A Troublesome Tale of Sweepstakes and Young Gamblers
Enhanced Chance of Gambling Dependence in Youth Due to Sweepstakes, Warns Specialist
While only a handful of U.S. states allow for legal online casino gambling, sweepstakes games—often offering entertainment similar to online casino games—are available nationwide, causing concern, particularly regarding problem gambling in young adults.
Brianne Doura-Schawohl, a well-known consultant, responsible gambling advocate, and CEO of Doura-Schawohl Consulting LLC, recently discussed this issue with Casino Reports. Doura-Schawohl emphasized that young adults could develop gambling-related problems even when playing sweepstakes games with virtual currency.
The key concern lies in the similarities between sweepstakes and online casino games. As Doura-Schawohl explained, the brain does not discriminate between "real" and "fake" money when it comes to addiction. The only difference is the currency.
Traditional online gambling operators use real money for every wager, be it poker, roulette, or slots. On the other hand, sweepstakes operators typically offer casino games using virtual currency—most often free to obtain, but purchaseable with real money to continue playing. Some sweepstakes operators provide two types of virtual currencies, with the second granting players a chance to win real money prizes.
From Casual to Compulsive Gambling
Doura-Schawohl emphasized that, despite the impact of legal sports betting, sweepstakes apps have a greater risk of gambling-related harm due to their widespread availability. "The risk of becoming addicted to these products is still very real," she acknowledged. "Just because it's fake money doesn't make it better."
This concern comes after a string of meetings between Tribal leaders and representatives from the sweepstakes industry (who, in response, formed the Social and Promotional Gaming Association, or SPGA). The SPGA aims to promote responsible sweepstakes gaming and raise awareness of compliance in different jurisdictions—a move that could shape the future of sweepstakes.
Risks for Young Gamblers
While many may think that sweepstakes games using virtual currency are relatively harmless, they can pose significant risks. These risks include:
- Lack of financial awareness
- Addiction and escalation
- Social and emotional impact
- Legal and regulatory gray areas
Young adults are particularly vulnerable due to factors such as impulsivity, lack of experience, social influence, and potential habit formation, leading to long-term financial and emotional problems.
To mitigate these risks, it's crucial for young adults and their families to stay informed about the potential dangers, adopt responsible gaming practices, and seek support when needed. Education, understanding the risks and consequences of gambling, and access to helplines and support groups (like Gamblers Anonymous) are crucial for those struggling with gambling issues.
- Despite the use of virtual currency in sweepstakes games, young adults can still develop gambling-related problems, as emphasized by responsible gambling advocate Brianne Doura-Schawohl.
- Sweepstakes games, such as those found on apps, have a higher risk of gambling-related harm compared to legal sports betting, due to their widespread availability.
- Some sweepstakes operators offer virtual currencies that can be purchased with real money, potentially leading to addiction and escalation in young adults.
- Understanding the risks of sweepstakes gambling, adopting responsible gaming practices, seeking support when needed, and being aware of resources like Gamblers Anonymous are crucial for young gamblers and their families.
