Starting a Sweepstakes Business in 2022

7 July 2022

sweepstakes casino

The increasing popularity of sweepstakes casinos signifies that more types of casinos are needed to meet gamblers’ demands.

Many prospective investors who are contemplating going into this casino sector have little or no knowledge of how to start a sweepstakes casino and run it successfully.

This article explains the basic requirements on how to start a sweepstakes casino business and the factor that may determine its success or otherwise.

What’s a Sweepstakes Casino?

Unlike a regular casino where players gamble with real money, virtual currency is the wager medium in sweepstake casinos, although players are allowed to swap virtual for real money.

Currently, over 45 Canadian and USA states have legalized sweepstakes casinos, giving them wide coverage and acceptance among the passionate online gambling community.

The growing exposure and acceptance have opened the door for prospective casino business investors to consider it as one of the best options in the gambling industry.

Requirements to Start a Sweepstakes Casino

If you want to open a sweepstakes casino in 2022, here are some of the requirements you must meet:

1. Website Domain and Hosting

First, you need a website domain, an “online address” for your sweepstakes casino business. That’s the best way to distinguish yourself from your competitors and make it easier for your target audience to see you online.

Prospective players can easily search for your business address on search engines and visit your site for a taste of what you have to offer once they know your website URL.

Hosting is equally important. Get a reputable hosting company for your website. The hosting service provider will handle some areas of your business such as ensuring your website’s smooth running, providing a server, and backing your data and players’ information on their server.

BlueHost, Namecheap, Hostgator are three of the most popular and reliable hosting services in the business. Compare their services and choose whichever checks your boxes.

2. Sweepstakes Gaming Software

Sweepstakes software is the most important element of your casino business. The software hosts the variety of games on your website and gives you easy control over them.

For the best result when you start a sweepstakes casino, the foundational gaming software must be bug-free, reliable, and must not cave in under heavy loads. Besides that, it must be able to support millions of active players monthly while handling the multiple games on your website effortlessly.

While the industry is saturated with gaming software developers, you’ll get the best for your business if you patronize experienced developers who have been in the business for years.

The right software provider for your sweepstakes casino business should meet these criteria:

  • The provider must understand the sweepstakes business and associated legal rules and regulations in relevant countries.
  • Check the list of games the provider offers. You need a variety of games to keep your players. The provider must offer scores of the best games to boost patronage and player retention.
  • Check the quality of their games. Patronize providers that offer high-quality games with the right features such as rewards.
  • What about their customer support? Is it functional or not? What about their responsiveness? How fast does it respond to issues or queries? Ask these questions to understand what you’ll be up against when you run into a hitch or need some clarifications.

3. Sweepstakes Games

Running a successful sweepstakes casino requires giving your players what they want: entertaining games that offer the best winning chances and prizes.

Reputed games developers have an avalanche of games with fair contests and incentives for sweepstakes casino owners to choose from.

Rewarding players with attractive bonuses will cost you money. You must ensure that your selected games justify the rewards and offer something in return as well if you want to open sweepstakes casino in 2022.

Hence, it is important to do some research and choose the right game developers who understand the business and develop games that will keep you in business.

What Will make Your Casino Tick?

If you desire to open a sweepstakes casino in 2022, here are some important features you must incorporate into your business to stand out from the crowd and attract the right audience:

1. Games

Gamblers visit online gaming sites to do one thing: feed their passion by playing their favourite entertaining or rewarding game.

Casino business owners who know their clients offer players a wide range of games to satisfy their growing needs for more games or meet their specific gaming needs.

While drawing your business plan on how to start sweepstakes casino business, consider the importance of numerous game options for your players. The more game options at their disposal to choose from, the higher the probability of patronizing your business, and vice versa.

2. Bonuses

If you want to start a sweepstakes casino, consider bonuses too. Attractive bonuses also draw gamblers to a gaming site as bees draw to honey. Besides a great list of the best games, bonuses are another factor that may determine a player’s interest or disinterest in a gaming site.

Offering attractive incentives is one of the best ways to give your business great publicity. Gamers appreciate gaming sites that reward them for their efforts.

Besides attracting more gamblers, you’ll be in a good position to retain existing customers if there’s something to look forward to at random intervals or for completing a game or other tasks.

3. Supported Deposit method

While sweepstakes casinos don’t run on fiat currencies, that doesn’t imply that such currencies are completely irrelevant to their platforms.

Players need real money to buy virtual currencies supported by sweepstakes gambling sites. Hence, when creating your business around the sweepstakes concept, consider your players’ diverse backgrounds and incorporate payment solutions that will address their needs.

Don’t stick to cryptocurrency-supporting payment methods only. Offer a wide range of options to allow players to choose the most appropriate option for their needs and locations. That’s a good way to start on the right foot if you desire to open a sweepstakes casino in 2022.

4. Platform Functionality

Platform functionality is a core factor to consider when creating a sweepstakes casino. Regardless of the features you incorporate into your online gambling business, if your prospective users struggle to access or use your platform, you’ll be leaving players and money on the table.

