There are variations on a theme, but the most common format is an eight-person, three game singles bracket, which will be considered in this example. The eight bowlers are randomly assigned to four single game matches. First nominated game scores determine the match winners and those four bowlers advance. Their second nominated game scores advance the two winners to the title match. The third nominated game determines the bracket winner.
Prize money is returned to the bracket winner and the runner-up.
Putting it another way, two wins are needed to cash. The prize money comes from the entry fee per bracket per bowler. It gets interesting for everyone the more brackets you run at one time. Bowlers can only enter each bracket once, but they can enter as many brackets as they like and win as many as they enter. A common mis-conception of brackets is that they are an illegal form of gambling.