Is time running out for the sweepstakes model? For NuxGame COO, Denis Kosinsky, that answer is a resounding no. However, it may not be too long before that vision for the future becomes a reality.
What was long viewed as a tool to reach players in states that haven’t ruled on, or have outlawed, iGaming, a shift in opinion has recently been evident.
This has witnessed the segment’s potential increasingly being recognised, as evidenced by a recent surge in popularity and therefore revenue. However, legislation is threatening to curtail the significant upswing.
Despite this, NuxGame has ushered in its own solution, which he believes is set to pay dividends across the coming years to repay the faith shown by the company.
Playing the waiting game
While states such as New York, Connecticut, Montana, Nevada and Louisiana pass bills concerning sweepstakes bans, others have opted to send multiple cease-and-desits orders under their own clampdown.
While iGaming still sits unregulated across a vast majority of US jurisdictions, Kosinsky begins by looking at if recent news emanating from the country is a cause for concern.
“We all know that the sweepstakes module is time based, I think in three to four years it will be restricted in the US, but the money is there now,” he says. “It’s the right time to enter the market and make profits, also we see in other GEOs the growth of it in LatAm and Canada.
“Our current path has been waiting for the product and launching our sweepstakes offering. We actually have five operators that are waiting to launch and use our new product in the US.”
Eilers & Krejcik Gaming projections suggest that sweepstakes’ gross and net revenue for the current year could reach $10.6bn and $3.4bn, respectively. However, KPMG has delivered a slight caution.
Noting the input of analysts, a warning of market saturation and the possibility of a shifting legal outlook could be evidenced. This is said to be due to the sheer number of fresh entrants witnessed recently and regulatory uncertainty.
Our time is now
Making an entry of any kind during what could be billed as a period of certainty, to varying degrees of opinion, could arguably be considered a slightly reckless strategy.
However, Kosinsky voices confidence that the company’s research and studying of the landscape has laid the perfect groundwork from which to build within the space.
“Basically, we saw the huge growth in the US market of sweepstakes, and we took this opportunity to go to this market,” he continues.
“We are totally aware that our current traditional online casino model can easily be fitted to the sweepstake model, and that it can be really profitable for us and our operators.”
As previously touched upon, the sweepstakes ecosystem has quickly become quite a saturated environment, much like numerous other aspects of the wider gambling industry.
This brings one question to the fore, what work goes into ensuring that a specific product can stand out, and simply doesn’t just become another among many?
“Our current solution already sets us apart in the industry,” Kosinsky notes. “We’ve proactively aligned with all necessary legal requirements for the U.S. market, ensuring compliance from day one.”
“In sweepstakes and social casinos, gamification and social interaction aren’t optional, they’re essential. Unlike traditional casinos where players are often satisfied with simply depositing and playing, this audience comes with expectations shaped by mobile gaming.
“Features like missions, achievements, leaderboards, and real-time player interaction are critical. Our solution is built with this mindset, offering a complete engagement system tailored to player behavior and compliant across diverse markets.”
Sit back and relax
Easing operational pain points for clients is a prime ambition across many businesses, however, in the instance of this latest venture Kosinsky believes NuxGame has cracked the case.
Among the numerous facets of its sweepstakes solution, the usage of one particular consistent industry talking point of recent times has to come to the fore.
“AI, in our perspective, is all about player behavior, CRM analysis, KPI metrics, predictions, player behavior and, of course, content generation,” he explains.
“The AI engine offers effortless customisation of features, such as achievements. It observes player behaviour and analyses betting history to generate relevant achievements.”
However, correctly utilising technology is merely one way of staying ahead. Players need to be not just entertained, but welcomed and feel a sense of challenge, progression and ultimately victory.
One such way of achieving such a feat concerns another common talking point, gamification. More precisely, how to fully harness such elements to make users feel truly valued.
“We transformed our existing turnkey gamification engine into a fully tailored sweepstakes solution, elevating engagement while maintaining flexibility and speed to market.” he says.
“Our upgraded gamification suite now includes real-time chat between players, achievements, personalised missions, leaderboards, dynamic win feeds, and player referral programs, delivering a truly immersive and socially engaging experience.”
All of this is being done, Kosinsky notes, with a view to bridging the gap between operators and game providers, as well as easing the burden and pressure on each of its clients.
“We’ve taken full ownership of the compliance and technology stack, so our partners don’t have to,” he explains. “With our sweepstake aggregation solution, it’s a single API and one unified contract streamlining everything from integration to launch.
“Operators can go live instantly with all available content. The same applies to our turnkey sweepstakes solution it’s plug-and-play, requiring zero effort from the operator’s side.”
