I've entered sweepstakes and contests, and recently they all have the option to refer a friend. If your friend enters the contest, you get an extra entry for yourself, "increasing your odds of winning", as the contest likes to proclaim.
Is this always true? Sure, I get an extra entry, but that's somewhat negated by the fact that someone else has an entry for themselves.
With some quick math, I found this may be a true statement, assuming there are more than 2 people already entered.
It certainly does not hold true if you're the only entrant. You have a 1/1 chance of winning, and your friend enters, reducing your odds to 2/3.
Similarly, with 2 entries, you have a 1/2 chance. With your friend entering, you still have a 50% chance, 2/4.
Aside from those two edge cases, which are extremely unlikely in any contest, are you always going to have a higher chance of winning by getting a referral entry? For the general case, assume you get one entry for every one entry of your referral. However, in other cases, you get 2 or 3 entries for a single entry of someone else.