The History and Evolution of Sweepstakes in America

Sweepstakes have been a staple of American culture for decades, providing an exciting opportunity for consumers to win big prizes while supporting their favorite brands.

The history of sweepstakes in America dates back to the early days of mail-in contests, which companies used as a marketing tool to increase brand awareness and drive sales.

Sweepstakes have evolved with the times; what was once a form of marketing has now turned into a multi-billion-dollar industry. Companies that once used sweepstakes to collect personal information and market their products are now more widely known for their sweepstakes than the products they intended to promote.

We’ve also seen sweepstakes contests move online, prompting the rise of sweepstakes casinos, where players can spin the reels on slot machines and play live dealer games.

Let’s look at how sweepstakes in America have evolved since their inception.

History of Sweepstakes in America

In the early 20th century, companies began using sweepstakes as a means to promote their products and services. These early sweepstakes were primarily conducted through mail-in contests, where consumers were required to send in a postcard or entry form to be entered into a drawing for a chance to win a prize. These contests were often tied to the purchase of a product or service, and the prizes were typically small, such as a free product or a discount coupon.

As the popularity of sweepstakes grew, so did the size and value of the prizes. By the 1950s, sweepstakes had evolved into large-scale national contests offering substantial prizes, such as cars, trips, and cash. These sweepstakes were typically conducted by major corporations, such as Coca-Cola and Procter & Gamble, and were promoted through various forms of media, including television, radio, and print advertising.

Some of the most popular sweepstakes games have included the McDonald’s Monopoly sweepstakes, Pepsi Play for a Billion, and the Nickelodeon Stocking Stuffer Giveaway.

Of course, you can talk about sweepstakes without mentioning the popular Publishers Clearing House games, which we’ll cover in the next section.

Magazine Marketing and Sales

Sweepstakes games became wildly popular in the publishing industry when magazines began using these games as a way to market their publications.

One of the most popular was the American Family Publishers (AFP) Sweepstakes. AFP was founded in 1977 and used sweepstakes to convince potential readers to sign up for magazine subscriptions. Popularity increased when the AFP hired Ed McMahon as its spokesperson.

Although AFP went out of business in 1999, it’s still regarded as the operator of the most popular mail-in sweepstakes game in America.

Other magazines began following suit, and soon both Reader's Digest and Publishers Clearing House offered similar sweepstakes to attract subscribers. Eventually, Ed McMahon also became the spokesperson for this popular sweepstakes game.

In April 2025, Publishers Clearinghouse filed for Chapter 11 and announced it would no longer be paying out prizes for “lifetime winners”. ARB Interactive purchased Publishers Clearinghouse in July 2025, and the new owners announced they would continue running the popular sweepstakes games.

Mail-In Sweepstakes Regulation

Because mail-in sweepstakes games resembled gambling, U.S. federal and state governments stepped in to ensure that such contests were regulated to prevent unlawful gambling-related activities.

One of the provisions stated that no purchase is necessary to play sweepstakes. There is also a minimum age requirement to participate in sweepstakes games. For McDonald’s sweepstakes, the minimum age to play is 13 years old.

The Rise of Online Sweepstakes

The rise of the internet and the advent of online sweepstakes in the 1990s marked a significant turning point in the history of sweepstakes in America. Online sweepstakes allowed companies to reach a much larger audience, and they also made it easier for consumers to enter and track their entries. With the ability to enter sweepstakes from anywhere in the world, online sweepstakes quickly became a popular form of entertainment and a way for consumers to win big prizes.

Today, sweepstakes have evolved into a multi-billion-dollar industry, with thousands of sweepstakes offered by companies of all sizes. Online sweepstakes are now the most popular form of sweepstakes, with many companies reaching consumers and increasing engagement through social media and mobile apps.

In addition, sweepstakes have become an important tool for companies to gather consumer data and insights and to build brand loyalty.

Online Sweepstakes Challenges

The rise of online sweepstakes has also led to increased sweepstakes fraud, which prompted government regulators to step in and impose stricter rules and regulations on the industry. In response, many companies have implemented measures to ensure the integrity of their sweepstakes, such as using third-party auditors to verify winners and publishing the official rules and regulations on their websites.

Despite these challenges, sweepstakes continue to be a popular way for consumers to win big prizes and for companies to promote their products and services. The history and evolution of sweepstakes in America has been a fascinating journey, and sweepstakes will likely continue to be an important part of American culture for many years to come.

Sweepstakes Cafes

With online sweepstakes challenges so popular, it’s probably not surprising that other industries began to form around this industry. With the rise of the internet in the late 1990s and early 2000s, sweepstakes cafes began popping up.

