6 Reasons Why iGaming Operators Are Shifting to Sweepstakes Casino Platforms
Did you know that the sweepstakes casino market is growing at over 75% CAGR from 2019 to 2024. Whereas many traditional online casinos are struggling with stagnant growth. The rapid growth of sweepstakes casinos is driven by platforms allowing legal, engaging gameplay using virtual currencies without wagering real money.
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Supporting this trend, The Business Research Company reports that the broader social casino market, including sweepstakes platforms, is expected to reach $9.15 billion by 2027, growing at a CAGR of 6.2%. Given the growing trend of sweepstakes casinos, is it a good decision to transition to this model? Let’s find out.
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How is a Sweepstakes Casino Different From a Traditional Casino?
Both platforms are quite similar. However, the difference in terms of how players engage and how operators remain compliant with laws is important to note. For businesses looking to migrate to sweepstakes casino models, understanding these differences is essential.
| Feature | Traditional Casino | Sweepstakes Casino Platform |
| Monetization | Real-money bets | Virtual currency with promotional sweepstakes entries |
| Legal Status | Regulated as gambling | Frequently exempt from gambling laws |
| Access in Restricted Regions | Limited or banned | Available in most U.S. states and other restricted areas |
| Licensing Requirements | High, with strict enforcement | Lower, based on promotional laws |
| Withdrawal Options | Winnings paid in real currency | Redeemable prizes or cash equivalents from sweepstakes coins |
| Audience Reach | Gamblers primarily | Casual and social gamers, too |
| User Acquisition Cost | High | Lower due to free-play incentives |
For operators looking to expand scope and diminish regulatory barriers, the step to migrate to sweepstakes casinos is revolutionary.
Why Should You Transition to a Sweepstakes Casino?
The short answer is that it is a legally safer and smarter way to grow your iGaming business. The sweepstakes casino platform is also sustainable in the long run. Apart from this, there are key reasons that make this transition appealing:
1. Bypass Gambling Regulations
Although with distinct promotional systems and virtual currencies, sweepstakes casinos allow operators to legally invite users from markets restricted or forbidden from engaging in real-money gaming. This model has gained popularity in many US states like California, Florida, and Texas. Although there are restrictions on gambling here, sweepstakes-based gaming is still allowed.
2. Tap Into a Broader Audience
Both casual players and non-gamblers seeking entertainment-driven gameplay are drawn to this model. The primary reason for this is that there is no chance of them losing their money. It also serves the expanding mobile gaming community because Gen Z and millennials prefer free-to-play, gamified experiences,
3. Reduce Licensing Complexities
In contrast to genuine-money websites needing rigid and expensive gambling licenses, sweepstakes models generally fall under the realm of promotional law. Thus, they are reducing the legal and financial entry hurdles. This allows operators to go live quicker without having to wait months for regulatory clearance. It also makes it easier to test new markets with greater flexibility without the initial commitment to a long-term licensing fee.
4. Monetize Without Real Money Bets
Operators can ensure monetization without triggering gambling classifications by selling virtual currency packs (such as Gold Coins) and providing sweepstakes entries as a bonus, complying with the AMOE requirements.
This also reduces the risk associated with financial losses and lost savings. Moreover, it enables revenue generation from entertainment value. A win-win for players and operators, both.
5. Boost Retention with Free Play
Regular bonus programs and free virtual coins encourage a fun, low-risk gameplay environment. This pushes players to return more often. These operators use retention mechanics like daily login bonuses, spin-the-wheel gifts, and milestone awards to hold players’ attention and increase brand loyalty.
6. Launch Faster with Lower Costs
Sweepstakes casino platforms can launch faster and for a fraction of the price of traditional casino platforms because they don’t require a large infrastructure for gambling compliance. Additionally, ready-to-deploy software solutions and modular sweepstakes frameworks allow for streamlined development cycles.
When you migrate to a sweepstakes casino, it provides a player-friendly, scalable, and legally compliant advantage in the highly competitive iGaming market.
Do you know the difference between traditional poker and sweepstakes poker? Find it out here.
