The Social & Promotional Games Association (SPGA) is providing insights into the budding sweepstakes industry.
The SPGA has provided a fact sheet detailing the operations of social casinos with sweepstakes prizes. The social sweeps provide players with a new gaming experience by adhering to the existing interactive casino model while also offering promotional prizes. The SPGA is providing insights as social sweeps have been a topic of contentious debates.
According to data provided by the SPGA, more than two-thirds of players using sites associated with the group are free-to-play only meaning the majority of social sweep players never spend money. Rather, the data concludes that players engage with social sweeps for fun with the potential to win prizes without needing to make a purchase.
Social sweeps have benefited from deploying Alternative Means of Entry (AMOE) allowing players to engage with offerings and win prizes without having to make a purchase. The AMOE also allows players to continually play the same sweepstakes games.
The SPGA has also determined that its social sweep members are attempting to meet general gaming standards by limiting real-money play to players 18 and older. Its membership is also verifying identities while working within state gaming laws.
Social sweeps have been able to maintain their popularity due to the prevalence of sweepstakes. Businesses, including local and Fortune 500 companies, have been deploying sweepstakes for decades to engage with customers and retain them. Social casinos have benefited from their popularity by providing winning opportunities for players.
Over the last decade, U.S. consumers have spent more than $40 billion playing social casino games making it an established industry for businesses and operators globally.
Despite the potential business opportunities, social sweeps are receiving backlash from gaming leaders and regulators, including Indian Gaming Association Conference Chair Victor Rocha who has hosted discussions on the issue. Social casinos and sweepstakes have drawn concerns from tribes over revenue allocation and regulation.
The concern hasn’t prevented major players in gaming from taking advantage of sweepstakes, including the World Poker Tour (WPT). Earlier this year, the WPT launched a new sweepstakes model poker site.
The WPT plans to host a $5 million freeroll event in Las Vegas in December to celebrate.
