Winning a French-door refrigerator or a front-load washer-dryer pair feels like hitting the jackpot — the ARV printed in the rules often reads $2,500 to $4,000. But a large appliance is not a gift card. Before you celebrate, run the math on what it actually costs you to get that machine installed and running, because the gap between "won" and "in my kitchen" is where these prizes quietly drain your wallet.
Delivery, install, and haul-away are usually on you
Read the affidavit carefully: nearly every appliance sweepstakes awards the unit FOB (freight on board) or "prize only", meaning the sponsor ships to a freight terminal or curb and you handle everything after. Threshold delivery — where the truck stops at your door — is common; in-home delivery, hookup, and old-unit haul-away are extra. Retailers like Lowe's and Home Depot bundle basic delivery free on purchases, but a prize isn't a purchase, so expect to pay: figure $100–$200 for delivery, and more for a stair-carry or a tight urban walk-up.
Installation is the bigger surprise. A washer needs steel braided hoses and a working drain; a gas dryer or gas range needs a licensed installer and a new flex connector — plumbers and gas fitters routinely charge $150–$400. A built-in dishwasher or an over-the-range microwave means electrical and cabinetry work. Add haul-away of your old appliance ($25–$50 per unit, or a dump fee if you DIY), and a "$3,000" fridge can cost you $300–$600 out of pocket just to use.
Measure the opening before you get attached
Appliances are sized for standard rough openings, and prizes come in one size — the sponsor's spec, not yours. A counter-depth vs. standard-depth fridge is a 6-inch difference in how far it juts into your kitchen. Standard fridge widths run 30", 33", and 36"; if the prize is 36" and your cabinet cutout is 33", it does not fit, full stop. Measure the width, height, and depth of the opening, plus door-swing clearance and the hallway and doorway the unit must travel through to get there — a common failure point is a 36" box that won't clear a 32" front door.
Then check hookups. A gas dryer or range is worthless if your laundry room only has a 240V electric outlet, and vice versa. Front-load washers need a level floor and often a pedestal (a $200+ accessory) to be usable at a comfortable height. If the prize doesn't match your space, most rules let you decline — but you rarely get cash instead, so confirm whether a substitution or a smaller model is even an option before you sign the affidavit.
Budget for the tax on full retail value
Here's the part that catches winners off guard: the IRS treats prizes as ordinary income at the full Approved Retail Value, reported on a 1099-MISC if the ARV is $600 or more — which nearly every appliance clears. You owe federal tax at your marginal rate (22% or 24% for many households) on that full number, even though you'd never have paid sticker price and even though you're eating hundreds in delivery and install on top.
Run it: a fridge with a $3,200 ARV at a 24% bracket is roughly $768 in added federal tax, plus state income tax where it applies. Sponsors sometimes inflate ARV above street price, and you can dispute a wildly high figure with dated listings of the identical model — but you can't dispute it to zero. Add the tax, delivery, and install together, compare that to what the appliance sells for today, and only then decide the prize is worth claiming.