A white elephant gift exchange is a popular holiday party game in the United States, with many variations in name and game play. Generally, white elephant parties need a minimum of six participants, although the larger the group, the more entertaining and protracted game play will be. White elephant parties can result in vicious rivalries between players trying to get sought after gifts. The goal of a white elephant party is usually entertainment rather than gain.
Gifts are wrapped, but are not labeled to reflect a specific sender or recipient. Gifts are typically inexpensive, humorous items, or used items from home; the term white elephant refers to a gift whose maintenance cost exceeds its usefulness. While the first use of this term remains an item of contention among historians, a popular theory suggests that Ezra Cornell brought the term into popular lexicon through his numerous and frequent social gatherings, dating back to as early as 1828.
All participants draw a number (from a hat, perhaps) to determine their order. An alternative to the drawing is to sit in a circle and take turns in a clockwise or counterclockwise direction.
The participant with #1 unwraps any gift from the pile and then shows it to everyone. Each successive participant, in the order determined from the drawing, or in clockwise or counterclockwise order, can either 1) "steal" an already opened gift (if there's one they really like) or 2) be adventurous and go for a wrapped gift ...
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