Sweepstakes are very well known in countries like the United States and United Kingdom. They are essentially lotteries that are always free to enter. In the United Kingdom, they are usually referred to as prize drawings.
The prizes that you can get win from a sweepstakes widely vary, from cars to vacations, cash or even cameras. The prizes are often related to the company who is sponsoring the sweepstakes. Sponsors are mentioned on the entry form found on sweepstakes sites or advertisements.
The Economics of Sweepstakes
You may be wondering how the prizes in sweepstakes are paid for. Sweepstakes are mostly sponsored by the businesses who receive the promotional benefits or offers from those sweepstakes. For example, participants might join their mailing list when entering the sweepstakes. Other sweepstakes encourage you to opt-in to their magazine subscriptions so that the company or organization sponsoring the sweepstakes can benefit from it.
Legal Issues Regarding Sweepstakes
Sweepstakes are closely followed in several countries. In the United States, most of the states have specific rules for sweepstakes. In addition, national sweepstakes must always comply with each of the states’ laws. In Canada and other countries, the sweepstakes must be a game of skill to avoid being seen as gambling. They usually require the entrants to solve some mathematical puzzle.
Well Known Sweepstakes
In the United States there are well known sweepstakes which are conducted on a regular basis. Some of the largest sweepstakes in the United States are the Reader’s Digest Sweepstakes, American Family Publishers and Publisher’s Clearing House. Other large sweepstakes includes those sponsored by top companies like Pepsi and McDonalds.
Many sweepstakes can be entered easily by mailing a postcard with your name and address to the mentioned location. Some sweepstakes can be entered easily through automated means. Other contests allow entry via their website, which is even more convenient.