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Gaming regulation in the USA seems to be a continual cat-and-mouse game, and it has been this way for decades (if not centuries). Citizens enjoy playing gambling games, whether it is for real money, virtual currency, or, quite frankly, matchsticks. Much of the thrill is not about the win itself but the anticipation of the win (whether that is financial, a place on a leaderboard, or maybe just a pile of matchsticks!).
However, many lawmakers in the country do not like their citizens to do so and so enact laws to prevent them from doing so. This is not new. As far back as 1638, Massachusetts Puritans enacted America's first law against gambling, based on the Idleness Statute of 1633, which outlawed the possession of cards, dice, and gambling devices, even in one's home. Unsurprisingly, people found ways around the law and started gambling on other things or went 'underground'.
The battle between regulatory oversight and freedom to gamble has been ongoing ever since. Real money gambling is now available almost everywhere, so people can back their hunches on the football predictions, for example. (. However, real-money online casino gambling is still only accessible in a handful of states. That has left a huge gap in the market for some clever minds to come up with a way for casino-loving Americans to be able to access online gambling games.
We wanted to know more about how operators adjust their compliance strategies to remain within the law and how these adjustments affect affiliates and players. We invited Ian Zerafa from independent review site Casino.org to come and talk to us about the changing world of sweepstakes casinos and how they help their readers navigate available platforms.
Bet Mentor
Hi Ian, thanks for taking the time to come and talk to us. We'd expect affiliate companies to focus on real-money gambling opportunities, so why does Casino.org have a whole section with a list of sweepstakes casinos on its US site?
Ian Zerafa
Thanks for inviting me in. At Casino.org, we have been helping players find their perfect casinos since 1995. We invite our readers to explore our expert reviews, guides, and smart tools so that they can play with confidence. For many Americans, their choice of online casino might be social or sweepstakes. We approach these in the same way that we would their real-money counterparts. We want players, no matter where they play, to have the best experience, avoid scammers, and keep themselves safe from gambling harms.
Bet Mentor
Ok, can you just briefly remind our readers how sweepstakes casinos are legal, how popular they are, and whether everyone in the US can access them?
Ian Zerafa
Well, for something to be classified as gambling in the US, it has to involve a potential prize, luck, and a fee to participate. Sweepstakes casinos are not strictly gambling because they offer No-Purchase-Necessary (NPN) routes, such as daily bonuses and giveaways. They also operate a virtual dual-currency system of Gold Coins and Sweeps Coins. The bonus schemes give away massive amounts of these virtual coins.
Players can participate for free using these coins. Initially, rewards are paid out in Sweeps Coins. When these are then used to play subsequent games, any winnings can be 'cashed out' as real money or gift card prizes. This structure allows operators to classify the casinos as promotional contests rather than gambling sites.
They are incredibly popular, and the sector has recently outperformed the real-money online casino gambling vertical (mainly down to availability). It is the country's fastest-growing wagering vertical.
Unfortunately, not everyone can access them because some lawmakers have decided that they are too much like gambling. This is because, despite an NPN route, players can also buy additional coins to continue playing. The conversion to first purchase is around 12%, but some states (including California and New York) have ruled that this means they fall under state gambling laws.
Bet Mentor
So, is it game over for sweepstakes casinos?
Ian Zerafa
No, far from it. It is an incredibly dynamic sector with both sweeps and social casinos operating across the country. Our latest count has 254 individual platforms, so it can be a pretty overwhelming place for anyone wanting to play. Even where sweepstakes casinos have been outlawed, social casinos exist and are incredibly rewarding. The same great software companies provide the games, and live dealer and quiz-show-style games are even available. Sweepstakes casinos and social casinos understand the feedback loop and tailor their games to be appealing and entertaining.
Bet Mentor
How do you help players find the best sites for what they are looking for?
Ian Zerafa
Our mission at Casino.org is quite simple. We aim to provide the best independent (and free) advice to all our readers so they can have the most fun playing. Regardless of whether real money or virtual money is being staked, online casinos take people's time, and we always want them to have the best experience and avoid possible gambling harms. Not all sites are equal, and some are definitely superior to others.
We look at a variety of features ranging from apps and games to bonuses and VIP schemes. We believe that sweeps and social casinos should in no way be an inferior experience to playing on real money sites. So, we check out:
- The range of high-quality apps built for modern smartphones
- Game libraries with the highest caliber of games
- Bonuses – everyone should be able to try a new sweeps casino with a no-purchase bonus, whose terms and conditions should be transparent and clearly outlined.
- Safe and secure playing environment – while you might not be spending real money, we still want to ensure that the sites keep customer data safe.
Customer services – while many people will never need to contact them, these sites must have fast, responsive customer service in case anything goes wrong. - Acting responsibly – these casinos still take your time, and we want to make sure that they operate responsibly.
- Easy coin purchasing and redemption – although no sweeps casino requires a player to purchase coins, many players do, and the process should be friction-free.
Bet Mentor
Are there any other alternatives that the industry is introducing to avoid non-compliance?
Ian Zerafa
Yes, parimutuel gaming is gaining attention. Payouts are determined by live horse-racing pools rather than by traditional RNG payouts. The sites offer the same casino-style games, such as slots and roulette, and are legal in states where other gambling platforms are outlawed.