What Are Sweepstakes Casinos?
By
Jane Shaw
Senior Editor Updated: 02/16/2024
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
Sweepstakes Casinos
- US Sweepstakes Casinos: An Introduction
- What is a Sweepstakes Casino?
- How to Play at Sweepstakes Casinos
- Are Sweepstakes Casinos Legal?
- Rewards and Prizes Explained
- Alternatives to Sweepstakes Casinos
- Frequently Asked Questions
Sweepstakes casinos have emerged as a popular form of online entertainment in the US, offering a unique blend of gaming excitement and the chance to win real prizes.
But what is a sweepstakes casino? Well, unlike traditional online casinos, legitimate sweepstakes casinos allow players to win money without spending anything, although purchases can be made. It may be a bit of a gray area, but there’s no denying their popularity – and in this guide, we’re going to answer the question of what are sweepstakes casinos and reveal how they work!
US Sweepstakes Casinos: An Introduction
Sweepstakes casinos are a novel and increasingly popular form of online gaming in the US. Unlike real money online casinos, US sweepstakes casinos operate under the principle of sweepstakes law, which allows them to offer games of chance to a wide audience without the same rules and regulations conventional casinos are subject to.
With that being said, legal sweepstakes casinos are still able to offer a wide variety of casino games, including slots, poker, and table games, similar to what you’d find at a conventional online casino. The key difference lies in how you play; let’s dive into looking at that now!
What Is A Sweepstakes Casino?
A sweepstakes casino, at its core, is an online gaming platform that operates on the sweepstakes model. This model distinguishes itself from traditional online gambling by using virtual currencies instead of real money. These currencies are typically divided into two types: “Sweeps Coins”, which can be used to enter sweepstakes contests – potentially winning real money prizes – and “Gold Coins”, which are used for ‘just for fun’ gaming with no monetary value.
Players can acquire these coins in several ways – purchasing Gold Coin packages, winning them in games, or receiving them through promotions or social media contests. Importantly, sweepstakes casinos give away Sweeps Coins for free, which is a legal requirement for sweepstakes in the US. This approach enables these platforms to operate in a legal grey area, avoiding the restrictions that apply to traditional online gambling.
The games offered at sweepstakes casinos are similar to those found in conventional casinos, and include a wide range of slots, poker, blackjack, and other table games. The gaming experience is designed to be as close as possible to real-money gambling, providing players with an immersive and enjoyable experience.
However, as US sweepstakes casinos aren’t regulated online gambling sites, their casino games may not be subject to the same testing requirements, which is why it’s so important to only play at reputable sites.
US Sweepstakes Laws Explained
The legal framework that allows sweepstakes casinos to operate is based on US sweepstakes laws. These laws stipulate that no purchase is necessary to enter sweepstakes. As a result, any player at a sweepstakes casino must be able to win prizes without risking any of their own money. It’s fine for players to buy additional coins, but there must be real prizes available without any purchase.
How to Play at Sweepstakes Casinos
Playing at sweepstakes casinos is pretty straightforward, although the specific rules can vary slightly, depending on which state you’re gambling from. Naturally, the first step is to create an account on the sweepstakes casino’s website or app. This process usually requires you to input basic personal information like your name, email address, and sometimes, your address.
Once you’ve verified your email address or phone number, you will usually receive a welcome bonus, often including a bundle of the casino’s virtual currencies – Sweeps Coins and Gold Coins.
Once you have your virtual currencies, you’re ready to start playing. The games available at sweepstakes casinos are diverse, ranging from slot machines and table games to poker and specialty games.
While not a universal rule, in general, Gold Coins are used for entertainment and “practice” mode, while Sweeps Coins are what you can use to potentially win real prizes. Why? Because when you play games using Sweeps Coins, any winnings you earn are also in Sweeps Coins. These winnings can then be redeemed for real cash prizes or gift cards, depending on the site’s setup, and the laws of the state you’re playing from.
Are Sweepstakes Casinos Legal?
