Sweepstakes games are widely available in the United States and raise the risk of compulsive gambling among young individuals.
Only a few states in the United States now provide legal online casino gambling. In contrast, while legal iGaming has yet to gain traction, sweepstakes are available in most jurisdictions and provide enjoyment similar to online casino games.
Despite the legal ambiguity surrounding sweepstakes, policymakers have yet to take substantial efforts to regulate them. Still, sweepstakes pose concerns, notably about problem gambling and their effects on young adults.
Sweepstakes and Online Casinos differ mostly in terms of virtual currency.
According to one specialist, young adults may develop gambling-related problems even if they play sweepstakes games with virtual currency. Brianne Doura-Schawohl, a well-known consultant, responsible gaming advocate, and the founder and CEO of Doura-Schawohl Consulting LLC, shared her thoughts in a recent interview with Casino Reports.
The expert highlighted the parallels between sweepstakes and online casino games. She highlighted that when it comes to gambling addiction, the brain does not distinguish between “real” and “fake” money. According to Doura-Schawohl, the only difference between online casino games with real money and sweepstakes is the currency.
“The brain isn’t going to say, ‘Well this is inherently safer because it’s not real money.'”
Brianne Doura-Schawohl, the founder and CEO of Doura-Schawohl Consulting LLC
Licensed online gambling providers employ real money for every wager, whether it’s poker, roulette, or slots.
Operators, on the other hand, frequently provide the same casino games in virtual currency. Typically, such currency is free, but if a player wishes to extend their gameplay, they must purchase virtual currency with real money. Some operators provide two types of virtual currencies, with the second allowing players to win real-money prizes.
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Sweepstakes Increase the Risk of Addiction
Doura-Schawohl cited the expansion of legal sports betting as the primary reason why young males are considered the most likely to develop problem gambling. She discussed the betting operators’ DFS service, which appeals to many young males and can lead to real-money sports betting through cross-selling opportunities.
Regardless of the impact of betting, Doura-Schawohl believes that sweepstakes applications pose a higher risk of gambling-related harm because they are widely available throughout the country. “The risk and possibility to get addicted to these products remains very real. “Just because it is fake money does not make it any better,” she explained.
The latest study follows a previous conference in which Tribal officials condemned sweepstakes operators, emphasizing the hazards they pose to the commercial and tribal gaming verticals.
Prior to the conference, in September, a group of sweepstakes operators formed the Social and Promotional Gaming Association (SPGA) to promote ethical sweepstakes gaming and enhance knowledge of game compliance in various jurisdictions. The Association, formed by 11 companies, will play an important role in the future of sweepstakes.
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