SWEEPSTAKES
Sweepstakes: tension between virtual gaming and regulated gambling DR. ANDREAS WOERLEIN & DR. MATTHIAS SPITZ CARRY OUT A COMPARATIVE LEGAL ANALYSIS WITH A SPECIAL FOCUS ON GERMAN GAMBLING LAW
T he sweepstakes casino model is one of the most remarkable innovations in the digital entertainment sector in recent years. It combines casino-like gaming experiences with a sophisticated dual-currency system that offers users a genuine and practical option to participate for free, thereby structurally distinguishing itself from traditional gambling. This conceptual approach has attracted millions of users worldwide and demonstrates that digital entertainment and responsible gaming need not be mutually exclusive. Nevertheless, it would be misguided to ignore the regulatory challenges associated with this model. In the United States, several states (including most recently Maine 1 and Indiana 2
in early 2026) have enacted specific prohibition laws after operators sometimes structured the concept in a way that bordered on de facto gambling. The consequence: Where the dual-currency system is not properly structured or the option for free participation is not genuinely provided, offers risk being classified as illegal gambling. Last year, the California legislature enacted an amendment of the penal code which even prohibits online sweepstakes that simulate casino-style gambling, utilizes a dual currency system and awards cash equivalents. 3 The picture is more nuanced in Germany. Unlike in the U.S., there are currently no specific regulations in this country
1 See Maine Senate Bill 2007, dated April 2, 2026, https://legiscan.com/ME/text/LD2007/id/3287817 2 See Mississippi Senate Bill 2104, dated March 3, 2026, https://legiscan.com/MS/bill/SB2104/2026 3 See California Senate Bill AB813, dated October 11, 2025, https://www.leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_ id=202520260AB831; see also Kirschner , Daily Fantasy Sports and Sweepstakes in California, IMGL Magazine, September 26, 2025, https://www. imgl.org/publications/imgl-magazine-volume-3-no-1/daily-fantasy-sports-dfs-and-sweepstakes-gambling-in-california/
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IMGL MAGAZINE | JUNE 2026
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