When I've done this, I tried to take a creative twist to traditional carnival games. For example, my drinking contest was a little different.
Dwarven Drinking Contest: unlike most drinking contests, this one is centered around not drinking. All of the participants eat the driest/spiciest dish imaginable. Meanwhile, their beverage of choice is placed in front of them. The last person to quench their thirst wins.
In all of the contests, insults, pleading, minor cheating (sleight of hand or similar tricks) are not exactly encouraged but certainly not against the rules. As long as it doesn't get past cantrip-level magic, pretty much anything is allowed. Just remember that the NPCs may have spellcasters on their side as well, so if someone realizes you are bending the rules, expect retaliation.
If someone comes up with a particularly inventive insult for example, I'd give advantage/disadvantage as appropriate or a minor bonus or penalty.
Dwarven Drinking Contest: unlike most drinking contests, this one is centered around not drinking. All of the participants eat the driest/spiciest dish imaginable. Meanwhile, their beverage of choice is placed in front of them. The last person to quench their thirst wins.
In all of the contests, insults, pleading, minor cheating (sleight of hand or similar tricks) are not exactly encouraged but certainly not against the rules. As long as it doesn't get past cantrip-level magic, pretty much anything is allowed. Just remember that the NPCs may have spellcasters on their side as well, so if someone realizes you are bending the rules, expect retaliation.
If someone comes up with a particularly inventive insult for example, I'd give advantage/disadvantage as appropriate or a minor bonus or penalty.