Running a sweepstakes, contest, or instant win promotion that's open to Alabama residents? This guide covers every state-specific requirement you need to know — registration obligations, bonding, raffle restrictions, alcohol prize rules, and the key statutes that govern promotions in AL. Federal requirements (FTC rules, no-purchase-necessary, tax reporting) apply in every state — this page focuses on what's unique to Alabama.
Registration Requirements
Alabama does not require sweepstakes registration or bonding. Alabama does not require sweepstakes registration or bonding. Your promotion must comply with federal requirements (FTC rules, no-purchase-necessary, postal lottery statutes) and AL's general consumer protection laws.
Key Statutes
The following Alabama statutes are relevant to sweepstakes and promotional compliance:
- Ala. Code § 13A-12-20 et seq. (gambling offenses)
Regulatory body: Alabama Attorney General
Sweepstakes Rules in Alabama
Legal with standard NPN compliance. Alabama's gambling statutes define lotteries broadly — ensure your promotion clearly eliminates consideration to avoid classification as an illegal lottery.
Contest Rules
Skill-based contests are permitted. Judging criteria must be genuine and documented to avoid reclassification as a game of chance.
Instant Win Rules
Instant win games are legal provided they include a free entry method. Game pieces and reveal mechanics must not require purchase.
Raffle & Lottery Rules
Raffles: Raffles are restricted to qualified nonprofit organizations. Commercial raffles are prohibited under Alabama gambling law.
Lotteries: Alabama is one of the few states without a state lottery. Private lotteries are illegal.
Commercial raffles are illegal in Alabama
Raffles — where participants pay for a ticket and winners are drawn at random — are restricted to qualified nonprofit organizations. Brands cannot run commercial raffles. If your promotion involves purchasing a ticket for a chance to win, restructure it as a sweepstakes (free entry required) or a contest (skill-based judging).
Alcohol Prize Rules
Alabama is an ABC (Alcoholic Beverage Control) state. Alcohol prizes must comply with ABC Board regulations. Direct-to-consumer shipping of alcohol is prohibited.
Key Takeaways for Alabama
Alabama Compliance Checklist
- Comply with all federal requirements (FTC, NPN, postal lottery statutes)
- Draft complete official rules with all required disclosures
- Ensure AMOE provides equal odds of winning
- Collect W-9 for prizes valued at $2,000+
- Include 'void where prohibited' clause in official rules
- Check Alabama's consumer protection laws for disclosure requirements
Related Resources
For the complete legal framework that applies to all U.S. sweepstakes, see our pillar guides:
- The Complete Guide to Sweepstakes Laws — federal requirements, state registration, official rules, and tax reporting
- How to Run a Sweepstakes — step-by-step guide from planning to winner selection
- Interactive Sweepstakes Law Map — see requirements for all 50 states at a glance
- State Registration & Bonding Requirements — deep dive on NY, FL, and RI registration
- Sweepstakes vs Contest vs Lottery — the legal distinctions that determine compliance requirements
Revup
Revup tracks state-by-state compliance requirements and flags registration obligations based on your prize value and eligible states.
