Sweepstakes casinos have their own vocabulary, and SC casino terminology can trip up even experienced online gamblers who are encountering the dual-currency model for the first time. Gold Coins, Sweeps Coins, AMoE, playthrough, redemption thresholds — these terms carry specific meanings that don’t always map to their traditional casino equivalents. This glossary defines every significant term you’ll encounter at SC casinos, organized alphabetically for easy reference.
A–G: AMoE to Gold Coins
ACH (Automated Clearing House): The US electronic bank transfer network used by most SC casinos for both Gold Coin purchases and Sweeps Coin redemptions. ACH transfers typically take 3–5 business days to process after platform approval.
AMoE (Alternative Method of Entry): A free entry mechanism required by US sweepstakes law. At SC casinos, AMoE usually takes the form of a mail-in request — a handwritten letter or postcard sent to the operator’s designated address, which results in free Sweeps Coins credited to the player’s account. AMoE ensures the “no purchase necessary” requirement is met, maintaining the legal distinction between sweepstakes and gambling.
Bankroll: The total amount of Sweeps Coins or Gold Coins available in a player’s account for wagering. In the sweepstakes context, SC bankroll management is particularly important because Gold Coin purchases are not tax-deductible as gambling losses.
Bonus SC: Sweeps Coins received as a promotional add-on with a Gold Coin purchase or through free entry methods. Bonus SC is subject to playthrough requirements before redemption.
CPA (Cost Per Acquisition): The marketing cost to acquire one new player. In the sweepstakes industry, CPA runs $50–$100 per user through traditional channels — a figure that drives operators to offer referral programs and generous welcome bonuses as lower-cost alternatives.
Consideration: In gambling law, the element of payment or wager. Traditional gambling requires three elements: consideration, chance, and prize. Sweepstakes casinos argue they remove consideration through the AMoE free entry method, making their model legally distinct from gambling.
Daily Login Bonus: A reward claimed by logging into an SC casino once per day. Typically includes Gold Coins and a small amount of Sweeps Coins, with escalating rewards for consecutive daily logins (streaks).
Dual-Currency Model: The core operating structure of sweepstakes casinos. Players interact with two currencies — Gold Coins (purchased, non-redeemable) and Sweeps Coins (free bonus, redeemable for cash). The dual-currency model is the legal mechanism that allows platforms to operate outside gambling regulations. This model powers an industry that reached $10 billion in gross purchases in 2024.
GC (Gold Coins): The non-redeemable virtual currency at sweepstakes casinos. Gold Coins are purchased directly with real money and used for entertainment play. They have no cash value and cannot be converted to Sweeps Coins or redeemed for prizes.
Geofencing: Technology that restricts access to an SC casino based on the player’s physical location. Used to block players in states where the platform doesn’t operate or where sweepstakes casinos have been banned.
H–P: House Edge to Promotional Casino
House Edge: The mathematical advantage the operator holds on every wager. At the game level, house edge is the inverse of RTP — a 96% RTP slot has a 4% house edge. At the operator level, sweepstakes casino house edges range from 28–32% on gross wagering, reflecting the compound effect of player reinvestment.
iGaming: Regulated online gambling licensed by US state gaming commissions. As of 2026, iGaming is legal in seven states: New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, Delaware, and Rhode Island. iGaming differs from sweepstakes casinos in licensing requirements, tax obligations, and consumer protections.
KYC (Know Your Customer): The identity verification process required before a player can redeem Sweeps Coins for cash. Typically involves submitting a government-issued photo ID, proof of address, and sometimes a selfie. Most platforms process KYC within 24–72 hours.
Minimum Redemption: The lowest SC balance required to submit a cash-out request. Ranges from 10 SC (Fortune Coins) to 100 SC (Chumba Casino, WOW Vegas) across major platforms.
Net Revenue: The amount retained by operators after prize payouts. The sweepstakes industry generated approximately $3.4 billion in net revenue in 2024, from total player spending of $8.5–$10.6 billion.
No Purchase Necessary: The legal requirement that participation in a sweepstakes must be available without payment. This phrase, ubiquitous in SC casino terms of service, is the legal foundation that distinguishes sweepstakes from gambling. It’s enforced through AMoE and other free entry methods.
OBBBA (One Big Beautiful Bill Act): Federal legislation signed July 4, 2025, that changed gambling tax rules. Key provisions: the deduction for gambling losses is now capped at 90% (previously 100%), and the 1099-MISC reporting threshold for sweepstakes winnings was raised from $600 to $2,000 starting in 2026.
