Decentralized, Gamified, Legal: How Sweepstakes Casinos Tap into Web3 and Gaming Trends

Sweepstakes platforms operate under a model that separates gameplay from financial expenditure. They are popular with people who enjoy traditional casino games, like slots and poker, but prefer to play without spending real money.

While these platforms closely resemble traditional online casinos in terms of appearance, they heavily tap into gaming trends in other areas. For example, their design around virtual currency play means they place a stronger emphasis on engagement, progression, and retention rather than high risk and high reward. We will examine the features and gaming trends that sweepstakes casinos have adopted in more detail.

Web3 and the sweepstakes model

Web3 is the next version of the Internet. It’s based on decentralization, personalization, and transparency, and is built using technologies like blockchain. Sweepstakes platforms do not necessarily embrace all aspects of Web3. For example, only a limited number of sweepstakes sites permit only the use of cryptocurrencies, with their associated decentralization, to purchase virtual currency.

However, there are several similarities between Web3 and the sweepstakes model.

Gamification

Sweepstakes platforms and Web3 games use gamification to enhance the user experience. These mechanics include loyalty programs, contests, and points systems.

Earnings potential

Both Web3 games and sweepstakes sites give players the opportunity to win real-world prizes or rewards. They do this by either providing sweepstakes entries or allowing people to participate in Web3 game economies.

Building communities

Sweepstakes platforms and Web3 games create a sense of community. They do so in several ways, including:

• Creating leaderboards.
• Hosting contests and events.
• Providing chat facilities for players to use.
• Awarding achievement badges and bonuses.

To further foster a sense of belonging, both Web3 gaming and the sweepstakes model focus on personalisation. They use machine learning algorithms and artificial intelligence (AI) to analyze user behavior and craft playing experiences accordingly. Doing this enhances the player experience and improves loyalty and retention rates.

Mobile-optimized gaming

In the US, around 54% of adults use a smartphone for gaming. This figure increases to 67% globally. The number of people using mobile devices for gaming continues to grow due to a combination of faster processors, increased RAM, more advanced storage technologies, and improved software and operating systems.

Sweepstakes platforms recognize the importance of this gaming trend and are increasingly investing in mobile-friendly interfaces. As sweepstakes site operators embrace the advancement in mobile technology, they focus on intuitive interactions, faster load times, and appealing graphics.

This focus means that as the multi-billion-dollar industry continues to grow, sweepstakes operators in the US allow users to play games using mobile browsers or dedicated mobile apps. In fact, several operators have chosen to be mobile only, dedicating themselves to this specific market.

Innovation balanced with compliance

The gaming industry balances innovation with compliance by developing a system that enables new features to be introduced in a responsible manner. This system also ensures that games adhere to regularity and ethical standards and guidelines. Methods employed to ensure the success of the system the industry uses include:

• Automated compliance processes.
• AI-focused monitoring.
• The adoption of flexible regularity frameworks.

Loot boxes are a good example of why flexibility is essential in gaming compliance. The rules regarding the use of loot boxes vary between countries and continue to evolve.

Similar regulatory challenges apply to sweepstakes platforms. They are not regulated in the same way as online casinos in the US, but the regulatory landscape is likely to evolve. This makes flexibility paramount. Therefore, sweepstakes platform operators look to the example of the gaming industry to understand how to ensure innovation is balanced with compliance in an evolving legislative and regulatory landscape.

Given the similarities in some areas of sweepstakes platforms and gaming, the sweepstakes industry will likely continue tapping into gaming trends as both industries grow and evolve.