Sweepstakes Casinos and Social Gaming

The **Sweepstakes and Social Gaming** sector represents a legal workaround to traditional gambling prohibitions, utilizing a **Dual-Currency System** to separate payment from wagering. Originating from the "Freemium" model of social games like *Zynga Poker*, the industry evolved via operators like **Virtual Gaming Worlds (VGW)** and **Fliff** (sports). **Key Mechanics:** * **Gold Coins (GC):** Purchasable, no monetary value (Social Play). * **Sweeps Coins (SC):** Non-purchasable, given as a "bonus" with GC, redeemable for cash prizes. * **AMOE (Alternative Method of Entry):** The legal requirement to offer a free way to enter (usually via mail), ensuring the activity is a "sweepstakes" and not a lottery. This structure allows operation in 40+ US states, bypassing the strict licensing and tax regimes of regulated sports betting. However, recent regulatory crackdowns in **Michigan** and **Washington** suggest the "Grey Market" loophole may be closing as states seek to protect regulated tax revenue.