For many people, the word sweepstake is associated with competitions and giveaways. However, the term also now represents a revolutionary change in the world of online casino sites. Sweepstake casinos, also known as social casinos, have swept to popularity in the U.S., and they are changing the future of iGaming in the country.
In this article, we will examine the impact of sweepstake casinos, how they work, and what the future holds for them.
How sweepstake casinos work
Sweepstake casinos are a version of regular online casino sites. However, they work differently from traditional real money sites. The main difference is that people do not wager real money to play games at sweepstake casinos.
Instead, players use a virtual currency on the site. This virtual currency is purchased in packages that may also include bonus entries to sweepstake contests.
The games available at sweepstake casinos include the same variety as at traditional online casinos, such as slots and table games. Graphics and animation quality are as high as in top real-money online casinos. People playing the games can win prizes and cash rewards.
How online casino regulation relates to sweepstakes casinos
Currently, only seven states in the U.S. have legalized online casinos. These states are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, West Virginia, and Nevada. However, because players do not wager real money at sweepstake casinos, state online casino laws do not apply to them.
This situation means that sweepstake casinos are legal in all states with the exception of Washington. This legal position is a major factor in the growth of social casinos in the U.S., which means there is now a large selection of top sweepstakes casinos in the country.
The legal position of sweepstakes casinos is not the only reason for their growth in popularity. Let’s take a closer look at this matter.
Drivers behind the growth of sweepstakes casinos
We have already discussed how the lack of legal restrictions on sweepstakes casinos has helped their popularity to surge. Other factors have also played a role in the increasing number of sweepstakes casino sites. These factors are,
- There is an opportunity to win cash prizes and other rewards when playing games at social casinos.
- Diverse game libraries provide an equally exciting experience as real money casinos, including slot games, blackjack, and video poker, in addition to other traditional casino table games.
- Accessibility across most U.S. states is assisted by the fact that nine in ten Americans own a smartphone. This means that players can access their favorite games from any location with Internet access.
The future of sweepstakes casinos in the US
It’s clear that sweepstakes casinos are already reshaping the world of iGaming in the U.S. But how much influence will they continue to have in the future? It’s difficult to provide a definitive answer to this question as it’s possible that the popularity of these sites will peak, and the market may become saturated.
Factors that could provide an indication of the future of sweepstakes casinos by having a positive or less positive impact include,
- Prizes at real money casinos are more valuable and will continue to attract an increasing number of players.
- Despite the potential high wins at real money sites, people could continue to be attracted to sweepstakes casinos by the reduced risk of playing.
- People are now back to their normal routines following the end of the pandemic which is likely to result in them spending less time at iGaming sites overall.
- There could potentially be increased regulation of sweepstakes casinos in the future.
Overall, the future of sweepstakes casinos is likely to be positive in the immediate future. For example, the global market for these casinos was 6464 million in 2021 and is expected to rise to 11,870.09 in 2031.
In the longer term, sweepstakes casinos are most likely to flourish in parts of the country where there are restrictions on real money online casinos. In these states, sweepstakes casinos will continue to provide access to iGaming that is not available in any other way. However, in states where traditional online casinos are legal, sweepstakes sites may struggle to compete. Therefore, we are likely to see sweepstakes casino providers concentrate their efforts in places where legislation prevents the operation of real money iGaming sites.