Sweepstakes Casinos: Play Casino-Style Games Without Making a Deposit!
While no one can say the exact date when online gambling was born, most agree that the ice-breaking year for this branch of entertainment industry was 1994, when the Free Trade and Processing Act (FTPA) was enacted. It was the year when Microgaming was established, signaling the beginning of a new era.
As one of the fastest evolving sectors, iGaming is witnessing numerous changes on a daily basis, resulting in more and more gambling options. One of them are sweepstakes casinos, platforms which garnered the interest from consumers from all over the world for allowing them to gamble without mandatory deposit.
That’s right, such casino pages give players a chance to explore multiple games, and exercise their skills, without requiring them to use funds. Their number is growing rapidly, which confirms that they are here to stay.
Yet, no matter how simple and straightforward their philosophy seems, not all the countries are thrilled with this concept. As a matter of fact, some strongly disapprove and prohibit its residents from accessing them. One such example are United States, in which some states have favorable attitude towards sweepstakes casinos, and the others explicitly ban them.
In this guide we shall try to cover all the important segments of sweepstakes casinos and help you understand how they work and whether they are the right choice for you, so stay tuned!
What Are Sweepstakes Casinos?
Sweepstakes casinos are online gaming platforms where players can enjoy traditional casino games by using virtual currencies, and win prizes, including cash, but without being obliged to make real money purchases.
Unlike real money casinos, sweepstakes platforms operate under different regulations, making them available in areas where online gambling is restricted or banned. To play at a sweepstakes casino, users need to use two types of virtual coins: Gold Coins and Sweeps Coins.
Gold Coins are used for playing games like slots, poker, blackjack, and scratchcards, but the coins won in these games cannot be redeemed for cash or prizes. Sweepstakes Coins, on the other hand, are the coins that players can use to redeem for prizes or cash. These coins cannot be purchased directly but can be obtained through various bonuses, events, or as a bonus when buying Gold Coins.
The age limit in US for sweepstakes gaming is typically 18, with there may be exceptions. Online casinos generally have a 21 and older set as the minimum age limit, but that differs from one platform to another, and one country to another.
The Legality of Sweepstakes Casinos
To be able to fully understand the legal aspect of sweepstakes casinos, you need to be clear on its definition first. Quite often, people mix sweepstakes, contests and lotteries, these three have some notable distinctions.
For starters, mind these elements:
- Prize- anything of value, which involves both goods and services with monetary value
- Chance- a random drawing in which participants have no control over the outcome of the game
- Consideration- an entry fee or some other action which involves making a purchase
Now, when it comes to what’s involved/ required in these competitive events, the situation looks as follows:
- Sweepstakes involve prizes and chance, without consideration
- Contests involve prizes and consideration
- Lotteries involve all three elements
So, the fact that some prizes can be acquired in an event where winners are selected randomly is what makes sweepstakes legal. At least in a vast majority of states.
On the other hand, some legislators believe that the way sweepstakes casinos operate represents exploiting a loophole, so they outright ban their residents from taking part in such activities. Analyzing the Terms and Conditions, you will notice that most sweepstakes casinos exclude the following- Alabama, Delaware, Georgia, Idaho, Kentucky, Nevada, Louisiana, Michigan, Montana, Washington, and any other jurisdiction outside the United States of America.
So, sweepstakes casinos generally describe themselves as US-friendly, that doesn’t mean that they can be accessed from every US state. To eliminate all the doubts, players are advised to check the terms.
Explaining the Difference Between Gold Coins and Sweeps Coins
As mentioned earlier, sweepstakes casinos have a dual-coin system, allowing players to play games by using one of two types of coins-Gold Coins and Sweeps Coins. Most often, they are named like this, except for Gold Coins whose name may be slightly different, for example, branded.
They function as follows- Gold Coins (GC) are used to play all games available on the website while Sweeps Coins (SC) let players participate in promotions and redeem their winnings for cash prizes. Gold Coins are purchased, whereas Sweeps Coins are earned through daily bonuses, loyalty rewards, welcome offers, and sending a letter/ mail with a request or obtained alongside a selected package of Gold Coins.
Winnings from SC can be exchanged for real money, whereas GC winnings are not redeemable or withdrawable in the same way. They are only used for further play.