At these cafes, players could purchase a pass to use a computer and play online casino games. The owners of sweepstakes cafes claimed they weren’t operating illegal casinos; instead, they were selling a pass to use the internet.

Yet, the law did not see eye to eye with these internet cafes, as sweepstakes laws dictate that no purchase is necessary to play. Many internet cafes shut down because they could not afford the legal fees, and most states banned or restricted sweepstakes cafes, calling them a front for illegal gambling activity.

Sweepstakes Casinos: A New Form of Online Sweepstakes

After the internet cafe debacle of the early 2000s, the sweepstakes industry evolved yet again. A new type of sweepstakes gaming industry started to take hold, one that learned from the mistakes of internet cafes and offered a product that required no purchase to participate.

Enter: social casinos and sweepstakes casinos.

How Sweepstakes Casinos Work: Same Concept, Different Model

As the internet continued to evolve, so did sweepstakes games. Operating under U.S. sweepstakes laws, a new form of sweepstakes games became available.

In 2012, High 5 Games, a developer of slot machines, launched the first social casino, featuring only 30 games. In 2019, Chumba Casino launched its own social casino, and more companies followed suit.

At social casinos, players could purchase Gold Coins that they could exchange for slot machine spins.

In January 2023, High 5 Casino updated its model to offer Sweepstakes Coins, which could be redeemed for cash prizes, once players had won a minimum number of them. High 5 also expanded its game library to offer more than 1,200 games, including variety games and live dealer games.

The rules were the same: no purchase was necessary to play. You could obtain Free Sweeps Coins in a variety of ways, including through no-purchase bonuses, login bonuses, and mail-in requests (a throwback to the old days of mail-in sweepstakes).

By early 2025, more than 40 sweepstakes casinos had launched.

Although some of the branding varied, the concept was familiar. Players could sign up for an account, accept a no-purchase welcome bonus of Gold Coins and Free Sweeps Coins, and use coins to play online casino games. Of course, players could purchase more Gold Coins if they wanted to (often with a bonus of Free Sweeps Coins). Once they’d won the minimum threshold of Sweepstakes Coins, they could redeem SC for cash prizes or gift cards.

How to Win Prizes at Sweepstakes Casinos

Sweepstakes casinos offer two types of prizes, including cash prizes and gift cards. To win a prize, players must use Sweepstakes Coins to play casino games.

Once playthrough requirements (the number of times Sweeps Coins must be played before they’re deemed redeemable) are cleared and players have won the minimum number of SC they need to initiate a redemption (anywhere from 10 SC to 100 SC), Sweepstakes Coins can be redeemed for cash prizes or gift cards, depending on the sweepstakes casino’s redemption policies.

Players must also complete KYC verification checks to ensure they live in a state where the sweepstakes casino operates and are of legal age to play (all players must be at least 18 years old, and in some cases, they must be at least 21 years old to participate).

Cash prizes are awarded by ACH transfer, instant banking transfer, debit card, or e-wallet.

Prediction Sites: A Natural Evolution of Sweepstakes Casinos

The online casino industry isn’t the only one benefiting from sweepstakes laws in the U.S. In addition to casino games, players can now make predictions on the outcomes of sporting events and pop culture events.

Sports prediction sites like Sportzino, Kickr, Onyx Odds, and Punt allow players to predict the outcomes of sporting events (similar to moneyline, props, and parimutuel bets) using Gold Coins and Sweepstakes Coins.

Sites like Sportzino also allow players to make predictions on current events, including celebrity makeups and breakups, and political elections.

The coin system works the same for prediction sites as it does at sweepstakes casinos. Make predictions with Gold Coins to play just for fun, or with Sweepstakes Coins for the potential to redeem them for cash prizes or gift cards.

You can purchase more Gold Coins if you run out, and you may even get a bonus of Free Sweeps Coins with your GC purchase.

Conclusion

Sweepstakes have been a part of American culture for decades, evolving from mail-in contests to the rise of online sweepstakes and sweepstakes casinos.

What started as a marketing tool to increase brand awareness and drive sales has evolved into an entire multi-billion-dollar industry.

The rise of online sweepstakes has made it easier for consumers to enter, track, and win big prizes, but it has also led to an increase in sweepstakes fraud, which is why government regulators have stepped in to impose stricter rules and regulations on the industry.

Of course, sweepstakes casinos and prediction sites have also emerged, allowing entrants to play casino games or predict the outcomes of events for the chance to win cash prizes and gift cards.

Despite challenges, sweepstakes continue to be a popular way for consumers to win big prizes and for companies to promote their products and services. And now the industry has expanded even further, as sweepstakes aren’t only offered to promote businesses but also as a form of entertainment in their own right.

As the sweepstakes in the U.S. continue to evolve, we’re excited to see how this industry transforms the way Americans play these games to win big prizes.