Double currency, real revenue: EvenBet Gaming analyses the business model behind sweepstakes poker

The company’s PR strategist Ekaterina Giganova explains the internal mechanics of sweepstakes in igaming.

Opinion.- Sweepstakes poker used to be a weird cousin of real-money gaming, but it’s all in the past. It has moved past the “legal hack” stage and has become the centre of iGaming conversation. Innovation, regulation, and player demand come together to create this business model that honestly deserves all the attention.

EvenBet Gaming has been closer than most to the action. The company’s legal and product teams are building compliant platforms, testing frameworks, and mapping where operators can actually make money in this fast-maturing space.

In this article, with the help of EvenBet experts, the company’s PR strategist Ekaterina Giganova explains the internal mechanics of sweepstakes in igaming and poker and briefly reviews the current regulation updates.

Sweepstakes in igaming

Back in 2023, industry chatter was filled with predictions that sweepstakes could be the next big thing, a bridge between free-to-play gaming and real-money casinos. EvenBet was one of the earliest tech providers to step into this space, not because it was trendy, but because the numbers demanded attention.

Then, market studies pegged sweepstakes casinos at $3bn in the US alone. That’s not a “niche”; that’s rivaling smaller European regulated markets. And while ARPU is lower than classic casinos, retention is a different story. The double hook of entertainment + prize redemption keeps players cycling back longer, harder, and more often.

Two years later, the sweepstakes’ growth forecast is still quite impressive: a CAGR of 31% and gross revenue at almost $11bn. In short, sweepstakes poker isn’t a novelty anymore. It’s a scalable acquisition tool and a revenue engine sneaking into jurisdictions where real money play is still locked out.

Why sweepstakes took off

Sweepstakes didn’t get lucky, they exploited a gap that real-money iGaming couldn’t touch. States kept the doors shut on online poker, but players still wanted the thrill, and operators still wanted the revenue without breaking laws. Sweepstakes gave them that bridge: casino-style entertainment, legally wrapped, nationally scalable.

What really made it stick? First, Americans already loved poker and slots. Second, laws so restrictive they created a black hole of demand. Third, social games had already taught everyone how to play with fake coins and prize redemptions, so the mechanics didn’t feel foreign. And fourth, a legal framework that let platforms cover the whole country with one license instead of fighting 50 battles. So, we can say the stars basically aligned.

Now the question is: can the magic formula travel? Europe, LatAm, Asia — everywhere people want to play. But regulators there might not have the same handy loopholes. The demand is global, but regulatory tolerance is another story.

US regulation: Still a patchwork

As of Q3 2025, America’s online gaming map is still a quilt of stitched-together markets. Real-money casinos and poker only exist in a handful of states (New Jersey, Pennsylvania, Michigan, Nevada), and even in those states, poker liquidity is strangled by borders. You can play with people inside your own state, but not across lines unless the operator gets a licence for each of them and they all allow interstate traffic. It kills the whole idea of big liquidity.

Most other states stay locked down. Land-based casino lobbies keep fighting online rivals, lawmakers wring their hands about problem gambling, and tax debates kill bill after bill. This is precisely why sweepstakes found their opening: they can legally reach customers nationwide where real-money operators cannot.

Meanwhile, the so-called “big bills” in New York, Illinois, and Indiana, which many in the industry are waiting for, continue to stall, keeping the map uneven. Operators have to play chess state by state, while sweepstakes enjoy one set of rules and a nationwide reach.

Who plays sweepstakes?

The sweepstakes audience is not the same as average high-rollers. The sweepstakes crowd is younger, more casual, and way more social. These players are often crossover users — people who enjoy online entertainment but don’t necessarily want KYC checks or the sting of real-money losses.

Compared to traditional casino users, sweepstakes players skew younger, spend less per session, but log in more often. The simplicity of a free account and instant play with no paperwork or banking hurdles has become one of sweepstakes’ sharpest competitive edges against traditional casinos.

Is this gambling or just pretend?

Here’s the paradox: sweepstakes poker walks, talks, and feels like gambling — but on paper, it isn’t. Bonus coins, redemption flows, AMoE letters in the mail — every detail is designed to plant sweepstakes firmly in the “not gambling” box, even while players chase wins that look and spend exactly like casino payouts.

For players, the distinction barely registers. They see cash going in, they see winnings cashing out, and the rush feels identical to any casino. And regulators know it. Which is why AGA keeps warning that people are confused, that sweepstakes are muddying the waters. Of course, land-based casinos and licensed operators have their own take: sweepstakes isn’t clever innovation, it’s an unlicensed rival skipping license fees, ducking taxes, and stealing business. They call it a loophole, and they call it unfair. And they’re lobbying hard to close the gap.

So is it gambling? Technically no. In the minds of players and the arsenal of critics — absolutely. And that tension may be exactly what drives the next round of scrutiny.

How do sweepstakes work in online poker?

