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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
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.
I'm thinking of starting a sweepstake on how long it'll be before the cats start clawing at them and bring one down.
New sweepstake companies, such as Webstakes.com and MyPoints.com, entice consumers with free prizes and special offers.
Several of the men and two or three of the girls thought it a capital idea, and a sweepstake was arranged.

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