The US sports betting market has expanded substantially in recent years. Today, it’s a multibillion-dollar industry. However, sports betting is not legal in all 50 states, so some sports fans cannot place wagers.
Sweepstakes sportsbooks are filling this void by operating differently from traditional sportsbooks. Put simply, users do not bet with real cash, so these sites are not subject to sports betting regulations. We will examine the rise of sweepstakes sportsbooks in more detail, explaining how they work and why the future of sweepstakes sportsbooks and casinos seems positive, subject to potential regulation.
The expansion of sports betting in the US
Since the 2018 Supreme Court decision enabling states to decide whether to permit sports betting, the industry has grown rapidly. In 2023, the US sports betting market was estimated at $13.76 billion. This figure is expected to increase at a CAGR of 10.5% from 2024 to 2030.
There are several reasons for this growth, including digitalization, technological advancements, and the greater use of smartphones. In addition, a large number of states now have a regulated industry, leading to lucrative opportunities for operators. As of 2025, 38 states permit sports betting.
How sweepstakes sportsbooks work
Even though sports betting is now regulated in most states, it’s still illegal in several parts of the country. In many of these states, and across the country, sweepstakes sportsbooks provide an alternative to traditional sports betting.
At these sportsbooks, users do not use real cash to bet. They use free Gold Coins or Sweepstakes Coins to do so. Users can also purchase Gold Coin packages, which often include free Sweepstakes Coins. These virtual currencies are used to place bets on sports and have no intrinsic value.
If users win Sweepstakes Coins while betting, they can redeem them as real cash or sometimes gift cards. Offering users the opportunity to bet using virtual currency without spending real money means these sites are not subject to traditional sports betting regulations.
Sweepstakes sportsbooks and casinos are experiencing significant growth
Sweepstakes sportsbooks can operate in most states, although they are specifically prohibited in Idaho and Washington, and do not operate in Michigan or Nevada due to restrictions and previous legal action. Each site may also have a list of other restricted states.
As sweepstakes sportsbooks operate in more states than traditional sites, they have gained significant attention. In 2024, they attracted estimated revenue figures of $8 billion when combined with sweepstakes casinos. The casino sites operate in the same way as sweepstakes sportsbooks, but they offer casino games like slots, table games, and live dealer games.
The historic revenue increases experienced by sweepstakes sportsbooks and casinos in the last 12-18 months are likely to continue as they attract significant numbers of users. The primary threat to the sweepstakes industry’s growth is the potential for increased regulation. If more states impose restrictions, the industry may not flourish as expected.
However, the industry is healthy and expanding right now. Sweepstakes sportsbooks and casinos provide betting products and games from top developers like Pragmatic Play, Hacksaw Gaming, and BGaming.
Magnus Boberg, Co-founder and Managing Director of JustMedia Ltd., recently stated;
“There’s a real buzz about the sweepstakes sportsbook and casino industry. Our brand, “JustGamblers,” is a prominent provider of advice and reviews concerning traditional and sweepstakes sites, and we’re seeing high levels of interest in major players in the industry that continue to shape and evolve the sweepstakes landscape. Users are definitely embracing sweepstakes sites, and operators have every reason to be positive.”
Others share this view. Based on current indications, industry experts predict a positive future for sweepstakes sportsbooks and casinos outside of potential legislative changes.