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The term freeroll is also used to describe a tournament with no entry fee but the use of the terms 'free' and 'no entry fee' can be misleading because some freerolls require a payment at some point to gain entry to the tournament.
The prize pool, instead of being an accumulation of the entry fees minus a fee for the 'house' (the way pay-to-play tournaments are typically constructed), is derived from a donation from the house, sponsorship fees, admission charged to spectators, broadcast rights fees, or any combination of these. Sometimes a particular cardroom or casino (either traditional or online) will offer a freeroll tournament to frequent players. Invitation-only tournaments are frequently freerolls.
PartyPoker is one poker room that offers 'freeroll' tournaments and games for players, with entrants not being charged for poker tournament entry.