The online casino industry in the United States is maturing rapidly in some states, while others are slow and stubborn about enabling the industry through regulation. In states that have not regulated and embraced legalization of the online casino marketplace, consumers and operators are finding other ways to satisfy a marketplace urge that is clearly present. One of the ways that people are getting around the lack of regulated casino games is through sweepstakes casinos.

The rising popularity of these sweepstakes casinos is prompting some regulatory bodies to consider passing laws specifically tailored to them, as they feel they are operating in a legally gray area. Interestingly, these types of platforms are not typically found in many other regions, with other regions having broader anti-gambling laws or more cogent regulated markets. For instance, in Germany and other places in Europe, there are plenty of online casino platforms that offer no deposit bonus promotions to attract customers in a crowded marketplace, but sweepstakes casino platforms are much rarer and less popular.

What Is A Sweepstakes Casino Exactly?

In a nutshell, a sweepstake casino is a gaming platform that lets players engage with gambling games like slots, blackjack, poker and other casino favorites, but without using money for placing bets. Instead of money, players can earn and purchase in-game credits that they then wager with. Winning games gives them similar and different credits back, which can then be redeemed for real currency.

By having this model in place, sweepstakes casinos are able to operate without infringing on laws related to online gambling in many states. They are set up so that they are considered more akin to a promotional contest or raffle than to a casino, despite having casino games on their platforms.

Why Are They Getting More Popular Now?

There are a couple of reasons that are driving the somewhat explosive growth of sweepstakes casinos online in the U.S., such as:

  • They are accessible: Accessibility is a key driving factor in the success of many different internet trends, and sweepstake casinos are ticking that box as well. Almost every state allows sweepstakes casinos, even when they don’t allow more traditional gambling. This means that they have a wide potential audience.
  • Community features: Something that many people crave, more than the chance to win something, is the feeling of community and belonging. By having social and community features, sweepstakes casinos are able to provide people with a feeling of belonging that can be more addictive than any game.
  • They are cheap: When we say cheap, we mean they can be really cheap. Like, free, cheap. That’s a pretty good price for entertainment. While they are unlikely to let people play for free forever, many platforms offer no-deposit and sign-up bonuses that let players dip their toes in and try the games.
  • They are familiar: Pretty much everyone understands how poker and blackjack work, right? And slot games are not particularly complex in nature. The familiarity and simplicity of the games that sweepstakes casinos offer are a big draw for many people who just want to unwind without using too much brainpower.
  • Online entertainment is on the rise: Pretty straightforwardly, all forms of online entertainment are growing. They’re convenient, cheap and accessible.

What Concerns Are Regulators Claiming?

As the popularity and notoriety of sweepstakes casinos continue to rise, they are drawing ever more attention from regulatory bodies. While there is a whole host of issues that people might have with them, the salient few that most regulators agree on when discussing sweepstakes casinos include the following:

  • No regulatory oversight: Interestingly, this is more of a problem in states that do have regulated online casino environments. Groups in these states are claiming that sweepstakes casinos don’t have to abide by the same stringent regulations that other online casino platforms do, and that it is unfair.
  • Consumer protection: We said before that the U.S. is not exactly a hotbed of consumer protection, but, credit where it’s due, this is a reasonable reason to raise concerns. By operating without adhering to the consumer protection standards that regulated casino platforms do, sweepstakes casinos are not buying into a variety of consumer protection initiatives.
  • Problem gambling concerns: Despite not having real money as a wagering device, sweepstakes casinos use the same types of games and techniques that traditional casinos do. Regulators are concerned that these platforms could still cause people vulnerable to gambling issues to suffer.

What Might the Future Hold?

While it is impossible for anyone to say with certainty, it seems fairly likely that the increasing popularity and scrutiny that these platforms are enjoying will precipitate regulatory action. Some states might ban them outright, but those that have already regulated and are shepherding the creation of healthy online casino marketplaces are more likely to regulate them in a similar way to other casino platforms.

Sweepstakes casinos in the U.S. are currently occupying a bit of a wild-west space, but that is unlikely to last forever.

The online casino market in the U.S. continues to develop, with sweepstakes casino models sprouting up in states that are slow to regulate more traditional online casino options. These sweepstakes casinos circumvent laws relating to online casinos by exploiting what some consider to be a legal loophole. Some regulators are less than enthused about their growing popularity.