What are sweepstakes companies?
Behind all your favorite sweepstakes casino brands – be it Pulsz, Stake.us, Fortune Coins, or WOW Vegas – there is a company running the show. Indeed, it’s often the case that these businesses operate two or more customer-facing sweepstakes casino brands, with different sites intended to bring something new to their target audiences.
Understanding how online sweepstakes companies operate is a crucial step in grasping the legality, safety, and reputation of individual brands. That’s why our experts encourage you to research the origins and company history of any new sweepstakes casinos you encounter, as these insights can reveal plenty about the quality and integrity of a particular outfit.
When did sweepstakes companies in the USA first emerge?
The first online sweepstakes casinos to hit the US market arrived in the early 2010s. This was perhaps in response to the imposition of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which effectively brought an end to real-money online gambling in the USA.
With the arrival of UIGEA, online entertainment companies sought alternative ways to continue their web-gaming operations. This ultimately resulted in the birth of the dual-currency sweepstakes gaming model, which allowed for casino-style online play within UIGEA’s legal framework.
What is the dual-currency sweepstakes gaming model and who came up with it?
The dual-currency sweepstakes gaming model is an operational system that facilitates authentic casino-style play within the legal parameters of UIGEA. The concept was devised by Virtual Gaming Worlds (VGW), one of the biggest and best sweepstakes companies in the USA.
In VGW’s dual-currency system, a player receives two virtual coins, chiefly “Gold Coins” and “Sweeps Coins”. These tokens are 100% free to collect, but each serves a different purpose, as set out in our table below:
| Gold Coins (GC) |
In the dual-currency sweepstakes gaming system, Gold Coins are used purely for recreational play. These tokens have no real-world value and cannot be exchanged for prizes; however, it is possible to purchase more of them should you wish (although this is 100% optional). |
| Sweeps Coins (SC) |
Sweeps Coins, meanwhile, can be used to participate in free sweepstakes for the opportunity to claim real prizes. It’s not possible to purchase SC, but you can collect more for free by redeeming bonuses or by purchasing Gold Coins, which often include an allocation of bonus Sweeps Coins. |
The success of the dual-currency sweepstakes gaming model relies on sweepstakes companies adhering to a strict no-purchase-necessary remit. All games, prizes, bonuses, and features offered by a sweepstakes casino must be available with no mandatory purchases, payments, or deposits required. Otherwise, a brand could easily fall foul of the Federal Trade Commission (FTC), which has the power to impose restrictions or outright bans on any sweepstakes companies that do not operate within the framework of the UIGEA.
How do sweepstakes companies comply with US anti-gambling laws?
Naturally, a priority point for many of our new readers is the legality of online sweepstakes companies. As well as the games, bonuses, and features that are available, many newcomers are eager to learn more about the legal status of sweepstakes casinos and how they’re able to comply with the USA’s strict anti-gambling legislation.
For sweepstakes companies to operate legitimately, compliance with current legal standards is absolutely critical. There are three main facets to regulatory compliance governing sweepstakes casinos within the US, including:
- No purchase necessary:
Sweepstakes casinos must provide 100% free methods of obtaining Sweeps Coins, with no mandatory purchases required to participate in sweepstakes games. Their platforms must be free to use at the point of entry, with no payment gateways or deposits required to access games, claim coins, or redeem free bonuses.
- Truthful advertising:
Sweepstakes companies may only advertise their games and services in very specific ways. For instance, if they mention bonuses in an ad, they must clarify the key terms and conditions. Note, too, that the ways in which sweepstakes companies are allowed to advertise can vary on a state-by-state basis, with some jurisdictions imposing different rules and restrictions than others.
- Verification and age restriction:
Before a player can purchase Gold Coins or exchange Sweeps Coins for prizes at sweepstakes casinos, they must verify their age and date of birth as part of a know your customer (KYC) verification process. Age restriction is a major facet of the legal framework of sweepstakes companies, although it’s worth pointing out that minimum age requirements do vary from state to state (fluctuating between 18 and 21 depending on the territory).
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How competitive is sweepstakes gaming in the USA?
The USA’s sweepstakes gaming industry is fiercely competitive, with dozens of brands vying for the attention of prospective new customers. To put into perspective just how competitive the USA’s sweepstakes gaming industry is, here’s a look at some of the headline statistics which demonstrate the scale and potential of the online iGaming field:
- Approximately 120 sweepstakes casinos are operating in the USA
- Sweepstakes companies achieved an average market growth of 75% from 2019 to 2024
- By the end of 2025, sweepstakes casino user penetration is expected to pass 20% of the US population – that’s around 95 million players
What are the key trends in the sweepstakes gaming industry in 2025?
Given the ever-changing and ever-growing nature of the industry, sweepstakes companies are constantly looking to reinvigorate their offerings to drive user engagement and retain their stake in the country’s rapidly proliferating sweepstakes market. Of course, much of this is trend-led, with companies moving in a similar direction to meet user demand in key areas. These include:
The convenience of smartphone play marries perfectly with the casual nature of many sweepstakes casino games. Hence, we’re seeing many brands moving to a mobile-first setup, with dedicated iOS and Android apps gradually moving from “nice to have” to “must have” status.
