Sweepstakes casinos broke records by making more than regulated casinos in the US for the first time in 2024. Analysts have estimated that players spent between $8.5 and $10.6 billion on Gold Coin packages and bonus Sweep coins for redeemable prizes. Roughly 12% of players ever make a purchase, but just that small number led to the massive growth of the casino niche over 12 months. In 2023, players only spent around $6 billion and generated $1.9 billion in net revenue after prizes for the industry.
New players and more spending from existing gamers have almost doubled the market, with people becoming more interested in the prize game that's often more lucrative than standard casino payouts in terms of frequency.
Read on to find out how these prizes are changing online gaming.
How Sweepstake Casinos Are Different From Standard Online Casinos
We can't say one is better than the other. There are some distinct differences between sweepstakes casinos and standard online casinos.
Legal status and accessibility
Sweepstakes casinos use content and sweepstakes laws. They don't follow the standard principles of online casinos, meaning they can operate legally in almost all US states, even if gambling is otherwise illegal.
They are generally considered promotional free-to-play sites rather than “gambling” in the legal sense. Standard online casinos must be licensed and regulated in specific jurisdictions, and are only accessible in those states or countries that allow real-money gambling. This distinction allows sweepstakes sites to fill a niche in markets with gambling restrictions.
Virtual currency model
You don't wager real money directly on sweepstakes casinos. You'll typically get virtual credits, often called Gold Coins, for standard play that aren’t exchangeable for cash prizes, and separate Sweepstakes Coins that are. Depending on the iGaming platform, they may be called something different related to the brand, but they'll always be a virtual currency redeemable for prizes.
You typically get a stash of Gold Coins free when you sign up, and you can obtain more by purchase or free bonuses. When buying Gold Coins, you receive bonus Sweepstakes Coins as a promotion. To remain legal, these Sweeps Coins cannot be bought outright. Players can only get them through bonuses or free methods.
Wagering and prizes
Sweepstakes casinos feel like standard online casinos. You still play the same games (mostly) and have the gratification of a win, even if it isn't money going back into the bank. The loophole is that the Sweep Coins players win on games can be redeemed for real money and other prizes.
Essentially, sweepstakes sites use a prize redemption model.
This difference also means sweepstakes operators return a large share of purchase value as prizes. Roughly 65–70% of the Gold Coin package spend is paid back out as prize winnings across the player base (RG.org).
No risk and real stakes
No deposit needed means lower risk. Technically, the player is free indefinitely if they can use daily login bonuses or offers from promotional emails. This attracts a more casual, entertainment-focused gamer. Traditional online casinos involve real financial risk. Players must wager their own money, making these sites the domain of more serious gamblers comfortable with the possibility of loss.
Prizes vs Cash: What do Players Want?
Most would say both, but the reality depends on the gamer and the bankroll available.
Surveys and usage data from 2024 to 2025 state that cash does win for most players. According to a large American Gaming Association survey (2025), 68% of sweepstakes casino players said their primary goal is to win money (Casino Beats).
Within that study, 69% described sweepstakes sites as places to wager “real money,” showing that players mentally equate the experience to cash gambling.
You can see this preference in how players embrace the virtual coin system. The same study found 95% of sweepstakes casino users value the redeemable Sweeps Coins highly. Essentially, players buy Gold Coins because they come with those bonus Sweeps Coins that hold cash value.
That said, non-cash prizes do have an appeal for a segment of the audience. New American sweepstakes casinos will allow winners to redeem for:
- Gift cards
- Merchandise
- Cryptocurrency (crypto sweepstakes casinos)
- Cash payouts
- Other rewards
Nobody can argue with those freebies.
The Best Sweepstake Casino Games
Sweepstake casino games are similar to the standard casino games. The only difference is the concept of depositing and the prizes. Some of the best sweepstakes casino games include:
- Slot machines
- Table games
- Live dealer games
- Speciality and instant win games (digital scratch-off lottery tickets or arcade-style games)
And they're just as fun as standard casino games. There's also more of a community vibe. There are chatrooms, live leaderboards, and more competition.
Sweepstakes casinos are changing the prize game, literally, by letting gamers play their favorite casino games without worry and still get something back from it. They're easy to use, fun, and a risk-free option to standard casino games.
