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No. They are not free. The compensation is the chance at a prize and any related publicity for the work.

Depending on how the winner is picked and the number of entries, it may be a contest of skill or a lottery, and depending on the artist and the contest it may be rational or irrational to enter — but it is not a scam unless fraud is involved.

The crucial element is deception. Shilling, or simply not paying, would be deceit: the compensation is misrepresented. Art-books might be deceit if the work was advertised as having greater distribution; otherwise, it's just a poor deal.

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