Digital promotions are a core marketing lever for driving engagement, capturing zero-party data, and strengthening brand relationships. But when participation increases and technology evolves, so does exposure to risk—making promotions an attractive target for fraud.
Fraud prevention isn’t a secondary concern or a technical detail to address after launch. For promotions to perform as intended, protection must be built in from the start—designed to preserve fairness, accuracy, and trust before issues impact outcomes or the participant experience.
This article explores the fraud risks most likely to undermine digital promotions, why traditional safeguards often fall short, and how Realtime Media (RTM) has and continues to help brands protect campaign integrity at scale through proactive, technology-led fraud mitigation.
Protecting Promotions from the Most Significant Fraud Risks
Fraud in digital promotions has evolved from isolated abuse to coordinated, automated exploitation. Bot networks, AI-driven scripting, and eligibility manipulation are now designed to scale quickly—often outpacing manual reviews or static safeguards. As promotions grow in visibility and volume, a small set of recurring, high-impact risks tends to surface across industries.
- Bot and automated entry abuse can flood promotions with illegitimate traffic, skew results, and block real users from engaging.
- Scripting-driven registrations, involving the mass creation of fake accounts, dilute data quality and “real” entries and increase prize and fulfillment costs.
- Eligibility circumvention, such as bypassing age, geographic, or purchase requirements, introduces compliance and legal risk.
- Prize abuse, including repeat claims or resale of rewards, undermines fairness and brand trust.
Addressing these risks effectively requires more than basic, point-in-time checks such as reCAPTCHA or static rules. As promotions scale, fraud prevention must operate continuously and adapt in real time—an approach that informs how RTM safeguards promotions.
Fraud Prevention Starts Before Launch
Fraud prevention is most effective when technology is paired with an intentional campaign design that helps to lower fraud risk. Structure and planning play a critical role in reducing exposure before a promotion ever goes live.
Every RTM promotion includes a pre-launch risk assessment that evaluates how rules, entry methods, limits, and prize structures may be targeted for abuse. These insights inform campaign design choices that strengthen fraud protection without compromising marketing goals.
This includes setting appropriate entry limits, structuring prize pools thoughtfully, and designing user flows that discourage automated exploitation—reducing risk proactively rather than reacting after launch.
RTM’s Integrity Engine: Best-in-Class Fraud Protection
RTM’s proprietary fraud mitigation framework is designed specifically for digital promotions, where high traffic, limited entry windows, and valuable prizes create unique fraud risks. Instead of relying on one-time checks or a single point of defense, it applies a three-layered approach to detect and mitigate abuse in real time.
1. Advanced Bot and Abuse Mitigation
The first layer focuses on identifying and blocking automated traffic before it can impact campaign performance. Specialized heuristics and AI-driven detection models analyze traffic patterns to distinguish human behavior from scripted or automated activity.
This includes identifying high-velocity entries, non-human interaction signals, and coordinated attempts to exploit entry mechanics—stopping abuse early while keeping promotions accessible to legitimate participants.
2. Behavior-Based, Low-Friction Protections
Traditional fraud tools often rely on visible challenges—such as CAPTCHA—that can frustrate users and hurt conversion rates. RTM takes a different approach by using behavior-based analysis and CAPTCHA-less human validation.
This layer evaluates how users interact with the promotion, enabling risk-based decisions that preserve a smooth experience for legitimate participants while applying additional scrutiny only when needed.
3. Live Fraud Detection and Risk Intervention
Fraud does not always occur at the point of entry. Abuse can surface during registration, gameplay, or prize redemption. RTM’s Integrity Engine continuously monitors activity throughout the promotion lifecycle to flag suspicious behavior as it occurs.
This enables rapid intervention—blocking activity, flagging entries for review, or applying additional validation—before fraud escalates into larger operational or fulfillment issues.
