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The difference between raffle and sweepstakes primarily lies in the method of entry and the requirement of purchase. A raffle typically requires participants to buy tickets for a chance to win a prize, making it a form of gambling. In contrast, sweepstakes allow individuals to enter for free, often by submitting their information or completing a task. Understanding the difference between raffle and sweepstakes is essential for both organizers and participants, as it affects the legal regulations and the nature of the competition.