The legality of sweepstakes casinos in the US is, as mentioned, something of a gray area. As per US sweepstakes laws, the general idea of sweepstakes casinos is that players must be able to play games – and win – without spending any of their own money or making any purchases. However, sweepstakes casinos need to make a profit, which is where gamification comes into play.
Sweepstakes casinos use a somewhat clever approach by offering games that can be played using two types of virtual currencies: Sweeps Coins, which can be redeemed for real cash prizes, and Gold Coins, used for entertainment purposes only.
The main difference – legally – between sweepstakes casinos and traditional online gambling sites lies in the use of real money. While online gambling typically involves depositing and betting real money, sweepstakes casinos operate without directly involving real cash transactions for gameplay. Players can purchase Gold Coins, but these coins have no monetary value and cannot be redeemed for cash prizes.
The key factor here is that Sweeps Coins, the currency that can be exchanged for real rewards, are always given for free, thus complying with the no-purchase-necessary clause of sweepstakes law.
This unique approach allows sweepstakes casinos to legally operate in most US states, even in those where online gambling is otherwise restricted or illegal. However, there are a few exceptions. For instance, Washington state has laws that specifically prohibit sweepstakes that involve gambling elements, making sweepstakes casinos illegal there.
As always, we strongly recommend checking your local laws before joining a sweepstakes casino.
Rewards and Prizes Explained
Rewards at sweepstakes casinos revolve around the concept of winning real prizes without directly gambling with real money. The main way these rewards are – well, awarded – is using a mechanic called Sweeps Coins, which players can redeem for cash prizes or gift cards. The process of obtaining these coins is a key part of the sweepstakes casino model, as they are usually awarded for free through various means like daily login bonuses, social media contests, or as part of a purchase bonus when buying Gold Coins.
The variety of prizes available at sweepstakes casinos is one of their most appealing aspects. Cash prizes are the most popular – and players can redeem their Sweeps Coins for real money, which is then transferred to their bank account or given as a gift card. The value of these cash prizes can vary significantly, from small amounts suitable for casual players to substantial sums that can rival traditional casino jackpots.
In addition to cash prizes, some sweepstakes casinos offer merchandise, vacation packages, or entries into larger prize drawings as part of their rewards program. Again, the important thing to remember is that every player must have a chance of winning all prizes for free.
To provide a clearer picture of the rewards system in sweepstakes casinos, we’ve put together a table, showing some popular rewards at sweepstakes casinos, and a brief description of each:
| Reward Type | Description |
|---|---|
| Cash prizes | Redeemed from Sweeps Coins, cash prizes can be transferred to bank accounts of players. |
| Gift cards | Gift cards are sometimes offered as an alternative to cash prizes, providing flexibility for players to choose their preferred rewards. Gift cards are also used in jurisdictions where real money awards aren’t legal. |
| Merchandise | Some sweepstakes casinos offer physical items as rewards, ranging from electronics to clothing. |
| Vacation packages | A few sweepstakes casinos run vacation rewards schemes, which can include all-expenses-paid vacation packages, although the number of coins required to win is often huge! |
Alternatives to Sweepstakes Casinos
While sweepstakes casinos offer a unique and legal way to enjoy online gaming, there are alternative options for players seeking different experiences. Here are some alternatives to consider:
- Traditional online casinos: For those comfortable with real-money gambling, traditional online casinos offer a wide range of games with the thrill of wagering actual currency. The main advantage of playing at conventional online casinos is that you bet with real money, and you withdraw real money; simple.
- Social Casinos: Social casinos provide a casual and entertaining gaming experience without the risk of real money. They offer a variety of games similar to traditional casinos, allowing players to enjoy the excitement without any financial commitment. However, you should be aware that social casinos do not allow you to win real money or prizes.
- Online Poker Rooms: For poker enthusiasts, online poker rooms provide a dedicated space to play poker against other players for real money. These platforms offer various poker variants and tournaments for both casual players and serious competitors. It’s very rare to find sweepstakes poker sites, so conventional poker rooms are usually your only option if you want to play poker.
