So, youâve probably heard the phrase floating around the internet for the past few years, maybe even walked past a few on your way to WalmartâŚbut what exactly is a Sweepstakes Parlor? Where did they come from? When?
Sweepstakes parlors (or cafes) exploded onto the scene in America in 2005 and have since multiplied in their thousands throughout the whole of America. Itâs a simple business model; the stores provide internet access and/or long-distance calls for a fee. However, these are not your average âinternet cafesâ and most of the customers are there for a different reasonâŚ
So, what are they?
The small cafes, often found in strip malls or gas stations, offer their customers either internet access or long-distance calling time. However, thereâs a noticeable twist.
In purchasing this access, they then receive entries into a sweepstake, where they can win prizes by using the computers provided to play casino-style games, such as internet-based slot machines or specialist gaming tables. The casino-style branding can be seen throughout, and it is more than obvious that the internet access and calling time is merely a front for the main product: the games!
The prizes won are usually more entries, however, at the end of the session, the gamers can then exchange their entries for cash.
Gambling or gaming?
There has been some debate (and by some, we mean a lot) as to whether these parlors constitute as gambling. Parlor owners will insist that itâs merely gaming, however, many have queried whether this is just a ploy to skirt gambling laws within certain states.
The owners have argued for years that the entries you receive when purchasing your call time or internet access are similar to the sweepstakes that large companies such as McDonaldâs promote from time to time.
It can also be argued that some customers would come into the parlors simply to use the internet, or make a long-distance phone call, however, upon entry you can see that this obviously isnât the main draw.
Casino branding can be seen both outside and in, with promises of jackpots and free entries to lure in the crowds. Specialist software in the form of gaming tables litter the cafes, each set up in the theme of some casino game or another.
Mcdonaldâs may run its own sweepstakes. but I think we can all agree that the customers are generally there for burgers first and foremost. However, with sweepstakes parlours we rather doubt itâs for the phone time.
In any case, gambling or not, sweepstakes parlors have been climbing in popularity since 2005, and by 2013 Florida alone was estimated to have over 1000 sites.
The trouble with sweepstakes parlors
There have been many issues with Sweepstakes Parlors over the years, with controversies following the business model since its conception.
The main legal issue is obviously the question mark surrounding its classification (gambling or gaming). However, from this debate emerges a new issue. If it isnât gambling, and the prizes are already predetermined, then why do customers play casino type games that give the impression they can alter the outcome of their prize?
These parlors provide games that mimic casino themes almost exactly, such as âLucky 7âsâ etc. However, with sweepstakes parlors you have either won, or you have not. No matter when you press the button which stops the flashing spinning wheel, it will always be the same result.
Some have seen this pseudo-interaction as misleading and the inference that customers can change their fate when they canât, as false advertising. In essence: gambling without the chance of using any skill or luck to win.
Another issue that crops up in the wide world of Sweepstakes Parlor is that as they arenât classified as casinos, theyâre not regulated or taxed in the same way that an
online sweepstakes casino
would be. This could lead to a variety of issues such as dodgy business practices, no legal need to display gambling advice/help and no age limitations.
The cafes also attract the attention of thieves due to their often isolated locations, high cash flow and low security. The cafes also often have a skeleton crew working which makes it easy pickings for folks with low morals and empty pockets.
The negatives in shortâŚ
- Mimicking casino themes with no chance for customers to alter the outcome
- Less regulated than casinos which could lead to some questionable business practices
- High chance of robbery due to isolated locations with low security and a lack of staff
Final thoughts
If weâre going in for the chance to play some fun games in a safe environment, weâre going to avoid the controversy and head over to somewhere like Stake.us; where everything is clear, regulated and there are no predetermined results!
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