The only "contest" that is regulated by law is legally called a "Sweepstake". A sweepstake is quite clearly defined as "free entries into drawings of chance". http://en.wikipedia.org/wiki/Sweepstakes
Comparing a design contest to a sweepstake is incorrect. They are not the same thing.
And links to sites with a clear, stated, and extreme bias doesn't help you convince me "design contests are bad". It only drives home the points "designers -think- design contests are bad".
Did you read the article? As it says, there are multiple varieties of contest regulated by law, with games of chance being only one of them, and sweepstakes being only one of those. Your Wikipedia article is quite explicit about sweepstakes not involving skill, with reason.
The article agrees with you that design contests are not sweepstakes -- they are another type of contest which is subject to different laws. And while the article's truth would benefit its author, that does not mean it is untrue.
Comparing a design contest to a sweepstake is incorrect. They are not the same thing.
And links to sites with a clear, stated, and extreme bias doesn't help you convince me "design contests are bad". It only drives home the points "designers -think- design contests are bad".
Welcome to the free market.