Online casino regulation is always a big talking point for industry professionals. While the traditional sector trades with much larger profits amid tighter regulation, sweepstakes are operating in an area outside of the traditional parameters of casino gaming.
The US market has always been the primary target for the entire iGaming industry. In fact, the relaxing of casino gaming and sports betting regulations since 2018 explains why the industry has been experiencing such incredible growth.
A Supreme Court ruling devolved powers and allowed each state to decide whether or not to permit sports betting within state lines. Obviously, this is slightly different from online casino gaming, but this let the genie out of the bottle from a regulatory perspective.
Traditional casinos cater to a real-money gambling environment. Given that they handle such large bets and sums of cash, they must adhere to a much stricter set of rules. Sweepstakes casinos, on the other hand, do not fall into this regulatory remit, and from both a general US standpoint and an individual state perspective, they have a lot more breathing room.
The reasons why sweepstakes casinos stand out
In truth, there aren’t many factors that make sweepstakes much different from traditional casinos. They stand out because their main payment options are on-site currencies, tokens and sweepstakes cash. There are several definitions, but they all represent tokens you can only use on a particular site. Since they do not use real money, this puts them in a highly advantageous position compared to the traditional market.
By channeling into the market and allowing casino gamers an option to play without worrying about the losses they may incur in traditional casinos, they have proved to be a hit with a raft of gamers who prefer the mechanics of a game and a site rather than having to worry about the usual issues.
They still maintain the look and feel of a standard casino, and use the same types of promotions and marketing. For instance, you can find no deposit bonuses at Crown Casino – and while their on-site tokens might be slightly different from the traditional currency you’re used to dealing with, the promotions and marketing follow an identical framework that you will be used to seeing if you have used a traditional casino bonus before.
A different regulatory environment
Regulation is an essential discussion in tech, entertainment and finance. Artificial intelligence (AI) is one of the most significant talking points in technology, as it permeates every level of gaming, education and business sales. Therefore, regulation is essential. While casino gaming is further ahead of this curve, and has 20 years to put effective regulation in place, that doesn’t mean that there aren’t nuances and new elements to be aware of.
However, despite their similarities, conventional online casinos and sweepstakes operate from two different regulatory standpoints. Sweepstakes are legal and permitted in all US states except Washington, and some specific pieces of regulation that impact gamers in Idaho.
Aside from that, they have free rein to operate wherever they wish. This contrasts with traditional providers who have been met with a stonewall from regulators and legislators in various states, including some of the biggest markets such as California and Texas.
Obviously, these states, which have vast corporations and multibillion-dollar economies, are not as reliant on the tax base that some smaller states wish to cultivate. Recently, California’s economy overtook Japan as the 4th largest on the planet. So, they are certainly not in a rush to legalize traditional gambling, but this is music to the ears for sweepstakes casino operators that are eyeing up the Californian market.
Other markets where online gambling companies are not allowed to operate, including Utah and Alaska, are crucial to know about as citizens of any of these states. The same applies to sweepstakes, too, despite there being far fewer.
Why is regulation necessary?
Not only is it crucial that a casino platform ensures its licensing and regulation are in line with the latest laws and legislation, it’s something that gamers need to be aware of, too. Technically, if you are playing at a sweepstakes casino platform in Washington state, you are in breach of state-wide legislation.
It’s also important that sweepstakes platforms are regulated and operate according to gaming laws. Suppose a casino gamer has issues with the site or wants to complain about the service they have received – in that case, the appropriate licensing ensures that independent third-party regulators and auditors can hold an operator to account.
Without this, it’s a free-for-all, and this is what we see in the traditional casino sector, with platforms licensed to an obscure country or island, and minimal regulatory visibility.
Conclusion
As long as you don’t reside in Washington state or Idaho, you don’t need to worry about the regulatory landscape of sweepstakes. It’s always a good idea to check if this has changed, but given that these platforms do not have a facility to gamble with real money, many conventional gambling laws and regulations do not apply.
Keeping up to date with legislation doesn’t just ensure your gaming remains above board; it helps you gauge the market’s direction. In addition, you get a good idea of the regulatory requirements to keep an eye on, especially if you often play at online casinos, regardless of whether they are traditional casinos or sweepstakes platforms.
