“You could win this house!”... or maybe not. Ads like this for essay contests – promising to give away houses, businesses and other property based upon the contestant’s writing skill – have become a common sight. Is it as simple as it sounds? Not really.
In a typical contest, a “small fee” of $100 or so is charged to enter. Contestants then write an
essay of about 250 words on “why it would be nice to own a house in beautiful ________, Washington,” and win their
chance at a dream house. When enough entries are received, the prize is supposed to be awarded.
It may sound like a neat idea, but we don’t know of any houses that have actually been given away in Washington.
Usually there aren’t enough contestants to pay for the house, so the contest is cancelled or postponed to allow for
more entries.
These contests are not regulated as gambling. There is a tremendous potential for fraud in these contests. Someone could collect all of the money and fail to give away the house. Or, they could give it to a relative or someone who has paid them on the side. The only reason these events are staged as essay contests and not raffles is that it takes them beyond the jurisdiction of the Gambling Commission. However, that doesn’t mean the Attorney General’s Office, or any consumer who suffers economic damages, can’t take action if the contest is conducted in an unfair or deceptive way.
One sure tip-off that an essay contest is not completely on the up and up: a sponsor that claims government approval. Although the Attorney General’s Office and the Gambling Commission are often asked whether or not these contests are legal, they do not approve, license or endorse them. If the contest sponsor is implying they have government approval or a license, they are not being honest.