Overview of Sweepstakes Laws

Federal and state laws prohibit private parties from running lotteries. A lottery is generally defined as a promotion that includes three elements: (1) a prize (2) that is awarded on the basis of chance (3) to someone who was required to pay consideration.

What is consideration? While the classification varies by state, requiring a payment, purchase or donation is clearly consideration. Under some statutes, consideration is defined more broadly and can include actions that result in a commercial benefit to a sponsor (in this case HSI Pre Paid Solutions).

In a sweepstakes, prizes are awarded on the basis of chance, such as random drawings, seeded game pieces or scratch-off devices. Because the elements of prize and chance are present in a sweepstakes, a sponsor cannot require any consideration as a condition of entry. If a sweepstakes contains an element of consideration (e.g. paying for a ticket), a sponsor may be able to negate that element by adding a free method of entry (e.g. offering a free ticket request online).

Federal Sweepstakes Laws govern the sale and purchase of HSI Pre-Paid Solutions. A customer must be able to win without purchasing a ticket, and the product offered (emergency calling card) must be a true product or service. HSI's phone cards are a "clean", single-use phone card with no connection fees. You can feel confident that when partnered with HSI, you are meeting all the requirements of the federal Sweepstakes Laws.

Sweepstakes are LEGAL in most states! This is NOT a lottery or a state sponsored game of chance. Just like Coke™, Pepsi™, McDonald's™ and other companies' sweepstakes, there is "no purchase necessary" to participate in the sweepstakes game! It is FREE. 

Below are some case filings you may find interesting:

Looks like a lottery -- but isn't, judge rules
North Carolina State Ruling
South Carolina State Ruling

RULES

HSI Pre-Paid Solutions Sweepstakes Rules

Click here to open as PDF to print

A.)           NO PURCHASE NECESSARY TO PLAY OR WIN GAME.  To receive a game piece online go to Contact Us and fill out the Free Entry form (limit one per day per address) or send a self-addressed envelope to HSI PrePaid Solutions, PO Box 604, Long Beach, MS 39560 (limit one per day per address). All requests must be received 30 days prior to game end date.

B.)           CONDITIONS OF ENTRY.  Sponsors, partners, employees, directors, etc. are not responsible for claims which are late, stolen, damaged, etc. Sweepstakes prizes not purchased directly from HSI PrePaid Solutions or an authorized Dealer in good standing are null and void. Should any sweepstakes piece be defective through human, electronic, mechanical or any other error, no more than the maximum prize from the Prizes and Odds Table, will be given for the specific Brand error occurred. HSI Pre-Paid Solutions in sole discretion reserves the right to cancel any Brand(s) should error occur. Any dispute regarding the authenticity of a game piece shall be determined by HSI PrePaid Solutions. The decision will be finial and no other course of action will be accepted.

C.)           ELIGIBILITY. HSI PrePaid Solutions Sweepstakes is open to individuals who are 18+ years old and who are legal residents of the United States. This Sweepstakes is void where prohibited by state, local or federal law. Sponsors, partners, employees, and directors are not eligible for any prize. By participating, you agree to these Official Rules and to the decisions of HSI PrePaid Solutions which are final and binding in all respects.

D.)           HOW TO PLAY GAME. During the Promotional Game Period if you purchase a pre-paid phone card for making long distance calls from a participating retailer, you will receive a free sweepstakes game piece. Free game pieces can be received by mail. Simply follow the instructions on our web site or on the back of our pre-paid phone cards. Instant Winners: Instant winners are any winner of prizes up to $400; any prize over this amount is considered a Grand Prize and must be paid directly by HSI PrePaid Solutions, not the retail location where purchased. Grand Prize Winners must report a winning game piece to HSI PrePaid Solutions within 48 hours of purchase. Grand Prize Winners are required to provide the valid game piece, sign a  publicity wavier and release, sign any tax documentation necessary (W-9), provide proper identification with social security number and take a photo with payment at the retail location where the phone card was purchased. Winners are solely responsible for paying all applicable local, state and federal taxes related to any payment of any prize. Unclaimed prizes will be forfeited.

E.)           Winners List.  For the names of past Grand Prize Winners please send written a request to HSI PrePaid Solutions or visit our online Past Winners Gallery.

F.)           Odds & Prize Tables. All odds and prize tables are available by mail or on the HSI PrePaid Solutions web site.

G.)          Limitations of Liability:  Participants assume all liability or damage caused or claimed by his or her participation in this sweepstakes. One releases and holds harmless HSI PrePaid Solutions, its partners, employees, officers, affiliates, etc. against any and all claims, whether winner or not. The released parties assume no responsibility for any injury or damage to participants or to any other persons or their computer/software that may result in downloading any information from www.hsisweepstakes.com .

H.)          Contact Information: HSI PrePaid Solutions, PO Box 604, Long Beach, MS 39560.

THIS IS NOT A STATE GAME OF CHANCE OR LOTTERY.

Printable Retail Forms

Retailers: Click the links below to download our Free Entry Form and/or Redemption Log!

Prize Redemption Log

Free Entry Form

Prizes & Odds