Idiot’s guide to sweepstakes casinos

Most of your questions about the rapidly growing vertical answered in one handy conversation.

If you’re on an orbit passing anywhere near Gambling Land, there’s a pretty good chance that in recent months you’ve observed a newer subset of online casinos – popularly referred to as “sweepstakes casinos” – gaining traction. Chumba, High 5 Casino, McLuck, Pulsz, any of these sound familiar?

Well, their growing collective revenue and visibility has bubbled high enough to put the category on the American Gaming Association’s enemy list, likewise for certain lobbyists of regulated operators who have identified the category as a clear and present competitive threat.

But you’re not here for us to wax poetic about lobbying turf wars. The purpose of this conversation between us and you, dearest dimwit, is to identify these so-called “sweepstakes casinos” and explain what they are and how they exist.

Your questions answered
So, let’s just start right here. You ask:

What is a “sweepstakes casino”?

It’s a social online casino – which is a website or app where people can play digital and live-dealer casino games online – that offers sweepstakes promotions. The common use of sweepstakes in the name refers, basically, to the mechanism that allows the casino to operate for actual stakes legally.

Is that because online casinos are not legal?

Well, online casinos are legal and regulated by governmental agencies in seven US states so far (Connecticut, New Jersey, Michigan, Delaware, Rhode Island, Pennsylvania and West Virginia), but in the other jurisdictions, state law does not expressly authorise them. However, the operators of these social casinos with sweepstakes promotions are (based on my information) entirely complying with a subset of laws governing sweepstakes contests that, in effect, makes them legal and compliant.

Read the full story here.

Casino Reports is an independently-owned publication dedicated to covering the regulated US online
casino/igaming industry, with news, features and original reporting on industry happenings, business, legislation, regulations and more.