Sweepstakes Casinos: The US Legal Loophole
The **Sweepstakes Casino** model circumvents US online gambling bans by utilizing a **dual-currency system** (Gold Coins for play, Sweeps Coins for prizes) and the **"No Purchase Necessary"** legal defense. By offering an **Alternative Method of Entry (AMOE)**—usually via mail—operators argue they a...
Summary
The **Sweepstakes Casino** model circumvents US online gambling bans by utilizing a **dual-currency system** (Gold Coins for play, Sweeps Coins for prizes) and the **"No Purchase Necessary"** legal defense. By offering an **Alternative Method of Entry (AMOE)**—usually via mail—operators argue they are running legal sweepstakes rather than gambling, as the element of "consideration" (payment) is technically removed. Pioneered online by **VGW (Chumba Casino)** and recently adapted to sports betting by **Fliff**, this sector generates billions in revenue. However, it faces existential threats from state regulators (e.g., Michigan's recent crackdown) and class-action lawsuits arguing the model is a sham designed to disguise illegal gambling.
References & Further Reading
- 1. VGW FY2023 Financial Performance View Source →
Related Topics
More in LegislationThe Macolin Convention
The **Macolin Convention (2014)** is the first legally binding international treaty aimed at combating the manipulation of sports competitions. It shifts the paradigm of match-fixing from a sporting rule violation to a transnational crime. **Key Components:** * **National Platforms:** Mandates t...
The Federal Wire Act of 1961
Explore the history and significance of The Federal Wire Act of 1961 in the context of sports betting.
PASPA (Professional and Amateur Sports Protection Act of 1992)
The **Professional and Amateur Sports Protection Act (PASPA)** of 1992 was a US federal law that effectively banned sports betting nationwide, granting exemptions only to Nevada, Oregon, Delaware, and Montana. Intended to protect the integrity of sports, PASPA prohibited states from "authorizing" or...