Home Sweepstakes Casino Software Understanding the Sweepstakes Model for Legal Poker Sites in the U.S.
Understanding the Sweepstakes Model for Legal Poker Sites in the U.S.
Sweepstakes model gaming is earning quite an upper hand in the gambling scenario of the United States. Although, what sweepstakes poker sites do is mimic the experience of an online gambling platform, it is still driving significant traffic and making the industry more competitive. Advanced and innovative technology has already started to rule the sweepstakes poker site design and development. If you are an operator launching a sweepstakes poker site, then here are some of the key insights that you need to grasp today.
This blog aims to explore the details of the sweepstakes model in legal poker in the US, the structure of the model, and the advantages that a poker sweepstakes software provider can offer the operators. Keep on reading.
Table of Contents
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What Is Sweepstakes Model Poker?
A sweepstakes model of poker is a gambling-like structure for offering poker. Technically, it is a promotional or contest-style platform that is not defined as an online gambling platform. Sweepstakes poker sites are offer entertainment in jurisdictions where real money gambling is illegal. As a sweepstakes sportsbook software imparts a poker gambling-like experience, but is not actually an online poker gambling site, it does not have to comply with the guidelines that govern online casino real money gambling.
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How Is A Sweepstakes Model Poker Different From Real Money Poker?
Users can enter the platform and start playing the games without making a real money transaction. Sweepstakes platforms do not accept real money cash; rather, they offer different types of in-game currencies, like sweeps coins or gold coins.
A user can earn sweeps coins by taking part in promotional events. Gold coins can be purchased. Certain gold coin purchases can also offer sweeps coins bonus. However, the gold coins do not have any real-world cash value associated with them. The sweepstakes platforms do have to adhere to certain legal guidelines that mandate the purchase of sweeps coins under particular qualifying conditions. However, they are not as complex as the laws of online real money gambling.
Why Is The Sweepstakes Model Legit In U.S. States That Do Not Allow Gambling?
There are many American states that have strict views on online gambling. While some of them have big restrictions, some others totally ban online gambling. No resident can take part in online gambling from the jurisdiction, and no provider can offer gambling to the jurisdiction. However, the majority of these states do not ban sweepstakes model poker. The reason is that sweepstakes poker does not ask for a wager to enter. It offers free entry to the users. The user also does not have to wager any real money or purchase anything to qualify to win a prize. However, the player can later redeem winnings for a real money prize.
Also, sweepstakes winnings are not based on player skills or gameplay strategies. Rather, the majority of the sweepstakes poker sites choose their winner randomly based on luck. Still, the right use of a suitable strategy can contribute to the winnings.
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Behind The Operation Of A Sweepstakes Poker Site
In this section, the operators can discover what happens behind the sweepstakes casino poker site and how it actually operates.
- A user approaches the platform and signs up for an account. This is a free account, and no real money payments are involved in the creation of this user account.
- Now the user proceeds to enter the platform. This is a no-purchase entry method. Although users have an option to purchase gold coins while entering. Again, these gold coins have no value at all and are completely for entertainment purposes.
- Users proceed to join games. There are tournaments, sit-n-go model games, and more. Gold coins or sweeps coins are used for this.
- Now, after the game, if the user wins, they redeem their used sweep coins for real-world cash or prizes.
All these steps are subject to in-depth scrutiny, and the sweepstakes poker platform has to completely adhere to the promotional or contest laws of the jurisdiction.
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Pros and Cons of Sweepstakes Model Poker Sites
Benefits of a Sweepstakes Model Poker Site
The best sweepstakes software distributors make sure the platform has all the necessary features to attract a user base. Let us look at these pros:
- Market Accessibility: Sweepstakes poker models have easy market accessibility. It can be offered in a wide range of markets inside and outside the U.S. There is no prolonged wait to get into the market, like the online gambling platform has to do. Also, the software solutions take care of this when you choose the right model.
- Increased User Base: Sweepstakes operators can drive traffic much more easily than any other entertainment platform. Marketing for a promotional platform is not as complicated as an online casino. Also, it can have players from both gambling-permitted and gambling-banned regions.
- Lesser Legal Frameworks: A sweepstake poker site does not have to acquire a license to operate in the majority of platforms. This is a direct cost cut.
- Dual Currency Method: Since a real money wager entry is not present, and a sweeps coins or gold coin entry is present, sweepstakes poker sites have higher monetization flexibility.
Challenges Faced By Sweepstakes Poker Sites
- Regulatory Oversight: It is true that sweepstakes poker sites do not have to comply with real money gambling laws. However, they still have to adhere with the consumer protection, digital privacy, and advertising laws.
- Certain Platform Restrictions: Social media platforms and search engines like Facebook and Google impose strict guidelines on sweepstakes marketing. The platform requires explicitly quoting free entry, and there should be zero implications of gambling. The market should portray the platform as a completely promotional contest site.
- Banking Limits: Reputed banks and payment partners might not be interested in working in partnership with a sweepstakes platform. Therefore, operators need to sign deals with digital entertainment or gaming-related PSPs.
- Jurisdictional Restrictions: Certain states and countries specifically ban sweepstakes platforms, and any online casino or real money gambling style entertainment platforms.
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Conclusion
Sweepstakes model poker sites have an increasing acceptability in the US market. They offer a heightened sense of scalability and fewer legal complications simultaneously to the operators. It is true that sweepstakes poker does not require the operators to have a traditional license, and is legal in most states. However, there are still certain regulations that these platforms have to adhere to. The best option while entering this business is to partner with a reputed sweepstakes casino website development team.
We at TRUEiGTECH offer future-proof solutions. We are proud to say that we are the sweepstakes software distributors for 100+ businesses running successfully in the U.S. and global markets. Call us today!
FAQ - Understanding the Sweepstakes Model for Legal Poker Sites in the U.S.
A sweepstakes model online poker is a platform where players can use virtual currencies to enter the game. It removes the consideration element of online gambling and is available even in those states that ban online real money casino gambling.
The sweepstakes poker site generates revenue by selling virtual currencies to the players.
No, the purchase of the gold coins is not mandatory at all. Players can enter the platform even without purchasing any gold coins. In fact, the gold coins do not even have any real money value associated with them. However, it can enhance the quality of the gaming experience.
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
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