Legality In Question, State Attorneys General May Target Sweepstakes Casinos

Sweepstakes casinos have sprung up to fill the gap left by the fact that only seven states in the United States allow real-money internet casino gaming, or “iGaming.” These unregulated platforms, which started offshore but have since gradually moved onshore (many of the major operators are based in the United States), are easily accessible on major app stores for download from anywhere in the United States. They provide real money casino-style gambling (including slots, roulette, blackjack, poker, and even sports betting) under the pretence of a “sweepstakes” promotion (albeit one that is continuously run). With over a million gamers headquartered in the United States, this fledgling sector has expanded at an incredible rate. This year, it anticipates at least $4 billion in net income and $11.4 billion in player purchases.

Despite claiming to offer a “sweepstakes” comparable to those occasionally offered by McDonald’s and Publisher’s Clearinghouse, these platforms are completely unrelated to those programs. These platforms consistently provide real money casino-style games of chance, as opposed to a one-time promotion meant to advertise a distinct, stand-alone product. Casino games are the only product available; no other business line is being advertised.

Customers are allegedly given a “free” bonus allotment of “Sweeps Coins,” which allow you to play the same games for the chance to win a prize, after paying for one type of token to participate in the games (“Gold Coins,” which allow you to play the games for no real-world prizes). This “sweepstakes” element is nothing more than a sleight of hand. Generally speaking, the quantity of Sweeps Coins that a buyer receives is equal to the quantity of dollars that they paid for them.

Online sweepstakes casinos have remained unhindered in the US despite their questionable legality. Private class action lawsuits from irate consumers and the occasional cease-and-desist notice from a state regulatory body have been the mainstays of efforts to control these unregulated platforms, which evade state licensing requirements, provide no player protections, and embezzle money from state governments.

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