What is a Sweepstakes?
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A Sweepstakes is technically a lottery in which the prize is financed through the tickets sold. In the United States the word has become associated with promotions where prizes are given away for free. In other words, they specifically do not require a purchase to enter. (these are called prize draws in the United Kingdom). Sweepstakes sponsors are very careful to dis-associate themselves from any suggestion that players must pay to enter, as this would bring them into conflict with lottery laws. The popularity of the term sweepstakes may derive from the Irish Sweepstakes, which was very popular throughout the world from the 1930s to the 1980s.
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Sweepstakes are also used by fast-food restaurants to boost business. One of the
most popular has been the McDonald's Monopoly promotion. Soda companies also run
sweepstakes, including the Pepsi Billion Dollar Sweepstakes game and the Pepsi
Stuff game allowing one to accumulate points and purchase promotional items
(which offered a Harrier fighter jet for a certain number of points, much lower
than the cost of the plane, and which an entrant unsuccessfully sued Pepsi for
when he amassed them [1]).
Sweepstakes typically involve aggressive enticements to enter a contest for
fantastically large prizes; there should be no cost to the entrant to enter for
the prize, with the exception of possibly being placed on a promotional mailing
list. Winners should also not be required to pay a fee of any type to receive
their prize.
Among the commonly known sweepstakes in the United States are the American
Family Publishers Sweepstakes, Publisher's Clearing House Sweepstakes and
Reader's Digest Sweepstakes, each of which strongly persuade entrants to
purchase magazine subscriptions by placing stickers on contest entry cardstock,
while promising multi-million dollar winners who will be "announced on TV". The
American Family Publishers sweepstakes has traditionally used paid
advertisements during NBC's The Tonight Show to announce its grand prize winners
(for many years, its celebrity spokesman was Ed McMahon).
Because of the perceived deceptive nature of sweepstakes, they are heavily
regulated. The US, Canada, and individual US states all have laws covering
sweepstakes, resulting in special rules depending on where the entrant lives.
Notably, Canada and several European countries require entrants to solve a
mathematical puzzle, making it a contest of skill, in order to overcome
requirements that would classify sweepstakes as a form of gambling.
Sweepstakes must therefore be carefully planned to not only comply with local
laws but curtail forms of entrant fraud and abuse. Before home computers were
popular, a common method of entry was a mailed index card with the entrant's
name and address. Massive computer-printed entries made a new requirement of
"hand-printed". Laser printers able to mimic ink pen writing are also a problem
for sponsors. Entering sweepstakes by mail is still very popular, although many
also enter online as well. From time to time, mistaken sweepstakes design leads
to more winning entries than intended, and publicity fallout for the sponsoring
brand can be immense.
There is also a tradition of office sweepstakes, which usually take place over
large sporting events (Melbourne Cup, Grand National, World Cup etc), where you
put in a stake into the pot, and get a horse/team drawn out of the hat. The
winner then takes the pot.
Etymology
The term originated in horse-racing, where each entrant would put up a stake,
and the winner would sweep all stakes. The non-plural form sweepstake is
probably a back-formation; compare the Belmont Stakes.
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