Sweepstakes in Business

Sweepstakes have been around for decades. But what are they, and how do they help to leverage power in business? There are substantial claims that sweepstakes are considered an impactful tool in familiarizing customers with your brand and raising sales. 

Apart from major brands that apply the sweepstakes strategy in marketing their business, casinos are also widely known to use them. John Slots offer more information on sweepstakes in casinos. 

According to John Slots, “sweepstakes casinos are a great way for players across the US to enjoy some fun online casino games, legally and safely.” So, it’s not only used as a business strategy in marketing to crank up profits. 

Sweepstakes Defined

Sweepstakes is a type of promotion that is based purely on luck or randomness. Participants voluntarily enter into the competition pool, where they stand a chance to win various prizes. Entrance is usually free for all. However, if the company wants to persuade customers to purchase goods for entry, then another possible free method must be available for entry into the sweepstakes.

How Does it Work

Firstly, there are specific rules to follow in sweepstakes to avoid potential fraudulence. The Federal Trade Commission helps regulate these laws in the United States. There are 10 rules that you have to follow to have a legitimate sweepstake offer. 

Sweepstake Rules

  1. A clause should stipulate a “no-purchase-necessary.” 
  2. A fixed start and end date should be given. 
  3. The eligibility requirements must be precise.
  4. The information on the process for entry must be precise.  
  5. Limitations on the number of entrants should be stated. 
  6. The odds of winning should be specified. 
  7. Set the prizes and estimated values of the prizes.
  8. Provide detailed information on the process of choosing winners and contacting them. 
  9. State any restrictions on the winnings. 
  10. Provide particulars of the sponsor’s name and address. 

Participating in Sweepstakes

The overall process of participation is simple to enter and generally basic. 

  • Check if the sweepstake is legitimate. 
  • Check guidelines to confirm that you qualify regarding location and demographics.
  • Fill out the necessary form with basic information such as name, address, and phone number.
  • Submit an entry to the stipulated location.
  • Wait for the date and time of announcement of winners. 

Benefits of Sweepstakes

When companies create and manage sweepstakes efficiently, the outcome can be threefold:

  • The consumer gets excited about the possibility of winning an extravagant prize and subsequently shares this with family and friends.
  • The promotion may encourage the consumer to visit the promotional store to shop, possibly resulting in a purchase. 
  • There is also a new lead that you can add to a firm’s client database to send other marketing messages in the future. 

Sweepstakes used as marketing promotions can:

  • Build awareness
  • Generate leads
  • Develop loyal customers
  • Incentivize new stakeholders to get to know your brand
  • Provide insights into the marketplace
  • Increases exposure to a business 
  • Reward existing clientele drawing attention to specific products

Sweepstakes generally attract more entries if the prizes are large and grand, irrespective of odds being low or not. Anecdotally, if the entry process is more engaging, the more entrants there are into the promotion. 

Online Sweepstakes

There are 3.81 billion people that are actively using social media worldwide. These statistics support why online sweepstakes are so successful. Engagement with online consumers proves to be a vital goal in social media marketing. 

Studies show that online sweepstakes-based marketing is affluent in acquiring the attention of, and promoting engagement with, consumers. This is especially true when compared to other types of social media marketing. 

The main advantage of online promotions is that the internet is an enormous marketing playground. There are no limitations as long as the deals are legitimate. The only requirement is to have an exact target market. This focused market may result in a considerable number of potential followers.

Online sweepstakes can promote a company’s website across various social media platforms, bringing attention to the brand, and an increased online presence. Sweepstakes online can have a cascading effect as it gets shared through colleagues’ extensive network, including family and friends.

Guide to Create An Online Sweepstake

  • Set contest goals that may include: increasing a social following, getting new subscribers, getting new patrons, increasing engagement on social media, increasing blog engagement, and getting feedback about the product or services offered. 
  • Select a prize for the contest considering the budget but still offering a desirable product. 
  • Set the rules for participating by using simple language and preferably with bullet points for easy readability. 
  • Choose appropriate entry options that are related to the goals of your campaign.
  • Ascertain the start and end of the promotion that can be typically between two to four weeks. 
  • Set up the giveaway using relevant online social media tools. The tools or applications will allow you to name the campaign and add other important information.
  • Promote the sweepstakes in a variety of ways like outreach, broadcasting emails, and social shouts. 
  • When the sweepstake ends, pick a random person from the entries. The tool that you used to set up the giveaway should be able to choose a winner randomly.  Notify the winners with a congratulation note and the process of claiming their prize.  
  • Develop a follow-up protocol for participants, as it shows that you acknowledge their efforts in engaging with the brand. 
  • Use a tool/model to track the sweepstake campaign’s performance to determine if goals and objectives have been met. 

Sweepstakes in Casinos

Online casinos’ popularity has increased over the years. Sweepstakes-based casinos use a virtual currency called ‘gold coins’ bought in packages. The gold coins are used to play various casino games. However, there is no actual value in this money, and you can’t cash it out. 

Sweepstakes are offered as part of the gold coin package. Players earn and utilize ‘sweep coins’ to play in various online casino games for prizes. The player can withdraw bonuses in real cash.

In general, the player can redeem sweep coins for real cash and play for real money. Patrons can’t directly purchase sweep coins either. 


Sweepstakes can be a robust tool to use to promote and grow a business. Depending on the prize, it can be relatively low-cost marketing when executed efficiently. A plan that has a roadmap with predetermined objectives and goals is a recipe for success in giveaways. 

Sweepstake prizes are also won at online casinos. They also offer sweep coins that can be used to win prizes, especially in places such as in the individual states in the USA that do not allow gambling for real money.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.