Operator-Level Payout: The aggregate percentage of player wagers returned as prizes across all games and all players on a platform. For sweepstakes casinos, this figure typically falls between 68% and 72% — distinct from game-level RTP, which measures individual game mathematics.
Playthrough (Wagering Requirement): The amount of SC that must be wagered before the balance becomes eligible for redemption. The industry standard is 1x — meaning you must bet the SC amount once through eligible games. Slot games typically contribute 100% toward playthrough; table games contribute at reduced rates (10–20%).
Progressive Jackpot: A prize pool that increases incrementally with each wager placed on a connected game across one or more SC casinos. Progressive jackpots at sweepstakes platforms can reach significant SC values, though they’re less common than at regulated online casinos.
Promotional Casino: A term sometimes used to describe sweepstakes casinos, emphasizing their legal classification as promotional sweepstakes rather than gambling operations.
R–Z: Redemption to Wagering Requirement
Redemption: The process of converting Sweeps Coins into real cash prizes. Requires completed KYC verification, satisfied playthrough requirements, and a balance at or above the platform’s minimum redemption threshold. Standard conversion rate: 1 SC = $1.
RNG (Random Number Generator): The algorithm that determines the outcome of every game at an SC casino. Third-party studios (NetEnt, Pragmatic Play) use RNG engines certified by independent testing labs. Proprietary games at platforms like Chumba Casino use in-house RNG without published third-party certification.
RTP (Return to Player): The theoretical percentage of wagered money a game returns to players over the long run. A 96% RTP slot returns $96 for every $100 wagered over millions of spins. SC casino slot RTPs from major providers range from 94% to 99%.
SC (Sweeps Coins): The redeemable virtual currency at sweepstakes casinos. SC cannot be purchased directly — it’s received as a bonus with Gold Coin purchases or through free entry methods. After meeting playthrough requirements, SC can be redeemed for cash at a 1:1 ratio ($1 per SC).
Self-Exclusion: A voluntary tool that allows players to block their own access to a platform for a defined period. Available at some SC casinos (WOW Vegas, Chumba) but not mandated by any regulator. Unlike regulated casino self-exclusion, SC casino self-exclusion applies only to the individual platform, not across the industry.
SGLA (Social Gaming Leadership Alliance): The trade association representing sweepstakes casino operators. The SGLA advocates for a regulatory framework that would bring SC casinos under state oversight with licensing, taxation, and responsible gaming mandates.
Skrill: An e-wallet payment service used by several SC casinos for both purchases and redemptions. Functions as an intermediary between the casino and the player’s bank account.
Sweepstakes Casino: An online gaming platform operating under the dual-currency model where players purchase Gold Coins and receive Sweeps Coins as a free bonus. SC are redeemable for real cash prizes. The model is classified as a promotional sweepstakes rather than gambling under the operators’ legal interpretation, though this classification is increasingly contested by regulators and legislators.
Tax Reporting Threshold: The redemption amount that triggers mandatory IRS reporting by the platform. Under the 2026 OBBBA rules, platforms must issue a 1099-MISC when total annual redemptions from a single player exceed $2,000 (previously $600). All SC winnings are taxable regardless of the reporting threshold.
VGW Group: The Melbourne-based parent company of Chumba Casino, Global Poker, and LuckyLand Slots. The largest sweepstakes casino operator globally, with $6.13 billion in reported annual revenue and a US market share that declined from over 90% in 2020 to approximately 50% in 2024.
Volatility: A measure of how frequently and how large a game’s payouts are. Low-volatility games pay small amounts often; high-volatility games pay large amounts rarely. Volatility affects the player’s short-term experience but doesn’t change the game’s long-run RTP.
VPN (Virtual Private Network): Software that masks a user’s real IP address and geographic location. Using a VPN to access SC casinos from banned states is a terms-of-service violation that results in immediate account suspension and balance forfeiture at virtually every platform.
Wagering Requirement: See Playthrough. The terms are used interchangeably across the SC casino terminology landscape. Both refer to the amount of SC that must be bet before redemption is permitted.
Whale: Industry term for a high-spending player. In the sweepstakes context, approximately 12% of users make any purchase at all — and within that group, a small subset of heavy spenders generates a disproportionate share of operator revenue. The whale-driven economics of the sweepstakes model closely mirror those of mobile free-to-play gaming.