Over the past decade or so, the American online gaming landscape has undergone major transformation, emerging from obscurity to become one of the most diverse and exciting markets anywhere in the world. Sports betting has of course taken the limelight, erupting in popularity from New York to Oregon, however other gaming formats have too experienced impressive market growth.
Sweepstake casinos offer a key example, blossoming in regions where real money iGaming remains prohibited, providing players with enticing, immersive gameplay within the confines of state legislation. Yet, 2025 has seen somewhat of a backlash against the sweepstakes market, with several regulators passing laws to limit operations. What does this mean for the sweepstake casino world going forward?
We talked to Ian Zerafa, Casino.org’s content manager and industry expert, to find out more about how to enjoy a sweepstakes casino safely.
Hello Ian, thanks for taking the time out of your busy schedule to chat with us today. Before we get onto the fascinating topic of sweepstake casinos, it would be great if you could talk us through your background in the iGaming industry?
Hi, no worries at all, I’m excited to share my knowledge with you and your readers.
I’ve been working in the sector for over four years now, starting off as a content editor at Time2Play before working my way up to become a Content Manager with Casino.org. My work is a combination of informative writing, online fact-checking and casino reviewing, helping to elevate the gaming experience for players. While I have covered countless global markets, my true expertise lies in the U.S. market, where I now lead a team.
It seems you entered the industry just as the American online gambling scene was taking off. What has been your experience of its evolution since 2021?
Yes, absolutely. When I started out, the U.S. gambling landscape was experiencing major changes as a result of the PASPA repeal in 2018. This landmark bill was instrumental in bringing regulated sports betting to the states, and when I started out in 2021, regions like Wyoming, Connecticut and Wisconsin were following the likes of New Jersey by legalizing online sports wagering. Since then, this arm of the iGaming industry has gone from strength to strength, legal in thirty-two states and generating over $11 billion last year alone.
Online casino operators have found it much harder to breakthrough though. While revenues have shown promise, many jurisdictions simply haven’t amended laws that prohibit their activity.
Interesting. So, while online sports betting has been widely embraced across the U.S., real money online casinos remain prohibited in most states. Is this where sweepstake casinos have found their place in the market?
Exactly. There are only seven states that have legalized real money online casinos, but casino style games are popular right across the country. Consumer demand for regulated gaming has therefore led to the prevalence of sweepstake casinos instead, which rather than being governed by gambling laws, are controlled by the same consumer protection laws that deal with other sweepstake competitions and giveaways.
And, Ian Zerafa, how exactly do these sweepstake casinos work?
Well, just like other sweepstake competitions, these casinos must adhere to the ‘no purchase necessary rule’ in order to comply with regulations. Essentially, players do not have to spend any money to play and can enjoy a sweepstakes casino knowing that no funds are entering or leaving their account. This is what separates them from traditional real money platforms.
The interesting part, however, is the dual-currency system that many platforms use. Virtual currency, A, let’s say, can be acquired and used to play for fun where no real money can be won. A second currency, B, can then be obtained through promotions or through purchasing currency A. This second currency can then be used to play for cash prizes. So, while free play is available, there is a way in which a cash prize can be won too.
2025 has seen a number of jurisdictions crack down on the sweepstakes market, would you be able to explain to our readers the current regulatory challenges facing the industry?
Obviously, the fact that real money prizes can be redeemed at sweepstake casinos has presented an issue for some state regulators, claiming that they operate in a legal loophole to allow real money gambling where it is prohibited. This year, several states including New Jersey, Montana and Connecticut have outlawed sweepstake platforms, presenting a rising tide of change in the country. While the majority of sweepstake markets have withstood legal challenges, there are indications of further disruption ahead.
Okay, so looking ahead to next year, do you predict any more legal hurdles?
Certainly yes. In October, California passed a bill to prohibit sweepstake platforms there, with the ban set to take effect on New Years Day. As one of the biggest consumer markets in the U.S., this could present a major loss for sweepstakes operators. Elsewhere their remains debate on the long-term presence of the sector in both Massachusetts and Maryland.
But it is important to remember that the majority of markets remain very much legal, and importantly they are still hugely popular amongst players and highly profitable for companies. While legislative change is certainly in the air, the continued success of sweepstake casinos will stand them in good stead across many states.
And what about for players, do you see further improvements to the user experience on the horizon?
Advancements in gaming technology is developing all the time, with everything from gameplay and graphics to enhanced security and financial features improving on the daily. Since starting out, I’ve seen platforms evolve significantly and I see no reason why this won’t continue to be the case going forward. Particularly in terms of gameplay, where the latest VR and AR technology is really starting to kick on, creating immersive gaming environment like we’ve not seen before.
Thanks very much for sharing your insights with us today Ian, it sounds like an interesting time in the sweepstakes casino world.
It very much is. It’s been great talking with you.
