Sweepstakes Increase Gambling Risks Among Younger People, Expert

Only several states across the United States currently offer legal online casino gambling. In contrast, while legal iGaming is yet to pick up speed, sweepstakes are available in most states, offering entertainment that is quite similar to online casino games.

Despite the legal ambiguity when it comes to sweepstakes, lawmakers are yet to take meaningful actions to regulate them. Still, sweepstakes do raise concerns, particularly when it comes to problem gambling and its impact on young adults.

Virtual Currency Is the Main Difference Between Sweepstakes and Online Casino

Now, an expert suggests that young adults may develop gambling-related problems even if they play sweepstakes games with virtual currency. This is the take of Brianne Doura-Schawohl, a recognizable consultant, responsible gambling advocate, founder and CEO of Doura-Schawohl Consulting LLC, who was recently interviewed by Casino Reports.

The expert pointed to the similarities of sweepstakes and online casino games. She revealed that a person’s brain doesn’t make a difference between “real” and “fake money” when it comes to gambling addiction. As explained by 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, founder and CEO of Doura-Schawohl Consulting LLC

In the case of licensed online gambling operators, real money is used for every wager, regardless if the game is poker, roulette or slots.

On the other hand, sweepstakes operators often offer the same type of casino games using virtual currency. Usually, such currency is free but when a player wants to prolong their play, they need to purchase virtual currency with real money. Some sweepstakes operators offer two different types of virtual currencies with the second one granting players a chance to win real money prizes.

Sweepstakes Carry a Risk of Addiction

Doura-Schawohl pointed to the expansion of legal sports betting, recognizing this process as the main reason why young men are seen as the most likely group to develop problem gambling. She spoke about the betting operators’ DFS offering that engages with many young men, who thanks to cross-selling opportunities can also turn to real-money wagering on sports.

Despite the impact of betting, according to Doura-Schawohl, sweepstakes apps do carry a greater risk of gambling-related harm, considering their availability across the country. “The risk and ability to become addicted to these products is still very real. Just because it’s fake money doesn’t make it better,” she explained.

The latest report comes after a recent meeting that saw Tribal leaders condemn sweepstakes, pointing to the dangers such operators bring to the commercial and Tribal gaming vertical.

Before the meeting, back in September, a range of sweepstakes operators joined forces to form a body that will promote responsible sweepstakes gaming and raise awareness of the games’ compliance in different jurisdictions, the Social and Promotional Gaming Association (SPGA). A total of 11 companies helped form the Association that will play a key role for the future of sweepstakes.