NEWS

22
2023
Dec.
Industry News
Industry News

Reinventing the Traditional Casino? The Rise of the Sweepstakes Casino

Over the years, casinos around the world have continued to undergo a variety of amazing transformations, from the glamorous brick-and-mortar casinos often seen in movies, to the era of online casinos that offer a wealth of entertainment possibilities, meaning that players can enjoy the excitement of casino gaming from anywhere and at any time.
However, the world of online casinos has also changed recently with the advent of sweepstakes casinos. These casinos are gaining momentum in the industry, and some even believe that they will overtake regular online casinos in the future. In this article, we will explore what sweepstakes casinos are, how they work, and how they differ from traditional online casinos.
 
What is a Sweepstakes Casino?
Sweepstakes casinos (or sweeps casinos) often seem familiar to those who have played at traditional online casinos because of the similarities in the way they operate. After registering for an account, users can enjoy playing a wide range of online games such as blackjack, roulette, chess, and various slot games.
Another similarity between sweepstakes casinos and traditional online casinos is that they both offer a variety of prizes for players to claim, including sign-up bonuses, daily log-in bonuses, giveaways, and prizes earned through tournaments.
 
How Does a Sweepstakes Casino Differ from a Traditional Online Casino?
Although sweepstakes casinos are similar to traditional online casinos in terms of their appearance, gameplay, and game choices, their currency systems are quite different. Typically, sweepstakes casinos use two types of currency:
 
Coins
When a player registers at a sweepstakes casino, they are not required to deposit cash into their account. Instead, the player can purchase coins (or other tokens that perform the same function) and use them to play on the platform. However, these coins do not have any monetary value and cannot be withdrawn or exchanged for cash; they can only be used in games.
 
Sweepstakes Coins
The second type of coin commonly found in sweepstakes casinos is the Sweepstakes Coin (or substitutes for the same function). These coins cannot be purchased, but are given away by the system in the form of coins, registrations, daily logins, or in the form of freebies. Lucky Draw Coins can also be used in the game and have no physical monetary value. However, they can be exchanged for prizes, even real-world cash, and can be withdrawn from the player's account.
 
How Do the Regulations of Traditional Casinos Affect the Popularity of Sweepstakes Casinos?
The main reason why sweepstakes casinos have flourished is that they are legal in many areas where traditional online casinos are strictly regulated or banned. As a result, players in the area can experience the fun of gaming through sweepstakes casinos.
Unlike traditional online casinos that require a cash deposit to play, players can play by giving away sweepstakes coins, which means that players are playing for free and therefore these casinos are not usually considered traditional gambling establishments.
 
Are Sweepstakes Casinos Legal in All US States?
Nevertheless, sweepstakes casinos are not necessarily legal in the entire United States.
In some states, sweepstakes casinos are still restricted, and such differences depend on how each state views the rules regarding the sweepstakes casino format. For example, sweepstakes casinos are still prohibited in Washington because the state's Gambling Commission considers sweepstakes casinos that combine lotteries with promotional contests - a new type of contest that is still not permitted under the state's statutes.
 
Can Sweepstakes Casinos Replace Traditional Online Casinos?
It remains to be observed whether sweepstakes casinos will replace traditional online casinos as the new favourite among players.
Although sweepstakes casinos have seen a surge in popularity in states where they are permitted by law, it will be an uphill battle for them to completely replace traditional online casinos in the eyes of players unless state laws are changed to prohibit traditional online casinos from operating as well.
However, in states where traditional online casinos are not permitted by statute, sweepstakes casinos are a promising business opportunity. After all, the format is still in its early stages of development for many players, and there are bound to be many more potential players waiting to be tapped into.
In order to keep registered sweepstakes casino players as loyal customers, providers must continue to include attractive games and ways to drive players to earn sweepstakes coins.
It is clear that this new type of casino game provider has a difficult road ahead of them in terms of how to drive the desire of players to log in to the games on a long-term and efficient basis.