Sweepstakes casinos: A compelling alternative to traditional online gambling platforms
LuckyStreak analyses the sweepstakes casino phenomenon that is changing the online gambling landscape and attracting a huge audience.
Opinion.- The world of online gambling is undergoing an intriguing shift, with sweepstakes casinos emerging as a potential game changer.
These platforms offer a compelling alternative to traditional online casinos, attracting millions of players and presenting exciting opportunities for the industry.
But what is this phenomenon that allows players to win cash prizes and gift cards without placing real money bets? In this article, LuckyStreak looks at the secret of Sweepstakes casinos, and the legal framework under which they operate, and delves into its virtual currency solution.
Understanding Sweepstakes casinos
Sweepstakes casinos offer a chance to play casino-style games and win prizes, usually cash or tokens for rewards. Unlike regular online casinos, sweepstakes casinos are designed to comply with online gambling regulations by using a sweepstakes model instead of real money.
And unlike their traditional counterparts, sweepstakes casinos don’t involve direct real-money wagers. Instead, they operate under a “freemium” model with two virtual currencies: gold coins and sweepstakes coins.
Gold coins (GC) are purchased for cash (or equivalent), have no monetary value, and cannot be redeemed for cash, prizes or withdrawn. They are great for enjoying the social aspect of an online casino and obtaining sweepstakes coins!
Sweepstake coins (SC) cannot be purchased but are used to play games with the potential to win cash. They can be obtained as free bonuses, social promotions, and leaderboards, in compliance with “no purchase necessary” laws. They are held until they are in sufficient numbers to be redeemed for cash.
Players have two wallets, one for each type of coin, and can switch between playing for fun with GC and playing for cash prizes with SC. This dual-currency system ensures legal compliance as well as introduces the unique play dynamic of sweepstakes casinos.
LuckyStreak uses 4-letter currencies (traditional online casinos use 3) to enable sweepstakes and social/ virtual coins.
What is important to note is that these types of games are a great alternative for people who want to enjoy casino games without having to risk real money.
Another notable aspect is its global reach, with sweepstakes casinos catering to players across regions where online gambling regulations may pose challenges for traditional operators. This expansive reach, coupled with the inherent appeal of sweepstakes promotions, positions the market for continued expansion and innovation.
Rory Kimber, LuckyStreak commercial director, points out: “Sweepstakes are an interesting alternative to the more standardised state-by-state licencing in the USA – and offers greater freedom for operators to target players.
“When you consider it has already attracted 85m daily players it’s easy to see why this genre of online gaming has drawn such interest in recent times.”
LuckyStreak’s live games and aggregated slots are now available to play on sweepstakes casinos.
The legitimacy of Sweepstakes casinos
The legality of sweepstakes casinos hinges on their adherence to sweepstakes laws, which vary across jurisdictions. They structure their operations as sweepstakes promotions instead of traditional gambling activities to navigate legal complexities.
To maintain their legality, sweepstakes casinos do not involve direct monetary wagering, and players participate in sweepstakes promotions where the outcome is determined by chance, without requiring any purchase or payment to enter. This distinction enables sweepstakes casinos to offer casino-style games while complying with legal frameworks governing sweepstakes and contests.
Technical and commercial innovations
Technical innovations play a crucial role in the success of sweepstakes casinos. Solutions like LuckyStreak’s seamless integration of high-quality games and support for various currencies demonstrate the adaptability and versatility required to thrive in this evolving landscape.
Erez Cywier, LuckyStreak CTO and co-founder, explains: “The key steps in the development of our sweepstakes solution included adding support for non-FIAT/ cryptocurrencies and being able to support any customised currency our customers use on their platforms. Learning to rethink the way we viewed the players’ currencies to be somewhat more abstract.
“The way we developed this solution would make such integrations almost identical to the standard integrations with traditional casino operators and/or platforms.
“We are totally currency agnostic, whether it’s a FIAT currency, a major cryptocurrency, social casino virtual currency or sweepstake currency. The process is the same, we are a ubiquitous solution in that regard and the level of support and service we can offer any igaming operator is effectively the same.”
Rory Kimber comments: “LuckyStreak spotted the market need for great content that could be seamlessly offered to sweepstakes and social casinos. Erez and his team devised, designed, developed and deployed our solution within a quarter and since then, interest has been huge. We’ve also passed this knowledge through to the slot providers we aggregate, helping explain the changes they’ll be required to implement to be accepted into the sweepstake model.
“From a Live product perspective, we’re developing solutions that allow operators to have our core games available from the outset, by making changes to the ways dealers speak and present, custom sweepstake UI’s and chipsets, and by setting unique table limits on our blackjack tables.”
Late last year LuckyStreak partnered with new sweepstakes platform provider Sweepium to offer its live games and aggregated slots to their growing customer base. From there, interest has grown exponentially.
Kimber adds: “We are at all stages of the deal process with double-figure operators who see the quality of our games and the simplicity and quality of our solution. Allied with that, we have a very experienced and agile development team that adapts to the specific needs of each business, just as you’d expect in a rapidly growing sector.”
Sweepstakes casinos, without a doubt, represent a compelling frontier within the gaming and gambling industries, offering a legal and accessible alternative to traditional online casinos.
