We took a deep dive into this fast-growing form of online entertainment and the reasons for its meteoric popularity.
There’s a fairly new kid on the block, and making waves in the iGaming industry. I use the term ‘gaming’ rather than ‘gambling’ and I’ll tell you why: technically, there’s no actual money involved! No cash changes hands. There’s no betting, i.e. gambling, on an outcome of any game. Games on these sites are F2P (free-to-play). (Obviously, there are exceptions, but this is basically the case.) So how can sweepstakes casinos operate without creating income? Well, they do, and make very tidy-profits-thank-you-very-much, but more on that later…
Where it all began
In the early 2000s, internet cafés started to spring up all over the USA and elsewhere, and besides email services and suchlike, they began to offer F2P iGaming with prizes on offer. This circumvented the gambling laws in many states in the US, the argument being that café owners were selling internet time, with prizes being merely a nice perk. This ploy didn’t work after a while, as legislators began to crack down on what smelled a lot like online gambling. Smart operators had to adapt and instead of games with groups of players connecting only locally, these resourceful early adopters took their business to the wonderful World Wide Web. Provided the games offered are F2P, including traditional casino games, sweepstakes casinos can still operate in large parts of the USA and Canada. As actual sweepstake competitions, such as Lotto, for example, are legal in the US, sweepstakes casinos do, however, skate on fairly thin ice when it comes to legislation, where they operate under laws governing sweepstakes.
Sleight of hand
Note how this type of casino cleverly (and rather sneakily!) sidesteps the online gambling prohibition by ensuring that any money spent or prizes won have nothing to do with the actual outcome of any game played or ‘pretend’ bet wagered! By doing so, they have cornered the once-forbidden territory of the USA, which accounts for the major percentage of the sweepstake casino business. One has to give it up to the entrepreneurs who developed and perfected this hybrid form of entertainment that has become hugely popular and opened up lucrative markets once closed to conventional online casinos.
That’s how you do it, ladies and gentlemen!
So, how does a Sweepstakes Casino work?
For those who don’t actually want to gamble large sums of money, or any money at all, but enjoy the thrill of playing and ‘winning’, sweepstakes casinos offer a fun, risk-free way of gaming. It can also be a way for players to test out games before going for real money wagering on other sites. Most of these online casinos offer free tokens to play with, called Gold Coins. You can also buy extra coins for more play (this is where the casino makes its profits); however, they cannot be redeemed for cash or prizes.
Sweepstake casinos operate on two ‘currencies’. As already mentioned, there are Gold or Fun Coins, but in addition, there are Sweep Coins, or prize currency. These ones can’t be bought – players must earn them through participating in events, promotions, activities, daily logins, etc. Buying extra Fun or Gold Coins can also earn you Sweep Coins. These are the ways players can actually be awarded cash or other prizes.
The value-added aspects of Sweepstakes Casino
Perhaps one of the attractive aspects of ‘sweeps’ is that they are more welcoming and ‘user-friendly’ than conventional casinos. Even though sweeps are really just a profit-making business like any other (duh!), they give players a chance to play for free and don’t pressure them into more than they are willing to do; perhaps just an occasional prompt to take their gaming to the next level (wink).
What’s on offer in a Sweepstakes Casino?
Sweeps offer most of the games that you’d find in a standard casino. All kinds of slots are available to play, plus table games such as roulette and poker. Scratch cards and bingo are also popular. Generally, individual sweeps casinos have a smaller range of games on offer than conventional casinos, but usually enough variety to give you some great entertainment value – for free!
Okay, then what about Social Casinos? Are they the same as Sweepstake Casinos?
The short answer: No, they are not!
A lot of people, including those in the casino business, lump social and sweepstake casinos together, but there are a few fundamental differences. For a start, social casinos operate strictly on a free-to-play basis and don’t offer any incentives other than in-app rewards, such as more coins and your name on the leaderboard. Casino income is also derived from players buying more coins, plus advertising and sponsorships.
As we’ve already discussed, Sweepstakes operates on a dual coin system with Sweep Coins having actual exchange value outside of gameplay.
The lingo of Sweepstakes
Importantly, the language used by sweepstakes (and social) casinos needs to be carefully observed, as terms commonly used on real-money platforms simply can’t be used, because, well, there’s no real money involved. Words like “deposit,” “bet,” or “withdraw” must be replaced with alternatives like “purchase,” “play,” and “redeem.” Even “win” is often replaced with “receive” or “collect.” This isn’t just a stylistic choice – it’s a legal requirement.
With deep expertise in iGaming, whether it’s traditional casinos or sweepstakes, our linguists understand how critical these distinctions are. We ensure that your content is localized not only with cultural sensitivity but also with full awareness of the regulatory landscape, helping your brand speak the right language in every jurisdiction.
Are Sweepstakes Casinos here to stay?
As long as there are anti-online-gambling laws in the US, sweeps casinos will continue to thrive. Remember, this type of online gaming was born out of a way to get around restrictive gambling laws! Even if these laws were lifted, perhaps these types of hugely popular and lucrative iGaming platforms will continue to grow, as they bring in a new market of gamers. In addition, sweepstakes casinos can be ‘mined’ by conventional online casinos for potential customers to join their real-money platforms.
In terms of a business opportunity, word in the industry is that it is simpler and costs much less to float a sweeps casino, with less risk and big rewards.
Translation Royale, a part of the All-in Global family, is your go-to language expert for all things gambling (or ‘sweepstaking’!). We understand the nuances of every gambling/gaming vertical and speak your players’ language – literally (we cover more than 100 of them). So, if you’re looking to localize your iGaming content with precision, cultural flair, and full compliance, we’re your one-stop shop. Drop us a line at sales@all-in.global.
