I am holding a sweepstakes online and i have a legal question can you help?
Oct 25th, 2009 | By admin | Category: UncategorizedDaydreamin’ asked:
I know that holding a sweepstakes in the USA can be illegal, but what if i offered a “FREE” option on my sweepstakes, would that be considered a legal online sweepstakes? The only time the participants would pay is if they wanted to add more entries for prizes. Something like $1.00 for extra entries but FREE for your 1 entry.
PS> I am in Arizona if this matters at all.

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No, that is still illegal. Anything in which a person can pay money to buy a chance to win is a sweepstakes or lottery and that is illegal. Even if you are giving a free entry, the allowance of additional entries for money is against the law.
sweepstakes
TR is almost right.
It’s illegal because paying cash would increase one’s chances of winning. That’s the problem.