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Similarities Between Sweepstakes Casino and Real Money Casino
Although the concepts of both sweepstakes and real money casinos are different, both share numerous similarities.
| Basis | Sweepstakes Casino | Real Money Casino |
| Game Variety | Table games and video poker | Slots and live dealer games |
| User Experience | Intuitive interfaces, mobile compatibility, and customer support | User-friendly layout, mobile access, and reliable help service |
| Promotion & Bonuses | Welcome bonuses (Gold Coins/Sweeps Coins), daily login rewards, and social media contests | Welcome bonuses (cash/free spins), deposit matches, loyalty rewards |
| Entertainment Value | High, engaging gameplay, social interaction | High, thrilling gameplay, potential for large wins |
| Security Measures | SSL encryption, secure payment processing, and responsible gaming tools | SSL encryption, secure payment processing, and responsible gaming tools |
How to Transition From a Traditional to a Sweepstakes Casino?
Such a transition demands reimagining your game economy. It will have its speed bumps along the way. However, following certain rules could help make the journey smooth:
1. Define Business Objectives
Be crystal clear on what you want to achieve. It could be entering into new markets or reducing regulatory costs. It could also be increasing user engagement with a legal-first approach. Moreover, you must determine KPIs such as acquisition cost, average revenue per user (ARPU), etc.
2. Check Legal Requirements
Consult legal experts to ensure your platform complies with sweepstakes and promotional laws in your target regions. Identify the laws around sweepstakes casino operators, hire a legal expert to understand the nuances, and incorporate your company under the right structure to ensure compliance.
3. Pick a Compliant Platform
Choose a sweepstakes-ready casino platform that supports dual-currency systems, prize redemptions, and legal disclaimers out of the box. A platform that has prior experience with U.S. promotional laws keeps legal hassles at bay. TRUEiGTECH offers ready-to-use sweepstake casino platforms, or we can also build one from scratch for your requirements.
4. Set Up Virtual Currencies
Make available at least two forms of virtual coins: one for free or entertaining play (e.g., Gold Coins) and a second (e.g., Sweepstakes Coins) that’s related to promotion contests and prize entry. These two currencies must be clearly distinguished in the user interface and backed by fair-use disclaimers.
5. Adjust Game Mechanics
Make sure your games are free of real-money betting and have clear entry mechanics that connect gameplay to sweepstakes eligibility. For the same, you must provide visual cues or in-game instructions explaining how to obtain and use sweepstakes coins.
6. Refine KYC and Onboarding
Reform your player onboarding and identity authentication (KYC) process to align with sweepstakes requirements, emphasizing age and regional restrictions. When necessary, limit access using age gates and geolocation checks.
7. Revise Policies and Disclaimers
Develop open terms, disclaimers, and sweepstakes rules that describe how entries, gameplay, and prize redemptions function to remain legally safeguarded. Make these policies easy to find in-game and on your website. You may want to run them by legal counsel for conformity with federal sweepstakes and state promotions laws.
8. Customize Sweepstakes Promotion
Build recurring sweepstakes campaigns with compelling rewards, countdowns, and promotion triggers that drive engagement and retention. Strategies like real-time notifications and visible timers create urgency and increase user participation.
9. Test Before Going Live
Perform rigorous QA testing on the currency system of the platform, prize logic, and legal messaging to prevent problems after launch and provide a seamless customer experience. A successful transition hinges on getting the legal, technical, and player experience aspects aligned from day one. The better your planning, the smoother your launch.
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Conclusion
Now that you know how you can transition from a traditional casino to a sweepstakes model, you must hire the best team of developers. This would enable to ensure an effortless transition, maximizing your reach and retaining your existing customers. However, there are countless developers available in the market, making it difficult for you to choose an ideal one.
Make TRUEiGTECH your #1 choice for sweepstakes casino platform development. Our team supports operators from start to finish by employing our proprietary strategies, expertise in the industry, and advanced technology. In fact, we have almost a decade of experience working on the iGaming platform, which enables us to empower operators and keep them ahead of the competition.
Written by: Prish K
Prish K, Head of Marketing at TRUEiGTECH, holds an experience of more than 10 years in the iGaming domain. Starting from strategic planning and digital marketing to team leadership and cross-functional collaboration, he is a master of his domains. For more than a decade, he has shown a promising commitment to fostering result-driven and creative work outputs. Beyond guiding newcomers and established iGaming operators with the right software solutions for their business needs, Prish also wants to share his industry expertise and knowledge through insightful blogs and articles
