In the United States consumer sales promotions known as sweepstakes or simply sweeps (both single and plural) have become associated with marketing promotions targeted toward both generating enthusiasm and providing incentive reactions among customers by enticing consumers to submit free entries into drawings of chance (and not skill) that are tied to product or service awareness wherein the featured prizes are given away by sponsoring companies. Prizes can vary in value from less than one dollar to more than one million U.S. dollars and can be in the form of cash, cars, homes, electronics, etc.

Sweepstakes frequently have eligibility limited by international, national, state, local, or other geographical factors.

Sweepstakes are often referred by marketing promoters as second-chance sweepstakes when utilized in conjunction with the awarding of unclaimed prizes during instant-win promotions.

Basics

Sweepstakes are generally easier and quicker to enter than contests, and sweepstakes are also legally different from contests in the United States as sweepstakes promotions are prohibited from requiring a purchase to enter. Consumer promotions advertised as contests, however, can require an entry fee or proof of purchase (usually in the form of submitting an original proof-of-purchase label or UPC code found on the sponsor's product packaging along with a mail entry). The reason why contests are treated differently is that the winners are not chosen by chance but by an element of skill. Although some sweepstakes ask for a proof of purchase or UPC code, the sponsors must provide an alternate method of entry if they do so. Sweepstakes official rules can specify daily, weekly, monthly, one-time, or unlimited entry by participants.

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 (U.K.) is probably a back-formation; compare the Belmont Stakes.

Marketing

Sweepstakes with large grand prizes tend to attract more entries regardless of the odds of winning. Therefore, the value of smaller prizes usually total much less than that of the top prize. Firms that rely on sweepstakes for attracting customers, such as Publishers Clearing House and Reader's Digest, have also found that the more involved the entry process, the more entrants, in a similar way to casinos inventing games that appear to rely partly on skill.Fact: date=September 2008

Sweepstakes in the United States