Optimove has released a report comparing the performance of real-money online casino platforms and U.S. sweepstakes casinos. The report shows that sweepstakes casinos are seeing much higher growth in player acquisition than online casinos. Sweepstakes player acquisition growth sits at 16% month-over-month compared to 5% for online casinos.
Key Takeaways
- The monthly average for conversion from registration to first deposit for online casinos is 51% compared to 12% for sweepstakes casinos.
- The average monthly deposit for sweepstakes casinos is $263 compared to $878 at online casinos.
While this growth may be worrying for real-money casino sites, several other data points show sweepstakes casinos still lag behind online casinos. Of course, sweepstakes casinos have a wider customer base to draw from, operating in most U.S. states compared to real-money online casinos, which are only permitted in seven U.S. jurisdictions. That explains the higher growth in player acquisition.
However, while sweepstakes casinos are seeing more growth, these platforms see a much lower conversion rate from sign-ups to first deposits. Around 51% of players at online casinos make a first deposit compared to just 12% for sweepstakes casinos. The whole premise of sweepstakes sites is that you can play without depositing, although you can choose to pay for coin bundles.
That is also reinforced in the average monthly deposit information released by Optimove. Sweepstakes casinos receive just $263 in average monthly deposits, while real-money casinos receive $878, 3.3 times more.
One correlation between the two ways to play is the value of players who remain past the first month. With sweepstakes casinos, the average player has 2.6 betting days in the first month compared to 4.3 days for online casinos. However, that gap closes in subsequent months, with 7.4 betting days for sweepstakes compared to 7.5 for real money players.
Sweepstakes casinos in the crosshairs
Sweepstakes casinos are allowed in most U.S. states as these platforms operate under sweepstakes competition laws rather than online casino laws, which govern real money sites. However, there has been a nationwide push to change that, with several U.S. jurisdictions filing legislation to ban sweepstakes casinos.
Ohio lawmakers filed HB 298 earlier this week to prohibit sweepstakes casinos, although that bill also intends to legalize online casinos in the state. Meanwhile, the Assembly Tourism, Gaming and Arts Committee in New Jersey voted to ban sweepstakes casinos at the start of May to protect New Jersey online casinos.
There have been unsuccessful efforts in states like Florida, while Maryland lawmakers haven’t decided on the fate of these platforms. Still, the fact that so many states are considering this kind of legislation shows how sweepstakes casinos are under the national spotlight. Fears about a high player acquisition growth rate may increase the urgency of legislation.
