Giveaway Glossary: Common Sweepstakes Terms Explained

This plain-language glossary explains the sweepstakes and giveaway terms you will most often see online. It is general information, not legal advice. Always refer to the Official Rules of any promotion for the final word on eligibility, timing, and how winners are selected and verified.

A

Administrator

The party that runs day-to-day operations of a promotion on behalf of the sponsor (e.g., builds entry forms, validates winners). Sometimes the sponsor and administrator are the same.

Affidavit of Eligibility

A sworn statement a potential winner may be required to sign confirming they meet all eligibility requirements.

Age of Majority

The age at which a person is legally considered an adult in their state or territory (often 18, sometimes 19 or 21). Promotions may require entrants and winners to be at or above this age.

AMOE (Alternate Method of Entry)

A free way to enter a promotion so no purchase is required. Not all promotions need an AMOE if there is no purchase path at all.

ARV (Approximate Retail Value)

The sponsor’s good-faith estimate of a prize’s retail value for display and tax purposes. Actual value can vary.

B

Bonus Entries

Additional entries beyond the base entry, sometimes for completing optional actions. Official Rules should describe any limits and whether actions are required or optional.

Bots/Fraud Detection

Tools used to prevent automated or fraudulent entries. Violations can result in disqualification.

C

Claim Window / Deadline

The time period a selected winner has to claim a prize before it is forfeited or awarded to someone else.

ZipSweep note: If the exact code winner does not claim by 9PM, we may roll the prize to the whole ZIP code on a first-come, first-served basis at our discretion.

Consideration

In sweepstakes law, a cost or burden on an entrant. Promotions must avoid requiring consideration in a way that would make them a lottery (e.g., requiring a purchase without a free entry alternative).

Contest (Skill-Based)

A promotion where winners are chosen based on skill or judged criteria, not chance. Different rules and laws apply than for sweepstakes.

D

Daily Draw

A drawing that occurs once per day to select a potential winner.

ZipSweep note: We randomly generate a daily winning code made up of a U.S. ZIP code and a unique user ID.

Disqualification

Removal of an entry or entrant for violating rules (e.g., ineligibility, fraud, late response, multiple accounts).

Drawing (Random Drawing)

The random selection process used to choose potential winners in a sweepstakes.

E

Eligibility

Who can enter, typically defined by age, residency, and other factors. Often excludes employees of the sponsor and their immediate families.

Email Consent

Permission to receive emails related to the promotion. You can typically opt out at any time.

ZipSweep note: We only use your email for daily reminders and occasional updates, and we never share your details unless you say it is ok.

Entry Cap / Limits

The maximum number of entries allowed per person, email, or household during a promotion.

Entry Period

The start and end dates and times when entries are accepted. Times are usually stated in a specific time zone.

F

Fair Play

Commitment to equal opportunity and transparent rules. Includes anti-cheating measures and consistent enforcement of eligibility.

First Come, First Served

A method where the first eligible person to act gets the prize.

ZipSweep note: If a prize rolls over to a ZIP code, it becomes first come, first served for users in that ZIP.

Force Majeure

Unforeseeable events (e.g., natural disasters, outages) that may allow a sponsor to suspend, modify, or cancel a promotion.

G

Gambling vs. Sweepstakes

Gambling typically involves prize, chance, and consideration (payment). Sweepstakes remove consideration and are free to enter. Gambling laws do not apply to free sweepstakes.

Geolocation

Technology to determine where a user is located, often used to enforce location-based eligibility.

Giveaway

Common term for a sweepstakes or prize promotion. The legal category depends on how winners are chosen and whether entry is free.

H

Household/Family Restrictions

Limits that may prevent multiple winners from the same household or immediate family during a promotion or time window.

I

Instant Win

A format where entrants find out immediately whether they have won, typically via a random algorithm during entry.

Identification (ID) Verification

Steps taken to confirm a potential winner’s identity and eligibility (e.g., age, residency).

L

Lottery (Illegal Private Lottery)

Has three elements: prize, chance, and consideration. To remain a legal sweepstakes, promotions remove the consideration element (e.g., no purchase necessary).

