Do Sweepstakes Casinos Contribute to Problem Gambling in Youth?

Sweepstakes casinos and social gaming are rapidly growing trends in the U.S. gambling industry, but these so-called “free” play models are drawing increasing scrutiny. Despite being marketed as non-monetary games, experts warn they could be contributing to problem gambling in younger generations. According to prominent gambling advocate Brianne Doura-Schawohl, the risks these platforms present to youth are real, and the lure of “fake money” could be as addictive as real-money gambling.

Are Sweepstakes Casinos Fueling Problem Gambling Among Younger Generations?

The popularity of sweepstakes gaming platforms like Chumba Casino, LuckyLand Slots, Pulsz Casino, and Global Poker has skyrocketed, especially among younger users. These platforms operate on a unique model: they use two forms of currency—Gold Coins, which have no redeemable value, and Sweeps Coins, which can be exchanged for real cash prizes. This setup makes sweepstakes casinos accessible to younger players in states where regulated online gambling is restricted, but critics argue that even these “free” games carry substantial risks.

Key Points:

• Social casinos and sweepstakes platforms could be contributing to gambling problems in younger generations, experts warn.
• Brianne Doura-Schawohl suggests that even non-cash virtual currencies can spark addictive behaviors similar to real-money gambling.
• Studies link microtransaction-based gaming habits to gambling addiction, raising concerns about the “free play” model’s impact on youth.

According to Doura-Schawohl, these platforms could lead younger users down a path of gambling addiction. “The brain isn’t going to say, ‘Well, this is inherently safer because it’s not real money,’” she noted, adding that younger users exposed to gambling-style gameplay are more likely to develop issues in adulthood.

Social Casinos and the Rise of Virtual Currency in Gaming

The structure of sweepstakes casinos allows users to engage in gambling-like activities with virtual currencies that mimic real-money wagering. The Council on Compulsive Gambling of New Jersey’s Felicia Grondin recently highlighted this trend, reporting that over half of the state’s calls to its 800-GAMBLER hotline are from people under 34, many of whom report using sweepstakes-style gaming. These platforms are especially popular among young men, who are drawn in by sports betting and gaming options.

Research also suggests a link between gaming addiction and gambling addiction, particularly through microtransaction models. A 2022 study in Addictive Behaviors Reports linked gaming habits driven by in-game purchases and loot boxes to gambling addiction, as both models rely on repetitive behavior for reward. A 2019 Canadian study similarly found that 24.1% of problem gamers were also problem gamblers, indicating a clear crossover.

Legal and Political Backlash Against Sweepstakes Platforms

The unregulated nature of sweepstakes platforms has led to class-action lawsuits and regulatory scrutiny in some states. California tribal groups have voiced concerns, while other states have issued cease-and-desist letters to certain operators. Advocates like Doura-Schawohl argue that the push for regulation is not only justified but necessary.

Doura-Schawohl also foresees increasing political pressure on regulated operators who provide both real-money and free-to-play games. Major platforms like BetRivers, Caesars, and PokerStars have free-play versions of their apps, allowing users to engage without monetary risk but retaining brand familiarity and user engagement. These offerings, she says, act as onboarding tools, building familiarity that can later convert players into real-money customers once they reach legal gambling age.

“Operators offer a suite of products for brand reinforcement and to familiarize younger customers with their games,” Doura-Schawohl explained, suggesting that companies’ free-to-play offerings may soon come under increased scrutiny from lawmakers and the public.

Sweepstakes Games and Sports Betting: A Pathway to Problem Gambling?

Sweepstakes and free-to-play sports betting apps often mimic the real-money experience, but Doura-Schawohl and Grondin emphasize that the “free” aspect doesn’t mitigate risk. Doura-Schawohl notes that these platforms can lead young users toward problem gambling, particularly those exposed to fantasy sports or free-play options that closely resemble real-money betting environments.

“It’s very intentional,” Doura-Schawohl said, pointing to the sports betting industry’s strategic use of fantasy and free-play options to draw in younger users. Cross-promotions between these products and real-money sportsbooks reinforce brand familiarity, often converting casual players into dedicated, real-money gamblers over time. This process builds a strong brand connection, which becomes invaluable as users transition to real-money gaming platforms.

As sweepstakes casinos and free-to-play gambling options become more prevalent, experts like Brianne Doura-Schawohl warn that these platforms may contribute to problem gambling in younger generations. By using virtual currencies that simulate real money, sweepstakes games blur the line between “free play” and traditional gambling, potentially leading younger users down a risky path. As the regulatory environment evolves, the gambling industry may face mounting pressure to reassess these offerings and their long-term impact on youth and problem gambling trends.