Online sweepstakes casinos are attracting new users at a far greater pace than traditional real-money gaming (RMG) platforms, according to a new report from Optimove. The research, based on activity from more than 67,000 players between July and December 2024, reveals that sweepstakes operators are expanding their user base three times faster than RMG casinos.
Optimove’s Analysis of US Sweepstakes vs. Real-Money Gaming report highlights a 16% month-over-month increase in new players for sweepstakes platforms during that period, compared to just 5% for real-money online casinos. This growth is attributed in part to sweepstakes’ broader reach—while RMG sites are currently limited to only seven U.S. states, sweepstakes platforms operate in more than 36.
However, the growth advantage doesn’t translate as effectively when it comes to monetization. While sign-ups are strong, sweepstakes struggle with turning new users into paying participants. The report found a stark difference in first-time deposit conversions: only 12% of sweepstakes users went on to make a purchase, compared to 51% of those joining real-money casinos.
Player Behavior and Spending Vary Sharply Between Models
Even when sweepstakes users do spend money, their activity tends to be more sporadic and on a smaller scale than that of RMG players. First-month betting activity averaged just 2.6 days for sweepstakes users, trailing the 4.3-day average seen at RMG casinos. While the gap narrows over time—with sweepstakes users eventually reaching 7.4 betting days per month compared to 7.5 for RMG—it suggests a slower initial engagement curve.
Additionally, spending habits reveal a substantial disparity. Average monthly deposits among sweepstakes participants came in at $263, well below the $878 average for RMG users. One-time spenders are also significantly more common on sweepstakes platforms.
Optimove emphasized the difficulty of drawing direct comparisons between these two models. The sweepstakes structure allows users to play with free in-game currency and does not always involve a traditional deposit. Instead, users purchase virtual items or tokens—creating a legal and operational distinction that operators claim is a sale rather than a gambling deposit.
Optimove: Sweepstakes a Strategic Opportunity Despite Limitations
Despite limitations in conversion and revenue per player, Optimove sees long-term potential in sweepstakes as a supplementary channel for operators navigating restrictive iGaming regulations in the U.S.
“For iGaming marketers and operators, understanding the dynamics of U.S. sweepstakes gaming is no longer optional, it’s strategic,” the report stated. It added that these platforms “offer a scalable, low-friction entry channel for online gaming operators.”
However, the report cautioned that user retention remains a challenge, noting that “the novelty fades quickly,” requiring operators to continuously innovate and roll out engaging offers to maintain interest.
Regulatory Environment for Sweepstakes Under Pressure
While growth continues, the legality of sweepstakes remains a contentious issue across the U.S. Montana has already enacted a full ban on online sweepstakes casinos, and other states including Louisiana and Ohio are close to passing similar legislation. Lawmakers in Connecticut and Nevada are also advancing bills that could tighten oversight, depending on how sweepstakes are defined.
Source:
“Optimove: Sweepstakes gaining new players much faster than online casinos” sbcamericas.com, May 30, 2025
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