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What is a sweepstake?

What is a sweepstake? Here are some definitions.

Noun
  1. A lottery in which the prize or prizes constitute all the money paid by the participants.
  2. (US) A prize draw.
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Examples
Out of courtesy to him I took a ticket in a sweepstake in which he was concerned, but in which I felt no interest.
New sweepstake companies, such as Webstakes.com and MyPoints.com, entice consumers with free prizes and special offers.
Back in the old days, when you entered a horse racing sweepstake you knew that only the person who drew the winning horse actually won anything.
With modest knowledge of football form, his computer model was originally built to help him win an office sweepstake.
There will be a sweepstake, raffles, a great atmosphere, and all the profits will go to the club.
Albert took a deep breath and answered as though announcing the result of a sweepstake.

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