Disclaimer: This post is for general informational purposes only and should not be considered legal advice. Laws around contests and giveaways can vary by state and situation. If you’re planning a promotion, it’s always a good idea to consult with a qualified attorney or review official government resources.
Hosting a giveaway or contest can be a fun and effective way to promote your vacation rental.
Photo contests, seasonal giveaways, and “win a free stay” promotions are all popular in the short-term rental space—and for good reason. They can increase engagement, grow your audience, and create excitement around your property.
But before you launch one, there’s something important to understand:
Not all contests and giveaways are automatically legal.
And in some cases, a well-intentioned promotion can cross into territory that’s regulated—or even prohibited—depending on how it’s structured.
The good news? This doesn’t have to be complicated. But it does require a little awareness.
The Key Concept: Chance, Prize, and Consideration
At a high level, U.S. laws around promotions are designed to prevent illegal lotteries.
A promotion may be considered an illegal lottery if it includes all three of these elements:
- Prize – something of value (like a free stay)
- Chance – a random winner is selected
- Consideration – something of value is required to enter (often money, but not always)
If all three are present, that’s where legal issues can arise.
This is the piece that often catches vacation rental owners off guard.
For example:
If you run a giveaway where someone must book a stay (purchase) to be entered for a chance to win a free night…
That could be considered a lottery in many states.
And lotteries are heavily regulated (and often restricted) unless run by the state.
The Simple Rule to Remember
If you take one thing from this post, let it be this:
Never require a purchase to enter a giveaway.
This is why you’ll often see the phrase:
“No purchase necessary”
You may also need to offer an alternative method of entry (AMOE)—for example, allowing someone to enter by submitting a form instead of making a purchase.
This removes the “consideration” piece and keeps your promotion in safer territory.
Contests vs. Giveaways (What’s the Difference?)
There are generally two common types of promotions:
1. Giveaways / Sweepstakes
- Winners are chosen randomly (chance)
- No purchase required
- Often used for social media promotions
2. Contests
- Winners are chosen based on skill (judging criteria)
- Examples: photo contests, caption contests, recipe contests
This is why photo contests are so popular in the vacation rental space.
If you’re choosing a winner based on criteria (creativity, storytelling, quality), rather than random selection, you’re removing the “chance” element.
That said, even contests should be structured clearly and fairly, with defined rules.
State Laws Can Vary
This is where things get a little more nuanced.
While there are general federal guidelines, state laws can differ significantly—especially when it comes to registration, disclosures, and prize values.
A few helpful starting points:
- The Federal Trade Commission provides general guidance on advertising and promotions
- The Federal Communications Commission outlines rules related to contests and disclosures
- Many states publish their own guidelines (for example, New York and Florida have additional requirements for certain sweepstakes)
A helpful overview resource:
👉 https://www.ftc.gov/business-guidance
👉 https://www.fcc.gov/consumers/guides/contests-and-sweepstakes
For state-specific information, this is a useful starting point:
👉 https://www.usa.gov/state-consumer
As a general rule:
If your promotion is open to people in multiple states (which most online giveaways are), you need to be mindful of broader compliance.
Social Media Platform Rules Matter Too
In addition to legal considerations, each platform has its own promotion guidelines.
For example:
- Meta requires that you clearly state rules and acknowledge that your promotion is not affiliated with the platform
- Instagram and Facebook both require you to take responsibility for lawful operation of your promotion
You can review their guidelines here:
👉 https://www.facebook.com/help/instagram/179379842258600
This is often overlooked—but it’s an important layer.
Safer, Simple Promotion Ideas for Vacation Rental Owners
If all of this feels a little intimidating, don’t worry.
There are still plenty of ways to run engaging promotions without overcomplicating things.
Some safer approaches include:
- Offering a free stay with no purchase required to enter
- Running a photo or story-based contest with clear judging criteria
- Giving away a local experience bundle or welcome basket
- Partnering with local businesses for a collaborative giveaway
The key is keeping it simple, transparent, and fair.
A Thoughtful Approach Goes a Long Way
This isn’t about scaring you away from running promotions.
It’s about helping you do them well.
A good giveaway should:
- Be easy to understand
- Be accessible to enter
- Clearly explain how a winner is chosen
- Follow basic guidelines to protect both you and your guests
When done right, these promotions can be a great way to build excitement and connection around your rental.
A Simple Way to Move Forward
If you’re thinking about running a contest or giveaway, start with a few simple questions:
- Am I requiring any kind of purchase to enter?
- How is the winner being selected?
- Are my rules clear and easy to understand?
- Have I checked basic guidelines for my state and platform?
You don’t need to become an expert in legal language.
You just need to be aware enough to avoid common mistakes.
Because the goal isn’t just to run a fun promotion—it’s to do it in a way that protects your business and builds trust with your audience.
Frequently Asked Questions
1. Why can’t I require a booking to enter my giveaway?
Requiring a purchase (like booking a stay) for a random drawing turns your giveaway into an illegal lottery. To keep it legal, entry must be completely free.
2. What’s the difference between a giveaway and a contest?
- Giveaway (Sweepstakes): Winner is chosen by random chance. No purchase allowed.
- Contest: Winner is chosen by skill (e.g., best photo). No random luck involved.
3. How do I promote bookings while running a legal giveaway?
Use an Alternative Method of Entry (AMOE). You can reward bookings with entries, but you must also let people enter for free (like filling out a basic form).
4. Do I only need to worry about my own state’s laws?
No. Since online promotions cross state lines, you have to comply with federal rules and other states’ laws. States like Florida and New York have particularly strict rules.
5. Can I just post my giveaway on social media?
Only if you include a disclaimer. Platforms like Instagram and Facebook require you to explicitly state that your giveaway is not sponsored or endorsed by them.