A contest is that event in which there is a competition between two or more than two players or teams. The winner team gets reward or a prize while speakstakes are the prizes given to the winner to perform some sort of publicity of the products of the company. The first sweepstake was Irish hospital's sweepstack, came in 1930's to collect money for hospitals. In this sweepstake, horse races were organised in Ireland to determine the winner of the sweepstake.
The name sweepstake originated from this horse race. In this game each player had to put a stake in his hand and to become the winner the player had to sweep all the stakes.
The sweepstake became very popularized at that time because lotteries were banned at that time. After that many sweepstakes started to raise fund for publicity or for charities.
Sweepstakes are easier to play. They are fundamentally different from contests because in these sweepstakes the person need not to purchase something for participating in the game.
There are various type of sweepstakes in U.S.A. like American Family Publisher sweepstakes and Reader's Digest sweepstakes. McDonald's monopoly promotion and Pepsi Stuff promotions are also a type of sweepstake. Now there are online sweepstakes available on the internet. Now there are various online directories and services which make their members and offer various types of online sweepstakes.
United Kingdom Gambling Act -2005 is a new regulatory act for gambling contests in Britain. This act is about the regulation of the advertisement of gambling contests and products from sept 2007. Gambling which actually takes place in non-European Economic Area (EEA) can not be advertised in U.K.