M

Minor

A person under the age of majority. Minors typically need parental consent or may be ineligible, depending on the rules.

Multiple Accounts

Having more than one account per person. Often prohibited to keep odds fair.

N

No Purchase Necessary

Core sweepstakes principle: you must be able to enter and have equal chance without buying anything.

Notification

How and when a sponsor contacts potential winners (e.g., email, in-app, SMS). Rules define response deadlines.

O

Odds of Winning

Typically stated as dependent on the number of eligible entries received. For first-come distributions, odds depend on speed and availability within the eligible group.

Official Rules / Terms and Conditions

The binding rules that govern a promotion. They control if anything in marketing materials conflicts.

P

PII (Personally Identifiable Information)

Data that can identify a person (e.g., name, email). Handled per the sponsor’s privacy policy.

Privacy Policy

Explains how your data is collected, used, stored, and shared.

Prize

The item, cash, or experience awarded to a winner. May have conditions, substitutions, or expiration dates.

Prize Substitution

The sponsor’s right (if stated in rules) to replace a prize with one of equal or greater value if the original becomes unavailable.

Publicity Release

Permission for the sponsor to use a winner’s name, likeness, or statements for promotional purposes, where lawful.

R

Random Number Generator (RNG)

Software used to produce random outcomes for drawings or instant-win awards.

Release of Liability

A clause where entrants agree the sponsor is not responsible for certain damages or losses related to the promotion.

Residency

Geographic eligibility, often limited to specific countries, states, or localities.

Rollover

When an unclaimed prize is made available again, sometimes to a broader group, subject to the sponsor’s discretion.

ZipSweep note: If the exact winning code is not claimed by 9PM, we may roll the prize over to the entire ZIP code, first come, first served.

S

Skill vs. Chance

Contests rely on skill; sweepstakes rely on chance. The classification affects legal requirements.

Sponsor

The company offering the promotion and prizes. Responsible for Official Rules and prize fulfillment.

State-Specific Restrictions

Certain states have unique requirements or prohibitions that can affect eligibility or prize value.

Sweepstakes

A chance-based, free-to-enter promotion where winners are selected randomly from eligible entries.

Sweepstakes vs. Raffle

Raffles generally sell tickets to raise funds (often by charities) and may require special permits. Sweepstakes are free to enter.

T

Taxes

Winners are usually responsible for any taxes on prizes. In the U.S., prizes of $600 or more are typically reported on IRS Form 1099-MISC or 1099-NEC.

Third-Party Administrator

An external firm that manages the promotion on behalf of the sponsor.

Time Zone / UTC

Official Rules should specify the governing time zone for deadlines. Apps may localize times for your convenience.

Transferability

Whether a winner may transfer a prize to someone else. Often not allowed unless stated.

U

Unsubscribe

Your right to opt out of marketing emails at any time, usually via a link in the email footer.

User ID

A unique identifier tied to your account. May be used in winner selection mechanics.

ZipSweep note: Our daily winning code is a combination of a ZIP code and a unique user ID.

V

Verification

The process of confirming a potential winner’s eligibility and compliance before awarding a prize.

Void Where Prohibited

Standard clause noting that the promotion does not run in places where local law forbids it.

W

Winner List

A list of winners that may be made available upon request, subject to privacy rules and timing.

Winner Selection

How winners are chosen (random draw, instant win, judged). Must match the Official Rules.

Winner Notification

The method and timing used to inform potential winners. Failure to respond in time can lead to forfeiture.

Z

ZIP Code

A 5-digit U.S. postal code used to define geographic areas.

ZipSweep

A free, ad-funded daily sweepstakes built around U.S. ZIP codes. We randomly generate a winning code each day. If the exact winner does not claim by 9PM, we may roll the prize to the entire ZIP code, first come, first served. We are not a lottery and this is not gambling; prizes are funded by advertising. We only use your email for daily reminders and occasional updates and never share your details unless you say it is ok.

Reminder: Always read the Official Rules for any promotion you enter. They define eligibility, timing, odds, prize details, and your responsibilities as a participant.