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How do sweepstakes casinos make money?

Publish Date: 11/22/2024

Sweepstakes casinos are broadly legal and popular because they don’t require you to spend any money to win big. That has left some players wondering, however, how exactly sweepstakes casinos make money.

Gambling regulations can be tricky to navigate and are diverse. In the United States for example, each state has its own laws and rules regarding online gambling. To ensure they are completely legal throughout North America, sweepstakes casinos don’t require you to spend any money to play their games. While this is good for gamblers, it does make some wonder how sweepstakes casinos make their money.

What does the business model of a sweepstakes casino make money?

Sweepstakes casinos all have their own version of in-game currency that go by different names from place to place. But one unifying factor is that at every casino, this currency is completely free. This allows players to enjoy each game without paying any real money at all. However, it’s also not worth anything.

Sweepstakes Coins, on the other hand, have an actual value. These are earned in a variety of ways that often do require you to make purchases. Thus, these digital coins often constitute the core business model of a sweepstakes casino.

sweepstakes Casino coins

Sweepstake casinos largely make money through the sale of in-game currency. While it’s true that this currency can also earned for free through login bonuses and by completing various challenges, there is almost always an option to purchase the currency directly. When you purchase the in-game currency, Sweepstakes Coins are often given as a bonus. Basically, you can play the games for free, but you can earn money if you make purchases, like buying currency bundles.

Another way sweepstakes casinos make money is through advertisements. Sweepstakes casinos often have advertisements, commercials, surveys, and promotions throughout their site from third-party partners. Sometimes you’ll even have to watch an advertisement before playing a free game. Other times there’s just typical display banners and buttons leading to partner sites on the page.

It’s also common for most sweepstakes casinos to have affiliate programs, meaning that they pay commissions to content creators and other players if they promote the casino on their website, social media, videos, podcasts, and elsewhere through other types of content. Partnered sites pay each other to send traffic back and forth, sometimes with upfront costs, and at other times by certain percentages of the revenues brought in from a new user's spending habits.

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