The online casino industry has spawned numerous new, inventive subdivisions that previously lacked potential, especially in a market where land-based providers dominated the landscape. Sweepstakes casinos are a prime example of this.
In the years that preceded the meteoric rise of online casinos, they weren’t a viable avenue — to put it simply. Few people were intrigued by the idea of a casino where the mechanics of a game were the most important. In essence, the idea of a casino platform that bypassed real-money casinos, taking away much of the financial risk involved in conventional gambling avenues, wasn’t something that made financial sense for the big providers in the casino gaming industry.
Many believed that online casinos would fail due to slow internet and expensive computers, initially limiting access. Now, these antiquated views are proven wrong. However, to understand the rise of online sweepstakes casinos, we need to grasp the environment that has allowed them to flourish.
Sweepstakes defined
If you are familiar with the concept of casino games, then sweepstakes casinos are not a difficult concept to grasp. Flicking through a guide to sweepstakes collated by experts and those with expertise will allow you to get a bigger picture of what they’re all about.
If you want this definition in a nutshell, though, it’s a casino gaming platform where the idea of in-game currencies is championed over conventional money. You sign up, you’re given the gold coins and tokens that are only permissible for use via that provider, and you play casino games as you would at a conventional platform; the only difference is that the prizes are paid out in on-site currencies, gold coins, and prizes, and not real money.
Because of this critical distinction, sweepstakes casinos do not fall into the same regulatory remit as conventional platforms. While they lack the same profit potential as online casinos, especially international ones, they can enter markets where traditional gambling is banned. However, there is a potential target market in the tens of millions, such as in California and Texas.
What’s the appeal?
Sweepstakes must walk a tightrope with regulators, as they also need to generate a profit to remain in business; therefore, some incentive is necessary. Those who use their sites and mobile apps can purchase gold coins and on-site currencies.
Not only have sweepstakes casinos been able to adapt to tech and mobile integration in the workplace, but they have positioned themselves in the market by offering unique incentives to players. Many of their slot games offer specific prizes, such as holidays, shopping vouchers, and in rare instances, luxury prizes ranging from cars and, for those who fly close to the sun, at least from a regulatory perspective, cash prizes.
One of the key reasons they were not a viable part of the industry beforehand was due to logistical and profitability issues. However, opportunities have now presented themselves for sweepstakes casinos to flourish in the modern market.
It’s a potent blend of changing regulations and the way customers access casino games that has presented an opportunity for sweepstakes to emerge as a new viable route for casino gaming fans. Not only is the potential for financial loss significantly reduced, but it also allows gamers to enjoy the mechanics of casino games without worrying about monetary loss.
The future of sweepstakes
The industry’s future depends heavily on how the regulatory landscape in the US plays out. For instance, the states we mentioned earlier, such as Texas and California, have repeatedly rejected the possibility of legal online casinos within their borders over the last couple of decades.
California has surpassed Japan’s economy to become the fourth-largest in the world, a staggering statistic. It gives them flexibility when legalizing online gambling as they do not need to rely on the tax base in the same way smaller states do. Texas, to a lesser extent, is in a similar position, with its economy valued at around $2.5 trillion.
As long as these states remain resolute in keeping conventional casinos out of their jurisdictions, and sweepstakes casinos can operate within the grey area that exists between them, it’s likely that they will grow in popularity, both within these large states and further across the US and Europe.
Final say
Online sweepstakes have so many similarities with conventional casinos, at least from a gaming perspective. It doesn’t matter if you are playing slots, roulette, or poker; the rules all remain the same. In fact, many of these platforms have similar designs and audiovisual qualities that you can find at a conventional online casino.
All you need to remember, at least to understand the basics, is that sweepstakes use their own versions of currency rather than real money. This allows them to operate outside the remit of a traditional platform — but from a user perspective, 95% of their platform is identical to conventional platforms you might be more accustomed to.
