Legal Definitions - sweepstakes

A sweepstakes refers to a contest or competition where prizes are awarded based purely on chance, typically through a random drawing or selection process, rather than skill. Historically, the term also described a race where the winner received the entire sum of money contributed by all participants as their prize. In contemporary usage, sweepstakes are frequently employed for promotional purposes, and specific laws govern their conduct to prevent fraudulent schemes.

• Example 1: Imagine a small, annual community event where local farmers enter their prize-winning livestock into a "Best of Breed Sweepstakes." Each farmer pays a modest entry fee, and the total amount of these fees is pooled together to form the grand prize. The owner of the animal judged to be the best in its category then wins this entire pooled sum.

  Explanation: This scenario illustrates the historical meaning of a sweepstakes, where competitors contribute "stakes" (entry fees), and the winner collects the entire accumulated prize fund.

• Example 2: A major electronics retailer launches a "Holiday Tech Giveaway Sweepstakes" to boost customer engagement during the festive season. Customers can enter by visiting the retailer's website and submitting an online form, or by sending a postcard with their details. No purchase is required to participate. After the entry period closes, the retailer conducts a random drawing from all eligible entries to select one grand prize winner, who receives a complete home theater system.

  Explanation: This exemplifies the most common modern use of a sweepstakes as a promotional tool. Prizes are awarded based solely on chance (random selection) from a pool of entries, without requiring participants to make a purchase or demonstrate any skill.

• Example 3: A popular travel blog announces a "Dream Vacation Sweepstakes" to celebrate reaching a milestone number of subscribers. To enter, individuals simply need to sign up for the blog's email newsletter. At the end of the month, the blog randomly selects one subscriber from its entire list of new and existing subscribers to win an all-expenses-paid trip to an exotic destination.

  Explanation: This further demonstrates a modern sweepstakes, where entry is often tied to a marketing objective (like gaining newsletter subscribers) and the winner is chosen through a random process, emphasizing that the outcome is determined by chance rather than skill or purchase.