This unique structure makes sweepstakes casinos a popular and legal alternative to traditional online gambling in areas with strict gaming laws, but as already explained, are not accepted in all states.
When it comes to purchases at sweepstakes casinos, players must know that they are not mandatory, which is the point they differ from deposits at traditional online casinos. Coin purchases do not increase chances of winnings, they simply equip consumers with more playing credits for extended playing sessions.
Similar to this, prize redemption is not the same as withdrawal, because it doesn’t necessarily involve real money. Prize can come in the form of a gift card or some merchandise, for example, but can also be credited as a real cash voucher.
Simply put, sweepstakes casino doesn’t involve a mandatory investment on a player’s behalf, whereas the traditional casino does.
As for the payment methods used to purchase GC, they include cards, PayPal, Skrill, Online Banking, Apple Pay and Google Pay and rarely some cryptocurrencies such as Bitcoin and Litecoin.
Are Social Casinos and Sweepstakes Casinos the Same?
While some players do use terms “social casinos” and “sweepstakes casinos” interchangeably, it is important to note that they are not exactly the same. Their concepts are intertwined, but there are some significant differences between them.
Social casinos are mainly available through social media and app stores, featuring a broad selection of casino-style games. These casinos offer free-to-play mode, with optional in-game purchases, but they don’t offer the possibility to withdraw, that is redeem winnings as real cash.
The main focus of social gambling platforms, is, as their name says, social aspect and interaction. Players can take part in leaderboard challenges, and share their achievements and results on social media platforms, making the whole experience additionally engaging.
All in all, the simplest way to define these two types of gambling would be to say that not every social casino is a sweepstakes casino but all sweepstake casinos are social casinos.
Popular Providers of Sweepstakes Casino Games
Realizing how huge the potential in sweepstakes casinos lies, providers of standard casino games started exploring the options on how to optimize their content for such platforms.
Perhaps still not as impressively large as array of content suppliers who craft standard casino games, the number of studios who develop sweepstakes casino games is growing steadily. Payng attention to the lobbies, you will see top-performing names such as BGaming, 1Spin4Win, GameArt, Booming Games, 3 Oaks Gaming and many more.
When it comes to genres, there’s a plethora of slots, in the first place, followed by other popular categories such as table games like roulette and blackjack, as well as video poker. Products such as Crash, Dice, Imbo, Plinko, Keno and similar are featured as well, alongside Provably Fair games.
The Advantages and Disadvantages of Sweepstakes Casinos
While the fact that no mandatory purchase is involved does seem like the most obvious benefit which could put any potential drawbacks in the shade, that’s not the only aspect players should mind when analyzing whether sweepstakes casinos are the right choice for them.
One of the key benefits of sweepstakes casinos is that they provide a wide range of free-to-play games. Yet, traditional online casinos beat them in this regard, simply because the concept of sweepstakes casinos is newer, and software provider are yet to join.
As already noted, players don’t need to make any deposit to enjoy these games or participate in promotions, as sweepstakes casinos operate on ano-purchase-necessary basis. This makes them accessible in many US states, even those where real-money gambling is prohibited.
However, sweepstakes casinos also come with some downsides. One major limitation is that the redemption of winnings is often subject to certain restrictions, which can be frustrating for players.
Additionally, compared to traditional online casinos, sweepstakes casinos tend to offer fewer and lower-value bonuses. That’s the field, on the other hand, where real money casinos excel, offering players a variety of welcome deals, cashback bonuses, reload bonuses, and so on.
Customer support can be limited, with many operators not offering live chat or phone support. As a result, resolving complaints can be a lengthy process.
Last but not least important concern is that a vast majority of sweepstakes casinos run business without a license, which may lead to a lack of credibility. On the other hand, knowing that no real money purchase is required, players can check out as many games as they want for free- without any risks.
All in all, sweepstakes casinos represent an interesting alternative to real money casinos. The free-to-play model makes them accessible in states where traditional online gambling is not permitted. Disadvantages come in the form of fewer rewards, limitations on cash redemption, and limited customer support options.
Players seeking a different, legal form of online gaming might find sweepstakes casinos appealing, but they should be aware of the shortcomings that come with this model. Now that you know all there is about sweepstakes casinos, have fun exploring these platforms & gamble responsibly!