What This Means for Marketers
For marketers planning digital promotions, fraud is an important consideration—but it should not be a deterrent. With the right strategy and safeguards in place, brands can confidently launch high-impact promotions that drive engagement, data capture, and measurable business results.
- Fraud prevention should be considered part of promotion strategy, not a backend or post-launch concern.
- Real-time, behavior-based protection reduces fraud risk without adding participant friction.
- Campaign rules, entry limits, and prize structures directly influence exposure and fulfillment risk.
- Embedded, always-on security scales more effectively than bolted-on tools.
Looking Ahead
As fraud tactics continue to evolve, promotion security must evolve with them. A reactive approach is no longer sufficient. Brands need proactive, integrated fraud mitigation that protects campaigns quietly and continuously—without disrupting participation.
RTM’s Integrity Engine reflects that philosophy: security that is built in, continuously monitored, and aligned with how real consumers engage with promotions.
If you’re planning a digital promotion and want to understand how fraud prevention fits into your strategy, RTM can help. Interested in learning more about how we support secure, compliant digital promotions? Get in touch with us today!
Contests and sweepstakes are powerful tools for audience engagement and achieving marketing goals.
In the U.S., both federal and state laws govern these promotions, with some states imposing unique requirements that can significantly impact how promotions are structured. This guide provides an overview of states that align with general federal guidelines versus those with specific, additional regulations.
Looking for Specific State Laws?
Our expert legal team can guide you to ensure that your promotion is fully compliant with state and federal laws.
Key Regulations Every Nationwide Promotion Must Follow
Understanding the foundational regulations is the first step to a legally compliant sweepstakes or contest:
Sweepstakes
Based on chance, sweepstakes must comply with strict legal guidelines to avoid being classified as illegal lotteries.
Contests
These are skill-based and have distinct legal criteria focused on clear, fair judging standards
In your sweepstakes official rules, it’s also essential to include
“no purchase necessary language” and offer an alternative method of entry (AMOE), where needed.
Your Guide to State-Specific Sweepstakes and Contest Laws
State-Specific Promotion Law
Alabama
Colorado
Hawaii
Kansas
Massachusetts
Montana
New Mexico
Oklahoma
South Dakota
Virginia
Alaska
Connecticut
Idaho
Kentucky
Michigan
Nebraska
New York
Oregon
Tennessee
Washington
Arizona
Delaware
Illinois
Louisiana
Minnesota
Nevada
North Carolina
Pennsylvania
Texas
West Virginia
Arkansas
Florida
Indiana
Maine
Mississippi
New Hampshire
North Dakota
Rhode Island
Utah
Wisconsin
California
Georgia
Iowa
Maryland
Missouri
New Jersey
Ohio
South Carolina
Vermont
Wyoming
Alabama
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Alaska
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Additional registration requirements for certain Contests. Otherwise, contests and sweepstakes for this state are required to follow the same laws found throughout the United States
Arkansas
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
California
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
In Colorado, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Connecticut
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Delaware
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered 7 days prior to the start of the sweepstakes. In some instances, the Sponsor may have the right to a waiver in lieu of obtaining a bond. In addition, sponsors are required to file a final winners list with the state.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Georgia
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Hawaii
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Idaho
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Illinois
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Indiana
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Iowa
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kansas
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kentucky
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Louisiana
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Maine
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Specialized trade practices apply for tobacco-related promotions. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Asking entrants to visit a store is technically classified as consideration and is prohibited for sweepstakes.Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Minnesota
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Mississippi
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Missouri
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Montana
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Nevada
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
New Hampshire
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Specialized trade practices apply for tobacco alcohol-related promotions. Contests and sweepstakes for this state are required to follow the same laws found throughout the United States
New Mexico
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered (technically 30 days) prior to the start of the sweepstakes. In addition, sponsors are required to provide a final winners list.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
North Carolina
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.
Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Ohio
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oklahoma
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oregon
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Pennsylvania
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Sweepstakes in which a retail establishment offers a prize in order to promote its retail business, where the total value of the prize offered is more than $500, must be registered. No bond is required.Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
South Carolina
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
South Dakota
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Prohibits requiring any sweepstakes winner to submit a publicity release.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
A sponsor may not automatically enter a consumer into a promotion when making a purchase without a clear, free, alternate method of entry.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Utah
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. In addition, sponsors cannot require consumers to pay for return postage if they request information about your promotion, such as a list of winners. Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Asking entrants to visit a store is classified as consideration and is prohibited for sweepstakes. Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States.
Washington
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
West Virginia
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wisconsin
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wyoming
general federal guidelines
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Select a state to view specific laws for that area.
general federal guidelines
In this guide, we highlight key states with notable regulatory distinctions.
Some states have different exceptions or laws regarding contest and sweepstakes regulations. The states that have the most prominent exceptions are below:
states with additional requirements
Arizona Contest & Sweepstakes Laws
Additional registration requirements for certain Contests. Otherwise, contests and sweepstakes for this state are required to follow the same laws found throughout the United States
Colorado Contest & Sweepstakes Laws
In Colorado, contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Florida Contest & Sweepstakes Laws
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered 7 days prior to the start of the sweepstakes. In some instances, the Sponsor may have the right to a waiver in lieu of obtaining a bond. In addition, sponsors are required to file a final winners list with the state.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Maryland Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Massachusetts Contest & Sweepstakes Laws
Specialized trade practices apply for tobacco-related promotions. Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Michigan Contest & Sweepstakes Laws
Asking entrants to visit a store is technically classified as consideration and is prohibited for sweepstakes.
Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Nebraska Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
New Jersey Contest & Sweepstakes Laws
Specialized trade practices apply for tobacco alcohol-related promotions. Contests and sweepstakes for this state are required to follow the same laws found throughout the United States
New York Contest & Sweepstakes Laws
For sweepstakes offering total prize values that exceed $5,000, the sweepstakes final rules must be bonded and registered (technically 30 days) prior to the start of the sweepstakes. In addition, sponsors are required to provide a final winners list.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
North Dakota Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. Most states allow purchase requirements within contests where winners are chosen based on skill or criteria.
Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Rhode Island Contest & Sweepstakes Laws
Sweepstakes in which a retail establishment offers a prize in order to promote its retail business,
where the total value of the prize offered is more than $500, must be registered. No bond is required.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Tennessee Contest & Sweepstakes Laws
Prohibits requiring any sweepstakes winner to submit a publicity release.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Texas Contest & Sweepstakes Laws
A sponsor may not automatically enter a consumer into a promotion when making a purchase without a clear, free, alternate method of entry.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States
Vermont Contest & Sweepstakes Laws
Contests and sweepstakes are prohibited from requiring entrants to make a purchase or forms of consideration to enter a promotion. In addition, sponsors cannot require consumers to pay for return postage if they request information about your promotion, such as a list of winners. Outside of this contests and sweepstakes are required to follow the same laws found throughout the United States
Virginia Contest & Sweepstakes Laws
Asking entrants to visit a store is classified as consideration and is prohibited for sweepstakes. Specialized trade practices apply for tobacco-related promotions.
Outside of this, contests and sweepstakes are required to follow the same laws found throughout the United States.
states with no additional requirements
Alabama Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Alaska Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Arkansas Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
California Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Connecticut Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Delaware Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
District of Columbia Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Georgia Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Hawaii Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Idaho Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Illinois Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Indiana Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Iowa Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kansas Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Kentucky Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Louisiana Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Maine Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Minnesota Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Missouri Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Montana Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Nevada Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
New Hampshire Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
New Mexico Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
North Carolina Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Ohio Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oklahoma Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Oregon Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Pennsylvania Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
South Carolina Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
South Dakota Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Utah Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Washington Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
West Virginia Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wisconsin Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.
Wyoming Contest & Sweepstakes Laws
Contests and sweepstakes for this state are required to follow the same laws found throughout the United States.