Sweepstakes Vs. Lotteries: How Are They Different?

Sweepstakes Vs. Lotteries: How Are They Different?

Sweepstakes and lotteries are bigger than ever.

  • Lotteries are the most popular type of gambling in the US
  • Over 100 countries have a national lottery
  • 55 million+ Americans take part in sweepstakes every year

Another fun little fact is that billions of dollars’ worth of lottery tickets go missing every year, so always remember to check your tickets and keep them stored somewhere safe.

Now, when it comes to sweepstakes and lotteries, there’s often some confusion. Tons of people mix them up, so you can find out here what the difference is between these two types of contests.

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Lotteries Are Paid, Sweepstakes Are Free to Enter

The big difference is that you have to pay to enter the lottery, whereas sweepstakes are completely free.

On average, most lottery tickets cost around $1 to $5. Sweepstakes, however, just need your name and contact information. No type of payment is required.

Most lotteries are backed by a country’s government. For example, in the UK, you have the government regulated ‘National Lottery’, while in the US the ‘Powerball’ and ‘Mega Millions’ lotteries are state-run lotteries.

Sweepstakes contests are hosted by private companies. McDonald’s, Coca-Cola, Nestlé, Disney, Walmart, you get the idea. These are the types of brands that are known for hosting sweepstakes.

Also, cash is the prize in almost every lottery, whereas sweepstakes offer a huge range of potential prizes, from cars to Super Bowl tickets.

Just last month, two Powerball players in Missouri and Texas won a $1.8 billion jackpot, while a lady named Tricia Smith from New York was randomly selected from more than 118 million sweepstakes entries to win the HGTV “Dream House” 2025, valued at over $2.2 million.

It’s also been a busy couple months for sweepstakes casinos, with a player inside Jackpota recently winning 231,321 Sweeps Coins on the Jingle Coins slot machine.

There have been a few cases in the past of sweepstakes casinos allegedly not paying out on big wins, but this certainly wasn’t the case with Jackpota, and any future players out there can get help in dealing with player complaints if they need it.

Entry Requirements for Lottery and Sweepstakes

Lotteries and sweepstakes are easy. All you have to do is remember to enter them, meet the requirements, and you’re good to go. So, here’s how they generally work.

Lottery

For those looking to play the lottery, you’ll need to buy a ticket.

This can be done online through your chosen lottery operator’s site or in-person, such as at a convenience store.

Simply pick the lottery numbers yourself or do a quick pick and have them generated randomly for you.

Depending on which specific lottery you’re playing, a ticket will cost at least $1 and you’ll need to prove you meet the age requirement, which is usually 18+ or 21+ in certain US states.

You’ll then need to wait until the lottery results are announced (fingers crossed, you’ll win).

Sweepstakes

Entering a sweepstakes is a little different.

The majority of sweepstakes are free-to-enter and you simply need to fill out a short form with your name, email address, and home address.

Most of the time, this is done through a company’s official website or social media page.

Once you’ve submitted your entry, it’s just a case of waiting for the sweepstakes results, whether you’re looking to win a holiday getaway or a brand-new car.

Claiming Prizes

Anyone lucky enough to win the lottery can usually claim small prizes from local retailers or convenience stores.

If it’s a big reward, such as $100,000, then you’ll usually need to claim it at the official lottery office, bringing some official ID and paperwork to confirm you’re the real winner.

With sweepstakes, it’s a little different, as whoever is running the sweepstakes will typically contact you via email or phone. They will then walk you through the prize claim process, which, again, will involve you verifying your identity before the prize is given to you.

Remember, lotteries and sweepstakes are time-sensitive. Avoid the mistake of waiting too long to claim your prize, because most of them have strict deadlines.

Someone recently purchased a $1 million winning Powerball ticket from a Citgo gas station last month, yet the ticket hasn’t been claimed. Whoever that lucky individual is only has 180 days to do it, otherwise they won’t turn themselves into a millionaire.

So, whether you’ve bought a lottery ticket or entered a sweepstakes, always keep proof of entry and keep track of the prize draw dates.

Summary

No matter where you live, entering lotteries or sweepstakes has never been easier.

Plus, you now know the difference between the two.

Lotteries are pay-to-enter cash draws, while sweepstakes are free-entry giveaways where prizes can range anywhere from gaming consoles to Las Vegas trips.

Before you enter, though, check the entry requirements and provide legitimate personal details so that (if you do win) the company will be able to contact you.

Good luck.

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