Gamification is central to how sweepstakes companies drive and retain user engagement. That’s why leaderboards, contests, VIP reward programs, and other level-based features have proliferated across leading sweepstakes casino brands.
Trust remains the most prevalent consideration in a customer’s decision to register with a sweepstakes casino brand or not. As such, brands are constantly looking to improve the security provisions they offer, as well as expediting the necessary verification checks required for compliance purposes.
✨ Bespoke settings and personalisation
From personalized bonuses to bespoke in-game settings, we’ve seen an increase in bespoke features and customization from big-name sweepstakes companies, so you can expect this trend to continue.
💳 E-wallets and cryptocurrencies
Anonymity, privacy, and security are priority points for many players, which could explain the growth in demand for sweepstakes casinos supporting e-wallets and cryptocurrencies.
Introducing four of the biggest sweepstakes companies in the USA
While there are many sweepstakes companies in operation throughout the States, some are more prominent and influential than others. Here, we’ll examine three such operators in turn, giving you an overview of their business models, offerings, and how they operate.
1. Virtual Gaming Worlds (VGW)
Virtual Gaming Worlds, or VGW for short, is an interactive entertainment company founded in 2010. The company is widely credited with pioneering the dual-currency sweepstakes gaming model that we discussed earlier, a system which it first rolled out on one of its most popular sweepstakes casino brands, Chumba Casino, back in 2012.
VGW was established by Australian tech entrepreneur Laurence Escalante and remains headquartered in Perth, Australia. The company’s portfolio of sweepstakes brands includes several big names, most prominently Chumba Casino (2012), Global Poker (2016), and LuckyLand Slots (2019).
Learn more in our complete
VGW review.
2. Yellow Social Interactive (YSI)
Yellow Social Interactive is a great example of a sweepstakes company that very few people will have ever heard of, despite its brands being household names within the sweepstakes gaming industry. Established in 2019, YSI is responsible for the launch of popular sweepstakes casinos like Pulsz Casino and Pulsz Bingo, which have together attracted millions of regular players across the USA.
While YSI remains a working entity within the sweepstakes gaming industry, in March 2021, the company was acquired by Ollieblox, a San Francisco-based investment firm that specializes in interactive entertainment. Following this takeover, YSI was able to achieve significant growth thanks to partnerships with renowned software developers like NetEnt, Novomatic, and Pragmatic Play.
Learn more in our complete
YSI review.
3. Playtika
Playtika is known less as a pure sweepstakes company and more as a developer of mobile games. Even so, the company’s most popular titles will be familiar to millions of regular sweepstakes casino users, with titles like
Slotomania, Bingo Blitz, House of Fun, Poker Heat,
and
Board Kings
being ubiquitous on the majority of sweepstakes casino brands in the USA.
Part of the reason behind Playtika’s continued success is that it was one of the first companies to forge partnerships with mobile-first sweepstakes gaming sites, bringing its free-play games to an ever-expanding pool of new players. In 2011, the company was acquired by renowned US gaming conglomerate, Caesars Entertainment Corporation, before being sold to a Chinese consortium in 2016. As of 2024, the company has expanded to become one of the key players in the social casino space, with a reported net revenue of $2.5 billion.
Learn more in our complete
Playtika review.
4. Rush Street Interactive
Where US social casino companies are concerned, Rush Street Interactive is one of the biggest players in the industry. Based in Chicago, Illinois and founded in 2012, the company has a proven track record in bringing casino, sports, and social casino gaming brands to market – including big names like BetRivers, PlaySugarHouse, and RushBet.
The long-standing success of RSI is often attributed to the company’s innovation and willingness to expand. Even as recently as January 2025, the company entered a new partnership with software developer RubyPlay to bring a new sweepstakes casino outfit to the US market. All the while, it continues to manage and operate both social casinos and real-money casinos in the USA, along with a handful of legitimate sports betting retailers in selected states.
Learn more in our complete Rush Street Interactive review.
The future looks bright for the USA’s leading sweepstakes companies
Faced with a seemingly ever-expanding pool of customers, sweepstakes companies in the US are well-positioned to achieve sustained growth in the months and years to come. Demand for sweepstakes casino games shows no sign of letting up, so it’s safe to assume that a growing number of brands will soon be vying for your attention.
Of course, if you’re struggling to identify the suitable sweepstakes gaming outfit for your needs, you can rely on our experts here at the PromoGuy. With years of combined experience in testing and reviewing the latest sweepstakes companies, we can help you sort the wheat from the chaff, guiding you towards the sweepstakes casino that suits you.
Browse the banners around this page to get started or visit our full sweepstakes gaming hub for a list of our top brands of the moment.
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Sweepstakes companies FAQ
🏷️ Are sweepstakes companies legal in the USA?
Yes, there are many legal sweepstakes companies in the USA. However, brands must adhere to a strict legal framework to guarantee full compliance.
⭐ What are the best-known sweepstakes companies?
There are dozens of well-established sweepstakes casino companies in the USA, with some of the best-known being Virtual Gaming Worlds and Yellow Social Interactive.
💡 How do sweepstakes companies work?
Sweepstakes companies operate on what’s called a dual-currency sweepstakes gaming model. This is when a customer receives two free virtual currencies that facilitate different game modes, with Gold Coins used for recreational play and Sweeps Coins for participating in promotional sweepstakes.
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