Sweepstakes parlor

A sweepstakes parlor (or sweepstakes café) is an establishment that gives away chances to win prizes with the purchase of a product or service, typically internet access or telephone cards. They began to appear in the Southern United States some time around 2005, and quickly proliferated. Purchased entries are redeemed using computers at the establishment, which contain specialized software that presents whether a participant has won a prize. Results are often presented using mechanisms that resemble casino games, such as slots, and the facility itself may contain casino motifs in their overall decor.

There is controversy associated with the operation of such businesses and whether or not they violate anti-gambling laws. Operators and the companies that provide the systems used maintain that they operate in accordance with laws governing promotions and sweepstakes, but critics of sweepstakes parlors have argued that these establishments are designed to exploit technicalities to skirt gambling laws, and that their patrons are more interested in using the facilities for gambling than actually using the services that they had purchased. Multiple U.S. states have enacted laws designed to ban or restrict the operations of sweepstakes parlors.

A sweepstakes parlor sells a service or product, usually internet access or telephone cards. When a purchase is made, a number of chances to win prizes are given to the consumer. Proponents compare this practice to similar promotional giveaways by other businesses, such as McDonald's' Monopoly promotion, which are legal in most areas. In one example of a sweepstakes parlor that sells phone cards, the operator gives away 100 chances for every dollar spent on a phone card. Chances may also be given without a purchase just for coming into the establishment.

Sweepstakes parlors are most often located in or adjacent to strip malls. Computer terminals are set up inside the parlors, where patrons can see if they have won a prize by playing a casino-style game, similar to a video slot machine. The decor of the cafes may also include casino-inspired elements and motifs.

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