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Sweepstakes casinos are sweeping the nation as consumers flock to them for the opportunity to enjoy traditional casino games and win incredible prizes. The US, in particular, has proven to be a fertile breeding ground for sweepstakes operators, but many people are questioning why it has taken off in such a way.
Sweepstakes Accessibility Makes Them a Popular Option Among US Consumers
Gambling in the US is a complicated topic, with state autonomy resulting in a fragmented market. Put simply, each state has the power to decide its own gambling regulations, meaning that rules differ significantly depending on where consumers live.
While the sports betting industry, real casinos, and tribal casinos are all thriving in the areas where they operate, the online gambling industry is playing catch-up. The majority of US states currently offer licensed online sports betting facilities, but only seven states have legalized online casinos.
Licensed online casinos are enjoying great success, earning billions in revenue and contributing to local communities through tax and license fees. Affiliate iGaming, marketing campaigns, and online casino deals help to attract customers to sites, with a wide variety of games to choose from.
This means that online gambling markets are relatively limited for millions of Americans, leading to legal alternatives growing in popularity. Sweepstakes are able to bypass gambling regulations by operating a dual currency model that results in “free play” for consumers.
Gold coins allow customers to play online casino games for fun, with no prizes being issued. Players can top up gold coins by buying bundles, and are often rewarded with free sweepstakes coins. Sweepstakes coins can also be earned by carrying out specific tasks, and because players don’t pay for them, they are technically seen as a free currency that players can use to win real prizes.
This legal loophole is being challenged by some states, but it currently offers a way for US consumers to play casino games and win cash prizes, products, experiences, and a variety of other things.
How Sweepstakes Compare in Other Markets
Sweepstakes enjoy popularity in other global markets, but are more popular in regions where online casino gambling is restricted. Canada operates similar gambling regulations to the US, where provinces determine their own laws. Online casinos are not widespread, resulting in sweepstakes casinos growing in popularity.
In the UK, sweepstakes casinos still attract a good amount of customers, but its less restrictive online gambling regulations mean that consumers are able to access online casinos much more easily. While operators must adhere to strict rules, there is a great choice of online casinos for UK bettors to choose from.
The Alternatives Available to US Consumers
Outside of Rhode Island, New Jersey, West Virginia, Delaware, Michigan, Pennsylvania, and Connecticut, online casinos are prohibited from carrying out operations. This has resulted in a spike in popularity for sweepstakes casinos and alternative betting markets, including land-based retail and tribal operations.
Tribal casinos are made legal through compacts agreed with local governments, while retail casino operators must adhere to local regulations in states where casino betting is legal. As well as casino betting, race tracks are a popular option that attracts bettors who enjoy live betting action.
Sports betting in the US was transformed when the PASPA (Professional and Amateur Sports Protection Act) was overturned by the Supreme Court in 2018. Previously, under the act, sports betting was prohibited in the US, apart from in Nevada, and limited to a minority of other states.
It was argued that this conflicted with the Tenth Amendment, and a ruling allowed states to determine their own regulations. Since then, dozens of states have moved to legalize retail and online sports betting markets, generating hundreds of billions in revenue.
The US gambling industry landscape is constantly changing, with regulations having to be updated to apply to technological developments. Campaigners are using states with greater freedom as an example of how regulatory change can be beneficial, and the popularity of offshore betting could also be a catalyst for change.
While operators can’t set up gambling sites in certain states, offshore operators can still be legally accessed by citizens. Licensed in other countries, these sites provide a platform for players to enjoy their favorite casino games.
It has been argued that states are losing out on millions of dollars of revenue by not offering an alternative. With US citizens having access to online casino platforms, prohibition appears to be failing in its attempt to protect locals. Legalizing online casino markets would provide states with a massive revenue increase and would also give regulators greater power over how these sites could operate.
At present, the popularity of offshore betting sites and sweepstakes casinos completely undermines the authority of local regulators, and as online connectivity and mobile technology improve, this will increase.
Regulatory change is inevitable in many states, with some bills coming close in recent years. Offshore operators that are licensed in other countries are seen by many as more of a risk, with no local jurisdiction over how they can act and deal with issues. The vast majority provide fair and transparent services, but campaigners will use this opportunity to try to force future change.
Conclusion
Sweepstakes casinos offer players a way to enjoy traditional casino games where they can either play for fun or attempt to win prizes. The disjointed nature of the US gambling industry has resulted in confusion and limited betting opportunities for many citizens, and this legal alternative has been extremely popular.
It is likely that regulatory change could impact betting markets in the future, with many states seeing how tax revenue, in states where online casinos are legal, is being used. While this could result in a more competitive market for sweepstakes operators, they will still offer an alternative to traditional gambling methods that appeals to customers.
Whether bettors want the excitement of casino games for fun or have the intention of winning prizes, sweepstakes casinos are an option that has improved access for millions of Americans.