MyPrize Launches International Online Casino, Sweepstakes Casino In U.S.

MyPrize, which bills itself as the “first ever multiplayer online casino,” has announced the launch of a new online casino platform that caters to international markets, a move complemented by the introduction of a sweepstakes platform specifically designed for U.S. users.

The international MyPrize platform operates on a model that allows users, through its Bet Together solution, to engage in casino-style games using in-game USD. This currency can then be converted into various cryptocurrencies, providing a fluid transition between gaming and digital asset management. Slots, blackjack, roulette, and even scratch cards and crash games are available.

MyPrize also enables users to compete with or against some popular gaming streamers connected with the platform. The roster includes streamers Solace, Atomic, and AsianAndy. It’s also associated with 100 Thieves, a well-known brand in the eSports space.

For U.S. clientele, the platform offers a sweepstakes system. Instead of real-money wagers, users will acquire “play chips” that can be used to enter sweepstakes for a chance to win real prizes, including cryptocurrency. This allows U.S. users to enjoy casino games and potentially win prizes while adhering to legal regulations.

In recent years, sweepstakes casinos have proliferated across the U.S., providing an alternative to traditional online gambling. Players in states with restrictive gambling laws have flocked to these sites, enticed by the opportunity to enjoy casino-style games.

The platforms operate under the premise that they are promotional ventures, offering free sweeps coins upon registration (typically with real-money deposits). The operators indicate that the games are based on an element of skill rather than pure chance, a distinction that is crucial for legal operation in many jurisdictions.

Investors have their eyes on MyPrize

Financially, MyPrize is off to a promising start, securing $13 million in funding through two rounds. These rounds were spearheaded by Dragonfly and Boxcars Ventures, both of which are prominent players in the venture capital space. Additional participants include Arrington Capital and Blockchain.com CEO Peter Smith.

The sweepstakes casino ecosystem is witnessing a period of robust growth. This is further evidenced by a recent announcement from Gaming Innovation Group Inc. (GiG), a B2B gaming technology provider, regarding the launch of its own sweepstakes solution, SweepX, for online casinos.

The emergence of SweepX, which is now available through a partnership with Primero Games, signifies a growing trend in the market, where companies are seeking to capitalize on the intersection of gaming and sweepstakes with the allure of cryptocurrency rewards. This trend reflects a broader shift in consumer preferences toward platforms that offer more than just gaming — such as offering a chance to be a part of the digital currency movement.

Sweepstakes casinos gaining ground

The global sweepstakes casino market is experiencing a significant growth spurt. This burgeoning sector offers a unique form of entertainment that mimics the thrill of real money iGaming, particularly in areas where such activities are restricted or not explicitly regulated.

The market grew revenue at 89% per annum between 2019 and 2022. By the end of 2022, it was worth $3.1 billion, according to Eilers & Krejcik Gaming. By way of comparison, the U.S. legal sports betting market was worth $7.5 billion that year.

In tandem, the quality of games offered by sweepstakes casinos has seen a marked improvement, with noted developers like Pragmatic Play, Playtech, and NetEnt producing sweepstakes versions of popular slot titles. These games boast high-quality graphics, immersive soundtracks, and engaging gameplay.

Social media platforms have become fertile ground for promoting these casinos, leveraging the power of community and connectivity to attract a wider audience.

MyPrize stands at the forefront of the shift, offering a dual-faceted platform that caters to both traditional online casino enthusiasts and those looking to delve into the world of digital currencies through gaming. The company’s withdrawal system, which allows the conversion of in-game USD to crypto, positions it as a bridge between two rapidly evolving sectors: online gaming and financial technology.

A wave of controversy

Sweepstakes casinos have also become a focal point of controversy in the U.S., where the legality of their operations hinges on their operational model. The purchase of their virtual currencies has led to several lawsuits challenging the legality of these platforms.

One notable case is the class-action lawsuit against VGW Malta Ltd, which operates Chumba Casino and LuckyLand Slots. Plaintiffs claimed that the company’s virtual casino games violated Kentucky gambling laws, leading to an $11.75 million settlement without admission of wrongdoing by VGW Malta.

Another lawsuit filed in Georgia federal court alleges that VGW Holdings Limited and its subsidiaries operate internet gambling websites in violation of Georgia law, with the plaintiff seeking monetary relief for losses incurred.

Questions have arisen over whether these platforms will face scrutiny similar to that experienced by fantasy sports operators. While federal law permits gambling, states have the authority to regulate or restrict it. Most states are highly restrictive on online casinos but more lenient toward sweepstakes promotions, leading to a patchwork of regulations that sweepstakes casinos must navigate.