If you’re a seasoned gambler or an iGaming enthusiast, you’ve probably heard of social casinos and sweepstakes casinos. Both are forms of online gambling platforms, but there’s a few key differences between the two. With social casinos, players use virtual currencies, often called ‘Gold Coins’, which are free-play tokens that allow players to have fun without spending a cent. These coins cannot be withdrawn or exchanged for prizes.
Sweepstakes casinos have all that but take it a notch further, as players can also receive ‘Sweep Coins’ which can be redeemed for cash or gift cards without wagering real money. However, one important thing to note is that you cannot directly buy Sweep Coins. These are earned through performing certain activities, like playing games, unlocking bonuses, or winning them.
You might be wondering, if players can’t purchase Sweep Coins, how do sweepstakes casinos make money? While gold coins are fully redeemable for free, allowing customers to play as long as they like with no purchase necessary, sweepstakes operators do offer the ability to purchase gold coin packages, which can include free Sweep Coins as an added bonus for players to benefit from. From that concept alone, the sweepstakes vertical is expected to amount to approximately $8.5bn in 2024.
With this understanding of how sweepstakes casinos operate, let’s explore the opportunities operators can take advantage of to maximize their potential in this growing market.
Leverage Unique Game Offerings
One common challenge for operators in the sweepstakes space is differentiating their offerings. Since this is a relatively new vertical, the market is ripe for innovation. Operators should focus on developing unique, engaging games that stand out from the competition. By offering games with enticing themes, high-quality graphics, and great mechanics, operators can attract and retain players.
Collaborating with renowned game developers or incorporating exclusive features can further strengthen their market position. This also allows operators to experiment with new games on a “trial basis” if you will. That way, if the games are a success on their social casinos, they can incorporate them in their real online casinos one day.
Understand and Communicate Value Propositions
To succeed in the sweepstakes area, operators should clearly communicate the value of their platform to both players and affiliates. This involves explaining how players can earn and use Sweep Coins and the benefits of participating in their sweepstakes. Educating their users and helping them understand the platform’s unique selling points ensures they can fully benefit from the offerings.
For affiliates, providing them clear and detailed information about the platform is important. Affiliates rely on accurate details to promote the operator effectively and help potential users navigate the features.
Simplify the User Experience
Affiliates and players alike appreciate simplicity, meaning operators should strive to make their platforms as user-friendly as possible. This includes having a straightforward sign-up process and intuitive game navigation, along with clear instructions on how to swap between playing with gold coins or Sweep Coins to earn and redeem prizes. Reducing complexity enhances the overall user experience and encourages greater engagement and retention. Simplifying the user journey also helps affiliates effectively communicate the benefits of the platform to their audiences.
Build Strong Affiliate Relationships
As the sweepstakes casino vertical continues to gain traction, the affiliate side of the business has certainly taken notice. In 2024, more and more affiliates are focusing on this vertical as demand for sweepstakes content continues to grow for U.S customers in states where online gambling is not yet regulated. This was reinforced by Catena Media CEO Manual Stan who stated in their Q2 earnings call that “sweepstakes are the fastest-growing vertical for us and we expect it to keep growing”.
Affiliates play a crucial role in driving traffic and acquiring new players. Establishing and maintaining strong relationships with affiliates is a key opportunity to launch a successful user-acquisition campaign. Operators should provide affiliates with comprehensive resources, such as marketing materials, tracking tools, and performance data. Regular communication and support help affiliates effectively promote the platform and achieve mutual goals. Addressing any challenges affiliates face, such as unclear terminology or insufficient information, is essential for building a successful partnership.
Future Outlook
There is a lot of momentum in the sweepstakes space with no clear signs of things slowing down anytime soon. With that being said, an important consideration for entrants in the space will be educating customers that are still unfamiliar with the sweepstakes model on the product. This not only includes highlighting what makes an operator unique from other sweepstakes casino brands, but also how their product differs from traditional online casinos and other real money gaming sites.
This is where teaming up with affiliates will continue to play an important role in connecting brands with new customers. Affiliates remain focused on supporting players with the answers to the questions they’re looking for in their gaming journey and providing brands with visibility and engaging content highlighting their USPs to the ever-growing audience of sweepstakes lovers.