5. Customer care

You will deal with gamblers with diverse challenges that may require your casino’s input and assistance when you start sweepstakes casino.

This may include answering their questions or offering solutions to their problems. Your business needs a functional customer support team to handle these queries and SOS request from players.

Without a great and professional support team, players may be stuck, and without a way out, they will abandon your business and go for your competitor with a functional customer care service.

6. Security

Social gambling sites are vulnerable to hacks and attacks if the right security measures aren’t put in place to secure users’ data. To ensure your business’ security and allay prospective users’ apprehension, incorporate encryption software into your platform to offer a protective layer.

This may include ensuring that all users implement the 2-factor authentication security measure to minimize their chances of losing their data and money to fraudsters. This smart move will add another layer of security to the users’ data.

7. Terms & Conditions

Sweepstakes regulatory laws require investors to have a clear Terms and Conditions that guide users’ activities on the platform.

The Terms and Conditions should cover the following:

  • Winning Disclaimer: From the onset, let users understand that everyone has equal chances and nothing puts anyone at an advantage over others.

It may be helpful to include disclaimers such as “No Purchase is necessary” and “Many will enter, few will win” to give a very clear idea of what’s at stake for each gambler. They can’t find a shortcut to success or gain an undue advantage over other players.

  • Entry Instructions: Be clear with the entry requirements. Give specific instructions on entry methods or alternatives.
  • Eligibility Requirements: Specify the eligibility requirements too. Let prospective users have a clear picture of the eligibility requirements for using the platform. Are there geographic, age, or any other restriction? Spell this out.
  • Winning Odds: The winning odd is expressed as a ratio of the number of winners (X) to the number of entrants (Y), i.e. X/Y. However, when dealing with some statutes governing mail-based lotteries such as Enforcement Act and Deceptive Mail Prevention, you are required to give the odds estimate.
  • Selection Details: How is the random drawing conducted? Your audience needs to know whether your platform does the selection itself or that part of the business is outsourced to a third-party vendor.
  • Important Dates and Deadlines: The entry period should be clearly stated too. Clearly state the start and end date for everyone to see. The selection date for the winner should also be well defined and stated in the Terms and Conditions.
  • Prize Details: What prizes do you offer players? Describe them in detail, including their retail values. Remove ambiguity from your descriptions to give players a clear idea of what they stand to gain from playing at your casino.

Besides these general rules, some states have put in place special regulatory laws for sweepstakes. In many states, operators are required to have an up-to-date record of their activities and transactions. They must also keep a winners’ list for easy reference.

In some states such as New York and Florida, the sponsor is expected to do the following:

  • Post bond for the available prize.
  • Post the winners’ list.
  • Register the promotion with the state where it operates.

That aside, the promoter is expected to prepare an abbreviated list of the rules guiding its advertising campaign and copy. The list should include the sweepstakes’ basic material elements. It should also include the provision for an alternative mode of entry (AMOE).

The promoter should pay attention to the “Equal Footing” rule too. This rule stipulates that all the participants using the alternative mode of entry must be given equal winning chances as those who either purchase a product or pay an entry fee without favoritism.

They must also take note of the promotion restrictions in some states where operators are forbidden from using some promotional phrases such as “Enter to Win” or “You are a Winner” to ensure that participants’ hopes aren’t raised too high. Your marketing campaigns must indicate that entrants only have a shot at winning.

Another important factor you should consider when you want to start a sweepstakes casino is social media promotion and restrictions. If social media is your means of conducting a sweepstakes, you must comply with the rules and regulations of each chosen platform.

You should also issue a disclaimer absolving the social media platform from any liability concerning your business. The disclaimer should state categorically that the SM platform isn’t in any way connected with endorsing, sponsoring, or promotion.

Don’t overlook a platform’s standing rules on the permitted entry methods and others such as certain accounts to follow or commenting on posts. Complying with these rules and restrictions will go a long way in boosting your business’ performance on social media platforms where most of your target audience is active.


Opening a sweepstakes gaming business in the U.S. means complying with the lottery and gambling laws that exist in each of the 50 states.

The general rule in these states stipulates that there are three elements which transform a promotion into a gambling act. These are chance, prize, and consideration. To run a sweepstakes business which complies with the law, one of these elements must be eliminated. When it comes to sweepstakes, the element which is usually eliminated is consideration – meaning a direct monetary requirement.

The ”no purchase to enter or win” rules require using alternate methods of entry (AMOEs). Just like a drinks company can offer a giveaway with prizes revealed under the bottle caps, operators can use AMOEs to offer players the chance to enter for free by mail, internet access or “going on the internet” to enter sweepstakes.

Another method would be to create a contest where the winners are chosen using a judging system, instead of being randomly selected – this would eliminate the element of chance. Skill-testing questions can be used to take advantage of this method.

You can open a sweepstakes casino in 2022 if you understand the basic requirements and regulations that will increase your chances of running a successful online gambling platform.

7 July 2022

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