Guide · Updated October 18, 2026
What "No Purchase Necessary" really means
Why almost every US sweepstakes carries those three words, how free entry works, why buying never improves your odds, and what to do when a "giveaway" asks you to pay.
Look at the fine print of nearly any US sweepstakes, from a soda cap code to a gift card giveaway, and you'll find the words no purchase necessary. It isn't just friendly marketing. That phrase is what keeps a sweepstakes legal, and once you understand it, it becomes one of the easiest ways to tell a real promotion from a scam.
Prize + chance + consideration = lottery
In the US, a promotion is generally treated as a lottery when it has three elements:
- A prize: something of value, such as cash, a gift card or a trip.
- Chance: the winner is picked at random rather than by skill.
- Consideration: you have to give something of value to take part, usually money or a purchase.
Lotteries are tightly regulated, and private lotteries are generally illegal in the US, apart from narrow exceptions such as some charity raffles. A business that wants to give away prizes at random therefore removes one of the three elements. Prizes and chance are the whole point of a sweepstakes, so the element that goes is consideration. That's why legitimate sweepstakes are free to enter and say so in their official rules.
Contests work differently. When winners are chosen by skill (a judged photo, an essay or a recipe), the chance element is missing, and many states allow skill contests to have different entry requirements. When you see a random drawing, though, it should be free.
The alternate method of entry
Some sweepstakes are tied to a product: buy a drink and get a code, or shop and get an entry. To stay free, those promotions offer an alternate method of entry, often shortened to AMOE. It might be an online form, a mailed postcard or a request for a free game piece. The official rules describe it, and free entries are supposed to have the same chance of winning as entries that came with a purchase.
Online gift card sweepstakes are usually simpler: the entry form itself is the free method. You fill in your details and you're in, no payment involved. That's how the promotions we list work. You can see the details for each one on our Walmart gift card sweepstakes, PayPal gift card sweepstakes and Cash App gift card sweepstakes pages. None of them is run by those brands.
Enter the Walmart gift card sweepstakesWe may earn a commission. Not affiliated with Walmart. No purchase necessary.
Why buying never raises your odds
Because free entry has to be a genuine option, a sponsor can't quietly give paying customers a better shot. Rules often spell this out with a line like "a purchase will not increase your chances of winning," and federal law requires that kind of statement in sweepstakes promotions sent by mail. In practice, your odds depend on how many entries the sponsor receives and how many prizes it offers, both of which the rules usually explain. Spending money is never the trick.
The same thinking applies after the drawing. Winning shouldn't cost you anything up front. You may have to confirm your eligibility, sign an affidavit or provide tax information for a larger prize, and prizes can count as taxable income. Those taxes are between you and the IRS. A sponsor doesn't collect them by asking you to send money first.
Enter the PayPal gift card sweepstakesWe may earn a commission. Not affiliated with PayPal. No purchase necessary.
What "no purchase necessary" doesn't mean
Free to enter doesn't mean nothing is asked of you. Sponsors typically ask for an email address and some basic details, and many will send you marketing messages, which their privacy policies explain. Entering is also limited to the people named in the eligibility rules, such as US residents who are 18 or older. And "no purchase necessary" never means "guaranteed to win." Winners are picked at random, so most entrants won't win.
If a giveaway asks you to pay
If a "sweepstakes" wants a processing fee, a shipping charge, a tax deposit or gift card codes before you can enter or collect a prize, stop there. That's the most common sign of a scam. Don't send money or card details, and don't reply with personal information. Look up the sponsor's real website, check the official rules for how winners are contacted, and report the message to the platform and to the FTC at ReportFraud.ftc.gov. For more warning signs, read our guide on how to spot a fake giveaway.
Enter the Cash App gift card sweepstakesWe may earn a commission. Not affiliated with Cash App. No purchase necessary.
FAQ
Does buying something give me a better chance to win a sweepstakes?
No. In a properly run US sweepstakes, free entries and entries that come with a purchase have the same chance of winning. Many official rules say this directly, often with wording like "a purchase will not increase your chances of winning."
What is an alternate method of entry (AMOE)?
It's the free way to enter a sweepstakes that is also tied to a product or purchase. Common examples are an online entry form, a mail-in entry with a handwritten postcard, or a request for a free game piece. The official rules explain exactly how it works.
Why do sweepstakes rules say "void where prohibited"?
Promotion laws vary from state to state and country to country. The phrase signals that the sweepstakes doesn't apply anywhere it would be illegal, and the eligibility section of the rules tells you exactly who can enter.
Is it legal for a contest to charge an entry fee?
Contests decided by skill, like a judged photo or recipe contest, are treated differently from sweepstakes in many states and may charge a fee in some cases. A sweepstakes, where winners are picked at random, should not require payment to enter or to win.
A giveaway says I won but asks me to pay a fee. Is that legit?
Treat it as a scam. Real sponsors don't ask winners to pay to release a prize or to send gift card codes, crypto or wire transfers. Prizes can be taxable income, but you settle that with the IRS when you file, not by paying the sponsor.