Whenever a new version of casino gaming emerges online, it leaves analysts and casino gamers champing at the bit to see how viable it is and whether or not it has a future in the industry. The legality of online sweepstakes continues to generate discussion within the online gaming community.
While they have a lot more flexibility than the more conventional type of online casino if you’re looking to play at sweepstakes, it’s always a good idea to check their legality in your country, state or province, and understand precisely what sweepstakes casino gaming entails.
The Appeal of Sweepstakes
Sweepstakes can appeal to many different players, for example, those who enjoy sampling different game mechanics but don’t like the risk involved in more traditional slots. They can also appeal to gamers who are restricted due to the rules and regulations in their state or country.
Although the barriers are starting to come down throughout the US, there are still several states where gambling is not permitted and online casino gaming is frowned upon. This is particularly true of the larger states, including Texas, Alaska and California.
California’s population, just shy of 40 million, cannot access online casino gaming or sports betting. Despite expensive lobbying campaigns, the state has stuck to its guns and does not permit betting.
However, as sweepstakes casinos use different types of currencies, including sweeps coins and tokens, and do not fall under the definition of conventional online gambling, they have found a market in California and other states where traditional gambling is still not permitted.
While casinos in the East Bay are growing in popularity, the same is true for sweepstakes casinos based across the Golden State. Not only can those in California, Texas and other states enjoy the mechanics of a casino gaming site, but sweepstakes casinos operate outside the framework of state regulation and offer a viable avenue for those who are looking to play slots, poker or a whole host of other casino classics via a sweepstakes provider.
Reasons Why Sweepstakes Are Unique
Sweepstakes casinos operate successfully by allowing users to bet using sweeps coins, gold tokens and other types of in-site currencies, which are not considered traditional payment methods.
For instance, if you buy 10,000 gold coins for $10, the minimum amount you can play with on a sweepstakes site might be 10 gold coins. You don’t receive payment back in the form of money.
However, some sweepstakes offer prizes like vouchers or more tokens. They emphasize the game’s mechanics and the site, rather than the traditional providers’ model where money is deposited, bet and usually lost.
Conventional casinos require significant licensing and regulation, and often pay fees to governing bodies and state legislators before they are legally allowed to operate within different states, whereas sweepstakes can launch with little to no issues or red tape. Ultimately, sweepstakes are free to operate as they please, as long as they do not start offering real-money casino games.
Problems That Sweepstakes Face
Being able to circumvent some of the more stringent gambling regulations is undoubtedly a plus for those in the sweepstakes sector. However, given that they do not have the same bankroll or audience as conventional providers, they operate with much thinner margins, both from a business and advertising perspective.
We’ve seen the extent to which AI is changing the world. It’s becoming an integral part of education, helping students study; it’s transforming the design of gaming, too. With the amount of money piling into the development of the tech, conventional casinos are impatient to see how they can integrate it into their platforms.
All of this costs money, which the top casinos have, whereas sweepstakes have to be creative and think outside the box when developing their brand, and be more selective with the adverts they choose.
While sweepstakes are outside the regulatory framework currently, there are growing calls for them to face stiffer regulations akin to those of the conventional online casino sector. If they do have to jump through more hoops or face greater regulation, this could spell the end for many sweepstakes providers, especially those just finding their feet in the market.
Final Thoughts
As conventional online casinos continue to explore new regulatory territory and expand into more states, the sweepstakes market becomes tighter. That isn’t to say that they will die out as traditional competition becomes more accessible, but it is a headache that the sector could afford to live without.
Legally speaking, the next five years could be crucial for sweepstakes. It does feel as though they will face a flurry of questions about the viability of their operations over the next few years. If they can come out of this discussion relatively unscathed and continue operating as businesses outside of the traditional casino form, they will certainly have a future.
Sweepstakes are unlikely to gain a significant grip on the market, as conventional providers are simply too dominant, too global and too profitable to face any significant competition, particularly from providers unable to offer the same prizes.
The real crunch test will be if a state like California or Texas legalizes and regulates online casinos. That could strike a significant blow to sweepstakes and damage their viability in the long run. However, with California’s staunch approach and states like Utah and Hawaii vehemently against the idea, there’s still plenty of life in the sweepstakes sector.
