Running a sweepstakes, contest, or instant win promotion that's open to Texas 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 TX. Federal requirements (FTC rules, no-purchase-necessary, tax reporting) apply in every state — this page focuses on what's unique to Texas.
Registration Requirements
Texas does not require sweepstakes registration or bonding. Texas does not require sweepstakes registration or bonding. Your promotion must comply with federal requirements (FTC rules, no-purchase-necessary, postal lottery statutes) and TX's general consumer protection laws.
Key Statutes
The following Texas statutes are relevant to sweepstakes and promotional compliance:
- Tex. Penal Code § 47.01 et seq. (gambling)
- Tex. Bus. & Com. Code § 622.001 et seq. (contest and gift giveaway act)
- Tex. Bus. & Com. Code § 17.41 et seq. (DTPA)
Regulatory body: Texas Attorney General
Sweepstakes Rules in Texas
Legal with standard NPN compliance. Texas Business & Commerce Code § 622 (Contest and Gift Giveaway Act) requires specific disclosures in sweepstakes promotions, including the name and address of the sponsor, eligibility requirements, and the approximate retail value of prizes.
Contest Rules
Skill-based contests are permitted without additional state requirements.
Instant Win Rules
Instant win games are legal with standard free entry requirements. Subject to Contest and Gift Giveaway Act disclosure requirements.
Raffle & Lottery Rules
Raffles: Raffles are permitted for qualified organizations under the Texas Charitable Raffle Enabling Act.
Lotteries: State-run via Texas Lottery Commission. Private lotteries are illegal.
Commercial raffles are illegal in Texas
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
Texas permits DTC wine shipments with a winery permit. Beer and spirits DTC is restricted. TABC (Texas Alcoholic Beverage Commission) regulates distribution.
Special Restrictions & Notes
- Texas Contest and Gift Giveaway Act (Bus. & Com. Code § 622) requires specific disclosures in sweepstakes promotions including sponsor name/address, eligibility, and prize ARV.
Key Takeaways for Texas
Texas 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 Texas'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.
