Advertising revenue: Game shows generate a lot of advertising revenue, which helps to cover the costs of the prizes. When you watch a game show, you will likely see commercials for various products and services. These commercials help to bring in money for the network that airs the game show, which can then be used to pay for the prizes.
Sponsorships: Many game shows are sponsored by companies that provide the prizes. For example, a car company might sponsor a game show and provide a new car as the grand prize. In return for providing the prize, the company gets its name and logo featured on the show. This can be a great way for companies to promote their products and services.
Licensing fees: Some game shows are based on existing intellectual property, such as movies or TV shows. In these cases, the game show producers must pay a licensing fee to the owners of the intellectual property. This fee can help to cover the costs of the prizes.
Budgeting: Game shows are carefully budgeted to ensure that they do not spend more money than they bring in. The producers of a game show will determine how much money they can afford to spend on prizes and then they will work within that budget.
It is important to note that game shows are not the only ones who give away money. There are many other organizations that give away money to people in need, such as charities and government programs.