You have no doubt seen the phrase "No Purchase Necessary"plastered across many contest promotions. This statement specifically targets state laws that prohibit illegal lotteries. Games of chance may not require consideration of any kind, including purchase, from an entrant. The phrase "No Purchase Necessary" attempts to emphasize that anyone can enter the contest, regardless of whether he purchases the product or service that is the subject of the promotion.
It is only natural for a contest sponsor to want to condition a contest submission to a specific task or action that benefits the company, product or service being promoted. For example, a company may want to require that a contest entrant fill out a survey, watch a marketing video, consent to receive marketing emails, subscribe to its website or download free software as a condition to entry. The problem is, while some states narrowly define "purchase" as including only a direct payment by the entrant, the majority of states define "purchase" in broad terms. This means that, in the majority of states, any condition to entry (other than filling out a simple entry form) turns your contest into an illegal game of chance.
One relatively easy solution to the "illegal lottery" problem is to make the contest one of skill, rather than chance. For example, if your company wants to encourage Twitter users to re-tweet information about a company promotion or event, you might consider a skill-based contest where the most creative and original re-tweet wins the prize.
