How Sweepstakes Poker Differs from Traditional Online Poker?
The size of the online poker industry was estimated to grow at a CAGR of 10.2% between. Such a tremendous growth figure was projected due to the continuous growth in the demand for the online poker industry. Currently, the total number of online poker players is 100 million, and 60 million of them are from the U.S. alone.
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Such huge demand also calls for innovations in the market to keep the users engaged and ensure your online poker brand stands out. The emergence of sweepstakes poker was one such innovation. Since the majority of countries around the globe have not yet legalized online poker, sweepstakes poker has presented itself as a legal workaround that is quickly gaining traction. Read on to see how sweepstakes poker and traditional online poker differ.
Sweepstakes Poker vs. Traditional Poker: Key Differences Every Player Should Know
Understanding Sweepstakes Poker
Sweepstakes poker is a legal alternative to traditional online poker. They provide players with a real money poker experience without violating any gambling laws. Here, the players use virtual currencies like gold coins and sweep coins. The sweep coins are free, and they can be earned mainly through promotions. Thus, poker sites using this model can legally operate in places where standard online poker is restricted.
Many major platforms use this model to attract thousands of new users. With features like daily freerolls and various tournaments, they provide opportunities to earn real money through gift cards and e-wallets. It strategically blends entertainment with tangible rewards, which makes it a practical and legal alternative for those who want a real poker online experience.
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Features of a Sweepstakes Poker Platform
Sweepstakes poker platforms are mainly used in the U.S. because of the strict regulations in most states. These platforms have unique structures that offer real-world award opportunities. Below are the main features that define a sweepstakes site:
1. Dual-Currency System
These sites use two types of virtual currencies: Gold coins and Sweep coins. Gold coins are mainly used during gameplay, but sweep coins can also be exchanged for real-world prizes. Sweep coins can not be purchased; they can only be earned through various promotional activities, logins, or as bonuses when gold coins are purchased. This format helps sweepstakes sites comply with regulations.
2. Legal Access Across Multiple States
Sweepstakes poker platforms are accessible in most of the U.S. states. The fact that sweep coins cannot be directly purchased with cash ensures regulatory compliance. This provides players a legal option without violating federal gambling law. This is a major advantage over traditional poker sites that face strict regulations and legal problems.
3. Promotions and Rewards
Players can earn sweepstakes coins through different avenues, such as frequency of daily logins, completing a specific task, or as bonuses while purchasing gold coins. Some sites even allow players to make requests through postal mail or offer campaigns for a limited time. Then these sweepstakes coins can be redeemed for real-world prizes. This system adds layers of engagement, which helps in the legal framework of a sweepstakes poker model.
4. Exchangeable Prizes
One of the most important features is the ability to exchange sweepstakes coins for real-world prizes. When sufficient balance is accumulated, players can redeem it through ACH transfer, PayPal, Skrill, gift cards, or cryptocurrencies. This feature sets sweepstakes sites apart from casual social gaming and adds a sense of value.
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How does a Sweepstakes Poker Platform Differ from Real Money Poker
Sweepstakes casino website development involves integration of sweepstakes mechanics into the structure, which offers a unique twist on online real money poker. Below is a detailed comparative analysis between sweepstakes and real money poker, explained in a table:
| Feature | Sweepstakes Poker Platform | Real Money Poker Platform |
| Currency Structure | Uses their own virtual currencies like Gold Coins and Sweeps Coins | Uses fiat currencies such as USD, EUR, and crypto |
| Legal Framework | Operates under sweepstakes laws | Operated by gambling authorities in each jurisdiction |
| Entry Mechanism | Entry through promotional models, tasks, or gold coin purchases | Direct entry through cash deposits |
| Redemption System | Sweeps coins are exchanged for gift cards, cash, or crypto | The wins can be directly withdrawn in fiat or crypto |
| Player Demographics | Players are mainly from the US states | Players are from both regulated and offshore markets |
| Financial Risk | No direct purchase of sweep coin reduces the financial risks | Allows high-value financial stakes with real cash transactions |
| Accessibility | Available in most of the US states | Limited to jurisdictions with legalized gambling |
| Game variety | Provides only limited game formats such as NLH, PLO, and spins | Provides a wide range of games, also including inch formats |
| Skill Level and Strategy | Requires a casual to moderate level of skill set | Requires a high level of skill set |
Now, let’s look at the detailed explanation of these differences.
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1. Currency Structure
Sweepstakes poker platforms have a dual currency system. They use Gold coins and Sweeps Coins. Gold coins are mainly for entertainment purposes and are purchased directly, while sweep coins are exchanged for real-world awards. In contrast, real money poker sites use currencies like USD, EUR, or cryptocurrencies. This allows sweepstakes platforms to comply with U.S. laws.
2. Legal Framework
Sweepstakes poker platforms follow sweepstakes law, not gambling law. This helps these platforms to operate in regions where traditional poker is illegal. But real money poker platforms follow international gambling law and must get gambling licences, which limit their accessibility.
3. Entry Mechanism
Sweepstakes poker sites do not use real money directly. Instead, the players buy gold coins, which come with free sweep coins. Also, these sweep coins can be earned through various missions or login rewards. However, real money poker uses cash or cryptocurrency through direct transactions.
4. Redemption System
Players collect sweep coins, which can be used for cash or gift cards. The transactions are completed through ACH transfers, PayPal, or Skrill. In contrast, real money poker buys winnings directly in the currency they deposited. This makes it riskier.
5. Player Demographics
Sweepstakes poker platforms mostly have casual or social gaming players, including U.S.-based players. The barriers to entry are low, encouraging more participation. Meanwhile, real money poker attracts skilled players, and many users play as full-time professionals, mostly in regulated industries.
6. Financial Risk
The system of no direct purchase of sweep coins in sweepstakes sites drastically reduces the financial risk. Players also get real money poker experience with limited monetary exposure. In contrast, real money poker has direct risks that raise the stakes both financially and psychologically.
7. Accessibility
Sweepstakes poker platforms are accessible in most of the U.S., except in a few banned states. They are legal in many regions where traditional poker is restricted. Real money poker is only accessible in a few states, including New Jersey, Nevada, and Michigan.
8. Game Variety
Sweepstakes poker mainly focuses on a few special variants of games. However, real money poker platforms offer a wide variety of games and stakes, starting from micro stakes to high roller events.
9. Skill Level and Strategy
Since sweepstakes poker offers a casual environment, these platforms attract less competitive players. This makes sweepstakes sites more ideal for new players. Conversely, the skill set required for real money poker is very high. Here, players use tracking software, and sometimes statistics.
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Conclusion
Sweepstakes poker is a legal and accessible alternative to traditional online poker. Its dual-currency system reduces the financial risk and legal problems, which were a major hurdle to conventional real money poker. When compared to conventional poker platforms, this model increases access to online poker across multiple states and offers new opportunities to both casual players and serious enthusiasts.
Operators who are aiming to enter this growing market, TRUEiGTECH offers the expertise and technology required to develop the best online sweepstakes poker platforms. With more than 6 years of experience, we have already helped 250+ operators deliver top-performing platforms across the globe. This further makes us fall among the leading sweepstakes software providers in the industry. Connect with our experts today at TRUEiGTECH to bring your vision to life.
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
