SWEEPSTAKES
system that violates this may be classified by the GGL as illegal gambling. The integrity of this separation principle is the foundation of the entire legal framework. With regard to pricing for Social Coins, it is recommended the lowest price below 1 euro or 2 euros 17 is set to provide consumers with a low-barrier entry point. Furthermore, customers should be able to view an overview of their total expenditure at any time. While active notification after a monthly amount (e.g., 50 or 100 euros) is not strictly required, it is advisable from a consumer protection perspective. Transparency toward users With regard to the prices of Sweep Coins, complete transparency should always be maintained for customers. This means that it should be specified until when a given price is available for a specific quantity of coins. Customers should be informed in a timely manner of any changes regarding availability and price. Furthermore, the platform’s visual design should not give the impression that cash or non-cash prizes can be won by spending money. The social casino aspect and the fact that the customer never has to spend money should be emphasized. Advertising communication When advertising the offering, care should be taken to ensure that minors are not specifically targeted. The advertising message should generally focus on the social casino game mode with Social Coins. Any active reference to a direct link between the purchase of Social Coins and the potential acquisition of Sweep Coins should be avoided. All offers on the German market must be designed to be as consumer-friendly and transparent as possible with regard to prizes. Care should be taken to ensure that only prizes that can actually be won are displayed and marketed. The focus of advertising should be on the social casino with the Social Coins, as this represents the core service. Other applicable areas of law Although sweepstakes offers adapted to the German market cannot be classified as gambling within the meaning of the IST 2021 and the specific provisions of the Money Laundering Act for online gambling are not directly applicable, a money laundering obligation may arise from the use and storage
of Sweep Coins as a virtual currency and the possibility of redeeming them for prizes. It is therefore advisable to implement a deletion requirement for certain coins to avoid banking transactions. In addition to gambling law, sweepstakes operators in Germany are subject to a number of other regulatory areas that warrant careful attention. With regard to data protection law, the following applies: To the extent that an operator collects and processes personal data as part of its offering, the General Data Protection Regulation (GDPR) applies, which is directly applicable in Germany and supplemented by the Federal Data Protection Act (BDSG). Since the planned services are targeted at the German market and a German- language website is operated, the territorial scope of the GDPR is met. The operator is therefore obligated to comply with the requirements of the GDPR; in particular the principles of data processing under Article 5 of the GDPR. Under competition law, the operator must, among other things, comply with the Unfair Competition Act (UWG), which ensures fair competition and prohibits misleading, harassing, or deceptive advertising. An aggressive business practice that is likely to induce the consumer to make a decision they would not otherwise have made is considered unfair. In consumer protection law, the following must also be noted: In the case of in-game purchases, the general 14-day right of withdrawal for digital content does not apply, as it expires upon access to the digital content. The customer should therefore be informed of the waiver of their right of withdrawal with every purchase and actively consent to it. Conclusion and outlook The sweepstakes casino sector is at a regulatory crossroads worldwide. In the United States, a rapid transformation has begun: What started in 2025 with measures in six states has expanded into a broad legislative movement in 2026, with plans for bans in several additional states. Increasingly precise legal definitions of dual-currency systems and the drastic sanctions demonstrate that U.S. lawmakers are systematically seeking to close the regulatory gray area in which sweepstakes operators have operated until now. Germany, on the other hand, is in a different phase of this
17 Cf. Sörup , MMR 2002, 142 (144 f.) who assumes a minimum threshold of 2,50 euros
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IMGL MAGAZINE | JUNE 2026
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