Abstract: A coupon and sweepstakes dispensing system and method of use. The method and system include an electronic kiosk at which a coupon is purchased by a customer. The coupon includes a free sweepstakes entry. The coupon includes a redemption value N-times the purchase price. The free sweepstakes entry provides a chance to win items with redemption values M-time purchase price of the coupons. The methods and system described herein help retailers and advertisers reach consumers with their product offers. Shoppers select to purchase coupons for a nominal fee for the time saved, convenience, value and variety, plus automatically, are entered into a free sweepstakes that can bring cash or credit at the retail establishment where they are shopping.