What are the taxes and laws associated with sending money to winners of a non-gambling related competition? These winners would be from the US, Canada and perhaps from parts of Europe.

There is no "one answer fits all." Were is the money being sent from, what Country? What type of competition? Gambling, cards?

If this prize money was coming from the US, any prizes valued at $600 or more must be reported using the 1099-MISC form. I bet that Canada has a similar rule, but since this forum is dedicated to US tax questions you may not receive a specific answer here.