter so much in the other.
How a sweepstakes stays free
A legitimate sweepstakes does not require a purchase, entry fee, or paid improvement to odds. Federal Trade Commission guidance in its consumer advice on prize promotions says real sweepstakes are free and decided by chance. Readers should look for written entry rules that state a free entry method.
Winners are drawn at random, not chosen for loyalty, spending, or need. A request for payment to enter, claim a prize, or improve odds does not fit that model.
How a raffle stays charitable
A legitimate raffle is run by an eligible religious, charitable, or nonprofit group, not by an individual or retail business. Washington rules do not allow the operator to give away free tickets, which keeps the event separate from a free promotional drawing. California adds a clear payout test.
The California Department of Justice explains in its guidance on fundraising raffles that eligible nonprofits must direct at least 90 percent of gross receipts to beneficial or charitable purposes in California. Other states set their own license, tenure, and use-of-funds tests.
What to check before you enter
Start with cost, host, and rules. State authorization varies, and a hybrid online promotion that mixes paid raffle tickets with free entries is not automatically lawful. Keep the ticket stub, entry confirmation, drawing date, and contact information for the sponsor or nonprofit.
- Free or paid: free entry points to a sweepstakes; a set ticket price points to a raffle.
- Host: a brand or retailer usually offers a sweepstakes; a charity or school group usually offers a raffle.
- Rules: check eligibility, deadlines, drawing method, prize count, and how funds are used.
- Payment pressure: pause when entry requires purchase, wire payment, gift cards, or a fee to claim.