Sweepstakes casinos have certainly taken over the US online gambling market—and their meteoric rise is one for the books. While many might just be coming to terms with this form of gaming today, their seeds were sown in the early 2000s with the emergence of sweepstakes parlors.
However, it was not until the early/mid-2010s that a shift to the digital space was most prominent! With names like Chumba Casino leading the pack. Still, for curious minds, the sweepstakes gaming model has superseded regular online casinos, and this has to do with the mode of play, which is based on a “play-for-fun” model (social gaming) rather than a pay-to-play approach.
This loophole has seen them gain legal status in over 40 states, far outpacing the reach of their counterparts. So, what does the future of sweepstakes gaming/casinos hold? And are crackdowns such as those (recently) imposed in Michigan precursors of the end of the thriving industry?
Join us as we tackle the key trends shaping the industry, the evolving legal landscape and cutting-edge advancements propelling the rise of social betting!
The Trend of Sweepstakes Casinos Explained
It is no secret that sweepstakes casinos are reeling in customers in the thousands from traditional online casinos, and experts project we’ll see more of this! They’re a free and trending way to play online slots, and they have undoubtedly carved out a niche in the American gambling landscape.
So, why are they so popular? This has to start with their legality. Their clever workaround has seen them leverage sweepstake laws, allowing players to enjoy casino-style games using virtual currencies (Gold Coins for free play and Sweeps Coins for redeemable prizes). This distinction has been key to their legality and widespread appeal.
Beyond their model, the sweepstakes casino sector’s growth has been fueled by several factors, including free bonuses and promotions, free-to-play games, the social gaming experience (chat rooms, friends list, in-game gift, etc.), the possibility of winning exciting prizes, and innovation (new games, features, and promotions to keep players engaged).
And there’s a lot to show for it! According to research by Eilers & Krejcik Gaming, the sweepstakes market recorded staggering revenue growth of 89% per annum between the years 2019 and 2022, turning in over $3.1 bn in 2022. This was just under half of what the sports betting market delivered in gross revenue in 2022 ($7.5bn).
SweepsKings' Future Predictions for Sweepstakes Casinos
At SweepsKings, we are the number #1 resource for all your sweepstakes-related content! We have put the sweepstakes/social casinos to the wringer time and again, and none is better positioned to give insights into where the industry is heading.
Our team unanimously agrees that the sweepstakes casino industry is set for even more explosive growth. Given the stifled expansion of traditional online casinos and Americans shunning offshore casinos—surpassing even the sports betting industry is not a matter of if but when.
Even so, there are still some hoops we have to jump through, including the ever-changing regulatory landscape and adapting to players’ evolving preferences.
Here’s our compilation of the future predictions for sweepstakes casinos, including the wins and raising/burning developments.
State Availability
On closer examination, sweepstakes casinos have achieved a major milestone in legal success—gaining a foothold in nearly all U.S. states (40+), which contributes to their availability and adoption by players across state borders. However, it’s not all rosy, though! In recent times, lawmakers have set stricter regulations for sweepstakes gaming.
For example, sweepstakes casinos are illegal (explicitly banned) in the states of Washington and Idaho. Other states, like Michigan, Nevada, and Montana, have adopted stricter/restrictive legislation that has seen sweepstakes casino operators withdraw due to concerns over potential legal challenges.
While the legal quagmire has sweepstakes casinos in a chokehold, it is not all grim! We have some wins that may pave the way for the industry’s future. For example, Fliff evaded a ban in California. This comes after a class-action lawsuit that questioned the legitimacy of its operations, with the judge ultimately ruling in (Fliff’s) favor.
It might be a drop in the pond. Still, it demonstrates that with strict adherence/compliance to the sweepstakes gaming model, including the contentious prize redemption system, sweeps casinos may just find solid ground among lawmakers.
Gaming Libraries
On more positives, we predict that the future of sweepstakes casinos will offer players a feast in terms of gaming libraries. Even now, we’re seeing sweepstakes casinos expand their game collection to rival the most established online casinos. And it’s not just a numbers game—no! There has been a trend in the introduction of provably fair games.
For those new to the games, these allow you to verify the fairness of each outcome using unique identifiers (cryptographic keys). Adopting this technology is a step in the right direction, as it builds up transparency and trust from the casino side.
Even better, with more major players joining in to exploit the market, we expect new games, features, and gameplay mechanics tailored exclusively to sweepstakes casinos. In the same breadth, new game categories are not out of the picture, with the popular Slingo (a hybrid of bingo and slots) being a prime example of games tailored to this new player base.
New Launches
With stakeholders/investors seeing the potential that lies in wait with the U.S. market, we are bound to see a flurry of new platforms exploring the market. And this is not unfounded!
For example, 2023/2024 has seen a record-breaking surge in new sweepstakes casinos. We have been keen to evaluate these brands, and they’re as good as it gets, with names like McLuck Casino, Zula Casino, Vegas Gems, and Sweeptastic being on our recommended list.
While we predict that the surge of new platforms venturing in will not stop anytime soon, eventually, this may taper off once the market is saturated. And we’ll see a shift towards more niche offerings. For example, these can be bingo-only casinos, social sportsbooks, poker-themed casinos, or live dealer sites.
Overall, it’s an approach we wholly welcome and anticipate! It is a win-win on all fronts. After all, players will have more tailored gaming experiences, while investors get new opportunities to explore.
Bonuses and Promotions
The bonuses/promotions front is one we cannot ignore, and at SweepKings, we agree that this is poised for a subtle shift. As the industry stabilizes and the player base regularizes (consistent login/activity on site), a realignment of promotional efforts is bound to come next.
