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CBS News on MSN: New York City will host 5 free FIFA World Cup fan events this summer. Here's what to know.
8 "Free" and "on the house" both mean that you don't have to pay, but the inferred meaning is slightly different. If something is "free" it is without charge. For example, you might receive a voucher through the mail that says you are entitled to a free drink if you hand the voucher in at a bar.
I don't think there's any difference in meaning, although "free of charges" is much less common than "free of charge". Regarding your second question about context: given that English normally likes to adopt the shortest phrasing possible, the longer form "free of charge" can be used as a means of drawing attention to the lack of demand for ...