A new 2.9% processing fee has been added to coin purchases at Legendz sweepstakes casino.
Some players recently noticed they were getting charged a little extra when buying Gold Coin (GC) and Sweeps Coin (SC) bundles, assuming it was a sales tax. However, after speaking to Legendz, SweepsKings can confirm this is simply a processing fee that the site has decided to levy on coin bundles.
Legendz updated its terms & conditions on December 1; the site also sent an email out to players about the change, although the email did not specify the content of the changes.
Players should direct their attention to clause 7.6 under the ‘Purchasing Gold Coins’ section.
“7.6. We may charge a fee for the processing of a purchase, in our sole discretion. Any applicable fee shall be displayed to the customer during the checkout process.”
This means the extra amount is not a government-mandated sales tax, but likely to compensate for processing charges from payment processors, which are typically set at 2.9%.
Legendz Isn’t the Only Sweepstakes Casino Adding Purchase Fees
WOW Vegas users may have also noticed 2.9% being added to the payment total when purchasing coins, although WOW caps the fee at a maximum of $10 – if you’re spending upwards of around $340, you’ll be maxing out that cap.
Coin purchases at Chumba and the other VGW sweepstakes casinos (LuckyLand Slots and Global Poker) are also subject to an additional fee, but here it’s a bona fide sales tax.
When we spoke to Chumba’s support team, they confirmed this with the following:
“Gold Coin purchases are subject to tax, depending on your location. Chumba Casino in certain states is registered to collect tax…To ensure accuracy, we automatically calculate the exact rate at checkout based on your physical location. You’ll see any applicable tax clearly listed before you complete your purchase.”
Players in most states still won’t have to pay the fee, but if you’re in one of the states where VGW has deemed this necessary, at least you know it’s a real sales tax. Depending on your state and local rates, this can range from around 4% of the bundle’s value up to closer to 10% of your purchase.
VGW became the first sweeps brand to collect voluntary sales tax in July, likely in an effort to legitimize its operations during a year when legislators and officials are seeking to crack down on sweepstakes games and label them as illegitimate and unlawful.
In fact, the Louisiana Department of Revenue called VGW’s bluff in September, filing lawsuits against it and MW Services (WOW Vegas) for a supposed failure to pay sales tax on virtual coin products.
How to Mitigate Fees and Sales Taxes at Sweeps Casinos
Collecting additional fees at checkout seems to be a gradually growing trend from sweepstakes casinos, whether it’s for tax purposes or just a fee the platform has decided to levy for whatever reason.
The fees like the ones at Legendz and WOW Vegas are relatively low, while the sales taxes at VGW’s sites may get a little higher.
To mitigate this, be sure to look out for the best possible coin promotions and offers, including first purchase offers straight after signing up, and seasonal deals like those during the Christmas period. The better promotions can often reward you with up to 200% extra free Sweeps Coins, canceling out any fees or sales taxes.
Remember, SweepsKings is the best place to keep track of the most valuable deals on coin bundles, as well as all other aspects of the sweepstakes casino experience.
Author: Bogdan Lunkan
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