Businesses have used sweepstakes for years as a marketing sales tool to raise interest and build enthusiasm for a particular product or brand. The term sweepstakes, which was made popular throughout the world by the Irish Sweepstakes in the 1930's, originated in horse-racing. Each entrant would put up a “stake” and the winner would “sweep” the stakes. It's a somewhat simplistic understanding but it has stood the test of time, developing into an industry where thousands of “sweepstakes” are held each year.
Sweepstakes have become so popular that many of us have created a hobby from our interest fueling the development of another branch of the sweepstakes industry. Magazines, books and mailing lists with many tips and suggestions of how to better our chances at winning are readily available today and many sweepstakes hobbyists find the computer and internet an invaluable addition to their “sweepstaking repertoire”.
The most famous sweepstakes in North America is Publishers Clearing House. This type of firm relies on the sweepstakes to sell everything from magazines and books to DVD's and specialty gifts. Reader's Digest is another firm that uses sweepstakes for attracting customers. While no purchase is required from either of these, entrants are strongly encouraged to purchase magazine subscriptions. Sweepstakes are also used by the fast food industry to boost their patronage. The most popular of these is McDonald's Monopoly game with instant win tickets and collectible game pieces and prizes varying from free food to millions in cash and merchandise.
In most sweepstakes, prizes range in value from less than one dollar to more than one million dollars in the form of cash, cars, homes, electronics, etc. and have varying eligibility requirements that can be regulated by age and geographical factors. Most sweepstakes are open to “sweepers” (the term used to describe sweepstakes enthusiasts) eighteen years and older. However, there are many sweepstakes open to children aged thirteen to seventeen.
There are definite differences between contests (giveaways) and the sweepstake. Sweepstakes are easier and quicker to enter than contests. Requiring a purchase for entrance into a sweepstakes is prohibited by law; whereas, for a contest there may be a fee or an actual purchase needed and proof of purchase required, which is usually in the form of the product's UPC (barcode) label.
Sweepstakes are also very heavily regulated. The United States, Canada and individual states have laws governing sweepstakes. The U.S. Federal Trade Commission has some authority over sweepstakes and sweepstakes scams in the United States. Many of these rules and regulations depend on where the entrant lives. For example, in Canada and Europe entrants are required to solve a math puzzle. This contest of skill overcomes classification requirements that would label it a form of gambling. In the United States, residents of Tennessee are not allowed to participate in sweepstakes that are sponsored by manufacturers of wine and liquor by the Tennessee Alcoholic Beverage Commission. And, as usual, taxes must be paid on all winnings as a form of income.
While sweepers may have to seemingly jump through a few hoops now and then in order to comply with entry requirements, the pay offs far outweigh the draw backs. I, for one, will always return my Publishers Clearing House entry; and I will never miss the opportunity to visit the local McDonald's when the Monopoly game is in play. You never know. It could happen.
