Explainer: What is a Sweepstakes Casino?

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There has been a heightened surge in the launch of new sweepstakes casino sites in the US since 2019. For their growing interest in the US, this guide seeks to answer the big question – what is a sweepstakes casino?

A sweepstakes casino is a free-to-play gaming site offering a perfect alternative to a regular real-money online casino. You can play casino-style games for free and win cash or gift cards while operating within the US legal boundaries. Read on to understand what sweepstakes sites are, their operating model, and the legal nitty-gritty surrounding them.

Key Points
  • Key

    Sweepstakes casinos offer a free-to-play alternative to traditional online casinos, allowing you to participate in casino-style games without using real money while still offering the chance to win cash or gift cards.

  • Key

    These casinos operate on a dual-currency system, using gold coins (GC) for fun and sweepstakes coins (SC) for redeemable prizes. This model allows them to legally operate in states where online gambling is restricted.

  • Key

    Sweepstakes casinos are legal in over 40 U.S. states, as they don’t require real money deposits to play, circumventing the need for state-by-state licensing required by traditional online casinos.

  • Key

    You can earn virtual currencies through various promotions and bonuses, allowing you to extend gameplay without spending money, and increasing their chances of winning real prizes.

  • Key

    Unlike real-money online casinos, sweepstakes casinos are accessible in more states, but they offer limited gaming and banking options, making them less suitable for high-stakes players.

  • Key

    Sweepstakes casinos are growing in popularity and are predicted to play a significant role in the future of the U.S. gambling industry, especially as they continue to expand and innovate.

what is a sweesptakes casino

Understanding Sweepstakes Casinos

Sweepstakes casinos operate on a distinct, unique model compared to traditional online casinos. Despite offering the same casino-style games, the unique model enables you to play sweepstakes in states restricted from online gambling. The model is such that players will use virtual currencies in sweepstakes casinos instead of real money.

These virtual currencies include gold coins (GC) and sweepstakes coins (SC). All legal sweepstakes sites will offer them free through sweepstakes casino no deposit bonus deals like daily login, refer-a-friend, mail-in, or social media contests.

The simple answer is yes, sweepstakes casinos are legal. But is sweepstakes gambling? Sweeps play is not considered gambling in the US since you are not required to pay to enter a competition or play games to win prizes. Sweepstakes sites operate on a dual-currency model that eliminates the use of real money. Players use the freely obtained GC and SC through gameplay and bonuses to play games and redeem prizes.

The model emphasizes the ‘no purchase necessary’ requirement, where players do not need to deposit funds to play and win prizes. Through that, sweepstakes casinos navigate the legal hurdles since they are not subject to state-by-state licensing like traditional online casinos.

Today, sweepstakes casinos are legal in 40+ states compared to six (6) states for regular online casinos.

The few states where sweepstakes gambling is illegal include:

How do Sweepstakes Casinos Work?

Sweepstakes casinos operate similarly to traditional online casinos but with some slight differences.

There are certain similarities, such as:

The registration process will involve providing accurate information and verifying your account to ensure hassle-free GC purchase and SC redemption.

New players can expect bonuses from the onset, with various no deposit bonuses to offer free GCs and SCs. Then comes the games that are similar to those in regular online casinos. While they might be fewer, players can expect sweepstakes slots, roulette, baccarat, blackjack, poker, instant, slingo, keno, and live dealer options.

Besides the free coins offered, there is an option to buy more GCs. Most sweepstakes sites allow you to purchase for as low as $4.99, with some packages attached with free SC as a bonus.

To redeem prizes, you must play with SC coins at least once (1x) and acquire the minimum SC limit for redemption. The exchange rate across most platforms is 1 SC for 1 USD. Adding to cash prizes are gift cards you can redeem.

Sweepstakes Casinos vs Real Money Online Casinos

The table below summarizes the differences between sweepstakes casinos and real-money online casinos:

 Sweepstakes CasinosReal Money Online Casinos
CurrencyUse a dual-currency system of gold coins and sweeps coinsUse real-money currency
LegalityLegal in 40+ US statesLegal in 6 US states
Games LibraryFewer gaming optionsMore gaming options
Bonuses and PromotionsLow-value bonuses & promotionsHigh-value bonuses & promotions
PrizesCash and other prizes like gift cardsOnly cash prizes

Pros and Cons of Sweepstakes Casinos

The table below analyzes the benefits and drawbacks associated with sweepstakes casinos in the US:

Pros
  • Green Tick

    Accessible in 40+ US states

  • Green Tick

    Do not require state-by-state licensing

  • Green Tick

    Offer a free-to-play model

  • Green Tick

    Can win cash prizes and gift cards

  • Green Tick

    Feature regular casino-style games

  • Green Tick

    Perfect for social interaction

Cons
  • Cross

    Limited gaming options

  • Cross

    Limited banking options

  • Cross

    Not suitable for high-stake bettors

Tips for Maximizing Your Gameplay at Sweepstakes Casinos

Looking to get started at the best online sweepstakes casino sites? There are various tips you can use to maximize your gameplay experience. They include:

  1. Claim no deposit bonuses and promotions: Ensure you claim the daily no deposit bonuses and promotions to maintain a positive bankroll. The more bonuses you claim, the more the virtual coins, and the longer the gameplay sessions.
  2. Use gold coins first: The golden rule of gaining a sweepstakes advantage is to use gold coins first before playing with sweeps coins. It allows you to demo games to gain insights and understand them to improve your winning chances.
  3. Connect with the gaming community: Join and connect with active social communities to share more tips and strategies and to stay updated with the latest contests, giveaways, tournaments, and trends.
  4. Choose high RTP games: High RTP games are synonymous with high payouts and increased chances of winning. Pick them to maximize your winning potential.
  5. Set a budget: Have a set budget and stick to it. A set budget helps you avoid overspending and promotes responsible gambling.
Luke Warr
Luke Warr

Since: April 6, 2022

Luke is an esports content specialist, with in-depth knowledge and passion in Esports & iGaming markets, with over 5 years of experience in emerging technologies in relation to crypto, blockchain, AI and esportsbooks.

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