But first, let’s backtrack. By no means (or way) do we imply that the welcome bonuses will become smaller—quite the opposite. As a cornerstone for attracting new players, these are bound to get bigger and more generous. However, we may see select regular/recurrent promotions, like the daily login bonus or daily reloads, scaled back, whether in frequency or amount. We reckon operators may opt for this to encourage long-term engagement.
Greater emphasis will be placed on loyalty and VIP programs, notwithstanding personalized offers tailored to player preferences. This is a shift we can draw from casinos and sportsbooks from the world over, and it’s only a matter of time before we see it implemented here.
Purchases and Redemptions
Online gaming (sweepstakes casinos, incl.) and the use of digital payment methods are intertwined. With increasing concerns over the safety of banking/card information, more players are likely to opt for alternatives, such as cryptos (BTC, ETH, LTC, etc) and e-wallets (PayPal, Skrill, etc.), to avoid the hustle.
And it’s not just the conscientious player! Tech-savvy players have also been keen to adopt these banking solutions, as they offer more security and faster transaction times. It is only right to speculate that we’ll see more and more adoption of the two in your coin bundle purchases and Sweeps Coins redemptions.
Along the same lines, we predict that coin packages will increase in value and have higher denominations for players who want more in their bundles. This will cater to all divides (from high rollers to regular players) while granting you value for your money.
Accessibility
Accessibility defines how you’ll enjoy your gaming, and sweepstakes casinos generally deliver exciting gaming experiences straight to your mobile. You can enjoy these casinos from the main website or mobile app. However, it is worth acknowledging that the app route comes with extra costs in development and maintenance to keep it running (from the casino’s side, of course).
Compared to the web browser equivalents, in which updates/changes are universal, it’s easy to see how these brands may opt to lean towards a more refined web browser experience. But don’t get us wrong—that does not mean mobile apps will be scrapped. They’ll still be a popular option for many players.
However, we may see a shift where sweepstakes casinos prioritize their mobile web presence, as it delivers just as enjoyable an experience as an app would. Ultimately, this reduces costs on the operator’s end without cutting down on overall experience, whether in graphics quality, ease in navigation, flexibility, and more.
Transparency and Safety
Among the fast encroaching developments in sweepstakes casinos is the adoption of the “USA-first” approach. From our tests/experience, this is best exemplified by brands like Stackr and Carnival Citi. These are proudly American and have physical U.S. addresses attesting to their transparency and compliance with US regulations.
From the examples, Stackr’s base of operations is 3104 E. Camelback Rd. #906, Phoenix, AZ 85016, while Carnival Citi’s local address is 6171 N.W. 72nd Ave, Miami, Florida 33166. Moving forward, we expect to see brands lock in this approach as a way to pay homage to America and grow the communities from which they operate.
This can be implemented in many ways, such as supporting charities and partnering with local communities. This results in a win for all! While benefiting the community, the casino, in turn, can display these partnerships on its website, creating more of a connection with the player and building up an image as a trusted brand.
Regarding safety, we forecast that more brands will start displaying additional certifications on their websites, not just relying on legal loopholes. Having stamps (badges) of approval from relevant authorities and regulatory bodies will also go a long way.
Through these steps, players can feel more confident and secure in their platform of choice. And to emphasize, this is not just a marketing tactic; it will go a long way toward long-term success in the American market.
Currencies
On currencies, the dual-currency model, namely Gold Coins (GC) and Sweepstake Coins (SC), will remain the way forward for sweepstakes casino gaming. After all, this has emerged as the dominant coinage system, with even Golden Hearts Games rebranding to adopt this model.
Initially, the brand named these coins Unplayed Coins (GC) and Redeemable Coins (SCs). In a move unlike any other, Golden Hearts Games started what we can only hope is a trend—adopting the widely used, traditional coinage that is easy to distinguish, even among novice players.
On another facet, we have to call out casinos deviating from the 1:1 (1 SC is equal to 1 dollar) conversion rate. If you’re new to sweepstakes casinos, this applies when redeeming your Sweeps Coins for cash prizes. We have seen brands stray from this fair exchange rate, which means your redeemable coins will hold less and less value.
We can only hope this phenomenon is nipped in the bud before spreading further.
Social Betting
On new frontiers, social betting is increasingly gaining traction in the sweepstakes casino space. Like in social casinos, this replicates the experience of traditional sports betting, all on a free-to-play premise. You use virtual credits to place wagers and compete against other players instead of the house. Even better, you can also play with Sweepstake Coins and redeem them for cash prizes.
For some time now, Fliff Social Sportsbook has been the lone player (Est. 2019), but we now have a growing roster of similarly exciting sportsbooks like Sportzino, Thrillzz, Rebet, and Kickr. This rise in social betting platforms reflects a trend in the U.S. gaming industry toward community-driven experiences and competitive play.
From where we stand, social betting looks incredibly promising.
As more platforms adopt this format, we can only expect this sector to grow/explode in popularity. The impressive merger between sports betting, social interaction, competitive play, and the chance to win real prizes makes for a compelling proposition in the future of sweepstakes casinos.
Does the Future of Sweepstakes Casinos Look Good for Players?
Absolutely! As shown above, sweepstakes gaming is still in its early years, and we can’t wait to be part of its potential. The team and I are looking forward to refined gaming libraries with variety, provably fair games, and new categories, like Slingo, becoming a norm.
Bonuses are another one of our focal points. How they transition to encourage long-term player engagement remains quite the intrigue. And with the move for more transparency and the adoption of new digital payment methods, we can only speculate that this will draw in players from all walks of life.
Still, there’s the underpinning factor of the legal quagmire. Even so, our hopes are high for the industry going in the right direction (if Fliff evading the ban in California is any indication)—it only gets better from here!