Sweepstakes Casinos Growth Outstripping Online Casinos

New research shows sweepstakes casinos are acquiring new customers at three times the rate of online casinos. 

by - Monday, June 2nd, 2025 1:11

Tips for Joining a New Sweepstakes Casino

New research shows sweepstakes casinos are acquiring new customers at three times the rate of online casinos.

A report by Optimove showed sweepstakes casinos are expanding their player base at a rate of 16% per month, far exceeding the 5% growth of online casinos.

The Analysis of US Sweepstakes vs. Real-Money Gaming report was based on an analysis of 67,000 players on real-money online casinos and sweepstakes platforms from July to December last year.

Online casino players make more deposits

Although the report found that sweepstakes operators are growing their player base at a much faster rate, the value of each customer is lower than that of real-money casino players.

On average, only 12% of sweepstakes players convert to first-time depositors, compared to 51% for real-money online casinos. Deposits are also larger, with real-money players averaging $878 per month compared to $263 for sweepstakes players.

Sweepstakes platforms allow players to play without making any deposits, and the Social and Promotional Gaming Association (SPGA) argue that the free-to-play possibility should ensure the platforms remain legal.

A spokesperson for the SPGA commented, “Millions of American adults enjoy the safe and engaging games provided by social sweeps sites. These players love that no purchase is necessary to play or win prizes.”

Initial engagement patterns are also higher at real money casinos, with the average new player playing 4.3 days a month compared to 2.6 days for new sweepstakes players.

However, this later averages to 7.4 days for sweepstakes players, just less than the 7.5 days for real-money casino players. This suggests that although initial retention of new sweeps players is slower, in the long run, the players may engage at roughly the same rate.

Sweeps under legal scrutiny

Montana became the first US state to officially ban sweepstakes with new legislation coming into force in October this year. Other states have also been debating bills to prohibit dual-currency casino platforms.

New York has been moving forward with legislation, which has led to the withdrawal of major sweepstakes casino operators, including VGW, who exited the state last week.

Bills in Louisiana, Connecticut, Ohio, and Nevada are also making progress, but previous efforts in Arkansas, Florida, Mississippi, and Maryland failed.

Sweepstakes a unique alternative to legal casinos

In the report, Optimove concluded by stating that sweepstakes platforms “offer a scalable, low-friction entry channel for online gaming operators.”

The company went on to write, “For iGaming marketers and operators, understanding the dynamics of U.S. sweepstakes gaming is no longer optional, it’s strategic.”

“With real-money gaming still restricted in most U.S. states, sweepstakes offer a unique, fast-growing alternative to acquire and engage players legally.”

Adam Roarty

Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.