They were ruled not to be a form of gambling
It followed the U.S. Supreme Court ruling in 1954, in Federal Communications Commission v. American Broadcasting Co., Inc. 347 U.S. 284. Gambling was not permitted on TV in the US at the time. Hazel Bishop, Inc, did sponsor a radio (and subsequently TV) show, but not a quiz; it was "This is Your Life". the success of which for the company's sales encouraged others to sponsor big-winning TV quizzes.
