If you’re a gamer or gambler, it’s almost impossible to escape sweepstakes casinos at the moment. For the past six years, they’ve been everywhere, particularly over in the US, where they’ve created a $6.6 billion market driven by the likes of Stake.us and Crown Coins. It’s the iGaming trend that simply won’t slow down, with more people than ever starting to try these ‘free-to-play’ casinos and chase the prizes on offers.

US Sweepstakes Casino Player Purchases Set to Hit $20.5 Billion This Year

In any sweepstakes casino, players receive the option to play entirely for free using Gold Coins (GCs) or bet Sweeps Coins (SCs) instead and potentially win prizes. It’s possible to stack up plenty of these coins for free, but some players prefer to purchase them directly from the sweepstakes casino stores. And according to Eilers & Krejcik Gaming, player purchases are set to hit a staggering $20.5 billion in 2026, the highest yet.

Looking ahead to 2027, EKG also forecasts that US sweepstakes casino net revenue will grow by 12.9% year on year, reaching approximately $7.5 billion. It’s officially one of the most profitable verticals in the whole of iGaming now that there are so many players involved. High 5 Casino, one of the big-name sweepstakes casinos, even boasts of having over 33 million registered global users.

The reason why players have gone sweepstakes mad to begin with is because unlike regular online casinos, sweepstakes casinos use virtual coins rather than actual money. If you’re lucky enough to collect enough of these virtual Sweeps Coins, the next step is to start redeeming prizes. Cash transfers and gift cards are part of the sweepstakes casino prize pools, while some even offer merchandise, cryptocurrencies, and holidays.

There’s also been an explosion of popular Kick and Twitch streamers using sweepstakes casinos for their streams. Even legendary Canadian rapper Drake has gotten involved, as he’s reportedly paid upwards of $100 million a year as part of the ‘Stake x Drake’ deal. Simply put, sweepstakes casinos are firmly on the iGaming map and won’t be disappearing anytime soon.

There Are Now 400+ Sweepstakes Casinos

Following the rapid rise in popularity for sweepstakes casinos, new operators continue to hit the market every month and it’s now reported there are 400+ casinos to pick from. The most recently updated list of sweepstakes casinos shows a mix of old and new operators, all of which offer sign-up bonuses to get new users onboard. One of the key drivers behind this is the fact that sweepstakes casinos are allowed to operate in 33 US states, whereas online casinos are only able to operate in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia.

How Sweepstakes Casinos Work

Like some, you might be a gamer but have yet to step in a sweepstakes casino before. If you haven’t, the way they function is almost identical to real casinos. The major difference is that you’re betting virtual coins instead of real money, with features like tournaments and leaderboards thrown on top for added entertainment.

If your main goal is to win prizes, you’ll start off with your free Sweeps Coins. You then start betting these coins on the available slot, table, and live dealer games of your choice until you eventually build a collection of SCs big enough to start redeeming prizes. And if you ever run low on SCs, the option is there to purchase more from your sweepstakes casino’s store.

⛁ Imagine you have 3 SCs and start playing the ‘Wanted Dead or a Wild’ slot. After some spinning, you’ve won 100 SCs. If you want to start redeeming prizes, you can then take these coins and exchange them for prizes, such as a $100 cash transfer or two $50 gift cards.

Keep in mind that 1 SC converts to $1. So, if you’ve got 1,500 SCs sitting in your sweepstakes casino account balance, that’s the equivalent of $1,500 worth of prizes. Effectively, sweepstakes casinos use Sweeps Coins as a substitute for dollars.

Recent Bans Haven’t Slowed a Booming Market

Interestingly, sweepstakes casinos have been subject to rising legal controversy over the past few years. When these casinos first exploded back during the 2020 COVID pandemic, they were legal in quite literally every state in the US except Washington. But around a dozen states in the US believe that sweepstakes casinos should fall under the same legal umbrella as regular online casinos, hence why the likes of California and New York have issued bans.

The good news for players is that sweepstakes casinos remain largely accessible throughout most of the US. Accessibility throughout the rest of the world remains variable due to the fact that sweepstakes casinos are primarily targeted towards US player markets, although it is possible to access these casinos from certain parts of Canada, Australia, and other nations.

Over the coming decade, as the US market no doubt continues to expand and reach new audiences, the likelihood is that sweepstakes casinos will start to launch in other countries. It’s already happening on a smaller scale, so don’t be surprised to see plenty more of them arrive soon as they continue to challenge traditional online casinos for market share.