With sweepstakes casinos popping up all over the country—pun intended—some people may be wondering how they differ from online casinos and how they legally function.
PennLive is closely examining the legality of sweepstakes casinos and highlighting the top sweepstakes casinos in the United States in order to help enlighten individuals who are interested.
Since sweepstakes casinos are by definition not casinos, they have gained a lot of popularity. It is more of a gaming platform than a casino because players can play for free using a second currency. Having said that, the two-currency system allows players to enjoy playing a variety of casino games at well-known sweepstakes casinos in the state for real money.
This distinction enables sweepstakes casinos to function under a distinct legal framework and differentiate themselves from online casinos.
What makes an online sweeps casino legal
Since there is no purchase required to play, online sweeps casinos are subject to different regulations than other types of online casinos.
This is the foundation of all sweepstakes laws, albeit each state has slightly different rules. In certain situations, additional requirements must be fulfilled, such as revealing the odds for every game, having explicit rules, and occasionally registering profits over $5,000. Additionally, in order to play, users must be at least 18 years old.
At the federal level, agencies like the US Department of Justice, the US Postal Service, the Federal Communications Commission, and the Federal Trade Commission also keep an eye on sweepstakes casinos. Other special regulations for sweepstakes casinos in Pennsylvania include the prohibition of alcoholic beverages as prizes and a $25,000 cap on the total value of prizes given out in a seven-day period.
At sweepstakes casinos, players wager with two distinct coin types—typically referred to as Gold Coins and Sweepstakes Coins—instead of real money. While Sweeps Coins can be exchanged for monetary rewards, Gold Coins allow users to play for free. To extend their gameplay, players can buy Gold Coins, and typically, they receive Sweeps Coins as a bonus.
Since Sweeps Coins may be exchanged for monetary prizes, using them for gambling is effectively the same as using real money. However, once more, there is no purchase required to play, which is what alters the legal way sweepstakes casinos function.
For a variety of reasons, several states have problems with this procedure and forbid sweepstakes casinos. Some states have banned sweepstakes casinos completely because they view them as an unregulated type of gambling, while others have included provisions or language from earlier laws.
Nevertheless, 46 out of 50 states have fully permitted the operation of sweepstakes casinos, making up the majority of the nation.
Which states do not allow sweepstakes casinos and why?
Some states that do not allow sweepstakes casinos are Idaho, Michigan, Nevada and Washington.
One state that didn’t hold back while banning sweepstakes casinos was Washington. They clearly stated that these sweepstakes casinos are not authorized to operate in the state.
In October 2023, Michigan did the same after Golden Hearts Games was forced to close. Since Golden Hearts’ closure and pressure on any gambling that is considered unregulated in Michigan, legitimate sweepstakes casinos have moved on.
Due to Idaho’s ban on players getting cash payouts, sweepstakes casinos are only able to accept Gold Coin bets, which reduces profitability and somewhat negates the purpose for operators.
All states in the US are accessible to sweepstakes casinos, with the exception of those three.
What are some popular sweepstakes casino operators?
There is no shortage to great and popular sweepstakes casino operators in Pennsylvania and beyond. The rivalry is very intense because new sweepstakes casinos appear almost every month.
For today, we will look at three popular choices: RealPrize Sweepstakes Casino, McLuck Sweepstakes Casino and Playfame Sweepstakes Casino.
RealPrize Sweepstakes Casino
With over 700slot gamesand a handful of table games, almost anyone can find the right game for them with RealPrize Sweepstakes Casino. Even better is the fact that new players getup to 625,000 Gold Coins + 125 SC free + 1250 VIP Pointsfor just registering. No promo code is needed and there is no purchase required.
RealPrize Sweepstakes Casinohas become known for its bonuses and promotions, fantastic customer support and a far above-average user experience.
McLuck Sweepstakes Casino
Few sweepstakes casinos are as strong across the board asMcLuck Sweepstakes Casinois.
McLuck Sweepstakes Casino has an extensive list of slot machine games that have been highly curated. There are also live dealer games likeblackjackand roulette as well as slingo options.
Even better is the great McLuck Sweepstakes Casino welcome bonus of57,500 Gold Coins and 27.5 Sweeps Coinsusing the codePENNLIVE.
Playfame Sweepstakes Casino
When it comes to slot machines, virtually no other operator has the same exquisite lineup as Playfame Sweepstakes Casino.
Withover 800 casino gamesavailable and some of the best slot machines created by top-of-the-line developers, the game library is epic. There are jackpot slots, exclusive titles, new releases regularly and all the classic casino games all gamblers love.
But do not think slot machines are the only thing that Playfame does well.Playfame Sweepstakes Casinois leading the way, with the Playfame Sweepstakes Casino welcome bonus being the crown jewel.
For simply signing up, players receive10,000 Gold Coins and 3 Sweeps Coins. That offer can be expanded toinclude 800,000 Gold Coins and 30 Sweeps Coins for $10.
What does the future of the sweepstakes casinos look like in the US?
There is no denying that sweepstakes casinos are picking up steam at a rapid pace. Many are playing for both free and cash prizes, but what does the future look like? Will these sweepstakes casinos continue to grow?
For now, the market is ripe for sweepstakes casinos. Very few states across the country have legalizedonline casinosat this point so sweepstakes casino operators have been cashing in on underserved markets. That being said if there is a new wave of online casino legalization, that could cut into the profits of these sweepstakes casinos.
There is no denying that would hurt the bottom line, but there is likely to be quite a few gamblers who would rather stick with sweepstakes casinos than transition to a newly legalized online casino operator. Plus, online casinos do not have free-to-play options like sweepstakes casinos do.
For that reason, it is unlikely online casinos will completely overwhelm sweepstakes casinos and there will likely always be a niche for them to fill.