---
title: "What is a dual-currency sweepstakes model? | Jacobs Counsel"
url: https://jacobscounsellaw.com/answers/what-is-a-dual-currency-sweepstakes-model
description: "A structure where players buy one currency for entertainment play and separately receive a promotional currency that can be redeemed for prizes."
lang: en
---

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Gaming & Skill

# What is a dual-currency sweepstakes model?

Short answer: A structure where players buy one currency for entertainment play and separately receive a promotional currency that can be redeemed for prizes. Its legality turns on whether the promotional currency converts the promotion into a lottery or gambling under a given state's law.

In a dual-currency model, the purchase currency (often called gold coins) buys play but has no redemption value. A second promotional currency (often called sweeps coins) is distributed with purchases, through free alternative methods of entry, and through promotions, and can be redeemed for cash or prizes.

The legal theory is that consideration attaches only to the non-redeemable currency, so the redeemable side is a promotion rather than gambling. Regulators and courts have not accepted that theory uniformly. The analysis in each state turns on how the free entry method actually works, how the two currencies interact at purchase, how redemption is priced, and how the product is marketed.

This is the model under the most active regulatory scrutiny in the current cycle, which is why operators are re-papering opinions written before it.

## Related deep-dives

- Sweepstakes gaming compliance: https://jacobscounsellaw.com/services/sweepstakes-gaming-compliance
- 50-state gaming legal opinion: https://jacobscounsellaw.com/50-state-gaming-legal-opinion

Updated August 12, 2026. General information only, not legal advice for your situation. A complimentary fit-and-intake call is not legal advice; representation requires a written engagement agreement.

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## More on Gaming & Skill

- Is my skill-based game legal in all 50 states?: https://jacobscounsellaw.com/answers/is-my-skill-game-legal-in-all-50-states
- What is a legal opinion letter for a gaming product?: https://jacobscounsellaw.com/answers/what-is-a-legal-opinion-letter-for-gaming
- Can a sweepstakes model operate in every state?: https://jacobscounsellaw.com/answers/can-a-sweepstakes-model-operate-in-every-state
- Do I need a gambling license for a fantasy sports app?: https://jacobscounsellaw.com/answers/do-i-need-a-gambling-license-for-a-fantasy-sports-app

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