At first glance, sweepstakes poker feels like real-money gaming wearing a disguise. Same tables, same tension, same dopamine hits. It is kind of correct, except those extra steps are what make it legal.

The player journey

It all starts with registration. No heavy KYC walls, no long forms — just a quick sign-up and you’re in. You get Gold Coins upon joining — a sandbox currency for fun games. The business move comes later: players buy Gold Coin bundles and suddenly find Sweeps Coins tossed in on the side. Gold is for casual spins, Sweeps Coins are the ticket to prize-linked play.

Once you’re playing with Sweeps Coins, every win turns into credits you can cash out — PayPal, bank transfer, even gift cards. Hit the minimum, pull your money. Casual fun on one hand, prize-hunting on the other.

What’s happening in the back room

Behind the curtain, the operators are basically running two casinos that never touch. Systems automate the “bonus coin” flow and lock down payouts with ID checks. It looks seamless to players, but under the hood, it’s all compliance firewalls.

Why it’s legal

Here’s the clever bit: players can’t just buy Sweeps Coins. They only ever get them as bonuses. So regulators don’t see “gambling deposits,” they see sweepstakes prizes. And to bulletproof it, there’s AMoE — Alternative Method of Entry. Technically, you can mail in a letter and get Sweeps Coins for free. Nobody does, but it’s the safety valve that makes the whole.

B2B sweepstakes market in poker

The sweepstakes vertical exploded in 2024. Casino game providers rushed to add sweepstakes support to their portfolios. Slots, bingo, keno — they all rushed in. But poker? Not so easy. Few platforms can deliver a true sweepstakes-ready system — which is why EvenBet Gaming is stepping into the spotlight.

It’s not enough to flip on a “play money” switch. The real challenge is in the mechanics: Sweeps Coin wagering engines, audience segmentation tools, and frictionless in-app stores. That’s the real infrastructure sweepstakes poker needs — and the reason most providers fall short. And that’s the gap EvenBet says it’s fixing.

Sweepstakes poker: Market landscape

For years, Global Poker carried the sweepstakes flag. Run out of Australia by Virtual Gaming Worlds, it tapped into the U.S. audience at scale and set the benchmark. $200m in 2024 isn’t a huge headline in global iGaming, but for U.S. poker where every room is starving for liquidity it’s a serious number.

But nothing stays one-sided forever, and VGW’s dominance is ending. ClubWPT, Clubs Poker, Stake.us — they’ve all launched sweepstakes tables. In 2024, sweepstakes poker was the cheap acquisition channel everyone envied. Today, too many operators are chasing the same pool, while ad prices are shooting up and margins are squeezing.

2025: The year regulators came for sweepstakes

What started as a clever loophole in America’s fractured gaming map is now facing serious pushback. Real-money operators, tribal casinos, and state regulators have formed a rare alliance — united by one motive: they view the sweepstakes model as a tax-avoidance scheme.

The financial logic is clear: Gold Coin sales generate huge cash flows, but sweepstakes operators pay nothing close to traditional gambling taxes. Legislators see billions slipping away, and the pressure is boiling over.

The American Gaming Association is leading the charge, and they’re not just talking — their lobbying is shaping laws in real time.

Pre-2025 regulatory landscape:

• Washington: full ban
• Nevada, Utah, Kentucky, South Carolina: severe restrictions
• New York & Florida: prize caps
• 40 states still greenlit for operations

But the tide is shifting. Montana, Connecticut, New York, and New Jersey banned sweepstakes outright. Michigan and Delaware are playing whack-a-mole with cease-and-desist orders. California, Louisiana, Maryland, and Nevada all have proposed or are proposing bills to ban sweepstakes, and Idaho introduced prize restrictions. Even Virtual Gaming Worlds chose to exit New York rather than engage in a lengthy litigation.

Meanwhile, angry players are lawyering up. Claims that “social gaming” is just gambling under a different name have triggered lawsuits in the millions. Settlement amounts range from $1.5m to $12m, with some state fines reaching higher figures. Most settle quietly, but the lack of precedent keeps the entire industry hanging in limbo.

Conclusion

The central question for sweepstakes operators, investors, and technology providers: Will regulators kill this business model?

The blunt answer: not yet. As long as America’s igaming laws remain a patchwork, sweepstakes keep breathing. Bugsy Empire’s Wojtek Stellmach nailed it at SBC Summit Malta: sweepstakes is running the same playbook fantasy sports did a decade ago. And just like fantasy sports before it, sweepstakes fills a market gap that traditional regulation hasn’t addressed.

The opportunity window remains open for new sweepstakes poker projects. EvenBet Gaming offers a customizable poker platform infrastructure to support those ambitions.

The company’s PR strategist Ekaterina Giganova explains the internal mechanics of sweepstakes in igaming. Opinion.- Sweepstakes poker used to be a weird cousin of real-money gaming, but it’s all in…