Before prediction markets dominated the conversation, sweepstakes were one of the industry’s biggest talking points. And while the headlines may have shifted, the sector itself has continued to gather momentum, writes Lauren Harrison.
Today, sweepstakes have evolved into something much bigger than an alternative gaming model. Gaining global traction, they have introduced a new generation of players and game studios into the industry – proving that things can be done differently.
And the statistics reflect this.
In 2025, for example, the global sweepstakes market is estimated to generate US$7.3 billion (£5.5bn) in revenue and it is expected to reach US$12.3 billion by 2035 (£9.25bn), representing an annual growth rate of 5.8 percent.
One of the key suppliers helping operators transition into the sweepstakes space is multi-award-winning games aggregator Alea Gaming.
Meeting in person to discuss the latest trends, pressures and pitfalls of operating in this sector, iGF’s Head of Content, Curtis Roach, and Alea’s Founder, Alexandre Tomic, sat down to explore how sweepstakes players and games content are changing the game.
Curtis began by asking:
Tell us about your new jackpot product and what it means for your customers?
“We soft launched our new jackpot product at ICE Barcelona in January. The interest was instant, especially with our sweepstakes customers.
“The product is less of a jackpot and works more like a side bet, which makes it profitable.
“When the player wants to play a €1 bet, they can opt to add a five or 10 percent or 20 percent side bet on top of it. The side bet will go to the jackpot and the operator in the back office can define what house edge they’re taking on the jackpot.
“But we’re already getting requests from operators to let them add a seed fund to the jackpot and use it as a marketing tool. That’s exactly why we needed the soft launch.
“We also still have some testing to do to ensure the jackpot cannot be abused. This product is already more reliable than traditional third-party jackpots, because we retain control over transactions and can respond to any threats and block transactions.
“We’re still not quite ready for the full launch, but a lot of customers are already asking for the product, so it’s a really exciting development.”
For operators used to legacy titles carrying 30-40 percent of revenue for years, the sweepstakes model demands constant new content just to keep pace. What does that do to a typical operator’s content budget and supplier relationships compared to traditional casinos?
“There are positives and negatives.
“Many traditional game creators and aggregators have already left the market–Pragmatic, Axo Gaming and Booming Games, to name a few–, which means, unlike the traditional sector, where established suppliers dominate, the sweepstakes sector is driven by new studios. That makes it harder for operators to keep up, stay fresh and integrate the latest content.
“Sweepstakes players aren’t looking for legacy games. They want new games and tend to stick to low-volatility titles. It’s a completely different demographic.
“Like real-money players, they spend 80 percent of their time playing from a mobile device. But unlike traditional players, most of their spending is also done via mobile because real-money players tend to place larger bets on desktop.
“It’s for these reasons that the sweeps sector is so interesting and that working with a game aggregator, which can take care of the content pressures for operators and has the market expertise, is essential.”
With player rankings shifting within weeks of a new release, how are operators supposed to plan promotions, bonusing and CRM campaigns around a lobby that won’t sit still?
“The challenge for operators is that they are already dealing with content fatigue. On our platform alone, we see 200 to 300 new games launched every month.
“If you include all the smaller studios we haven’t integrated, the real number is probably closer to 800 new games per month. The lobby has become incredibly crowded.
“The direct consequence of that is that games now only stay in the new game category for around 24-hours. In the past, that window was closer to two-weeks.
“That is why many studios now release on Thursday or Friday. They want prime placement going into the weekend, benefit from Friday night, Saturday and Sunday traffic and then they are usually moved out on Monday.
“If a game launches on Monday, it can disappear from the top section by Tuesday morning.
“Operators have already adapted, expanding their casino/game management teams and building ranking algorithms to evaluate how successful a new game is. The key metric is what we call stickiness: How many spins a player makes in a session, how much is wagered, the GGR generated and similar engagement signals.
“First, you launch the game in a prime position. Then, depending on the stickiness measured by the early data, operators can decide whether to keep the game high in the rankings or let it drop down the lobby. This information also lets them determine whether it’s worth running a promotion linked to a certain game.”
If the “sweepstakes player” doesn’t behave like a traditional casino player, what’s the single biggest assumption operators are carrying over from traditional iGaming that’s actively costing them retention or revenue right now?
“The biggest assumption operators make is presuming these two players are alike. They are not.
“Sweepstakes players fall into a segment we call ‘entertainers’. They are not looking for a big win or a life-changing sum and they are not high-volatility players. These players seek out low-volatility games and if they do bet, the stakes are low.
“We don’t have in-depth first-hand consumer profiles. As an aggregator, we don’t have access to this. Instead, we rely on what our partners tell us, which is that sweepstakes players are younger, mobile-first and here to play.
“Essentially, this is the video game generation entering casino gaming and sweepstakes are the result.”
Editor’s Note:
Many operators still view sweepstakes as the next incremental innovation to existing iGaming models. But in reality they represent a whole new ball game and a fundamental shift, particularly when it comes to content.
Not only are the players a totally new segment with different intentions and playing styles–many of which run counter to traditional casino trends by prioritising entertainment over financial gain–but the game studios, content cycles and lobby management pressures are different too, making this arguably one of the fastest-moving and most exciting sectors in gaming.
As Alexandre explains throughout this interview, success in sweepstakes isn’t about applying traditional casino thinking to a new model. It’s about understanding that the rules have changed and that the game and supplier ecosystem is constantly evolving.
For him, that makes working with an experienced aggregator increasingly valuable for operators launching in, or trying to keep pace with, the sweepstakes sector.
