Step 1: Set Up Your Business

To legally operate a sweepstakes business, you need to register a U.S.-based company. This is a fundamental requirement to open a business bank account, apply for payment processing, and ensure your business meets regulatory requirements.

Choosing the Right Business Structure

There are two main types of business structures suitable for a sweepstakes company:

1. Limited Liability Company (LLC)

   • The fastest and most cost-effective option.
   • Provides flexibility in tax filing, which can help reduce long-term tax liabilities.
   • Ideal for small to mid-sized sweepstakes businesses.

2. Corporation (C-Corp or S-Corp)

   • More suitable for businesses looking to attract investors.
   • Provides stronger credibility, which is beneficial when partnering with banks, financial institutions, or major gaming platforms.
   • Recommended if you plan to expand your sweepstakes operation significantly.

Selecting a State for Registration

Different states have different regulations and cost structures for business incorporation. Some of the best states for setting up a sweepstakes business include:

• Nevada – Offers strong privacy protections for business owners and has favorable tax laws.
• New Mexico – Affordable and easy to manage for LLCs.
• Delaware – Best for corporations, as Delaware courts specialize in business-related legal cases, making dispute resolution easier.

Finding a U.S. Business Partner

To successfully set up a sweepstakes company, a U.S. resident must own at least 10% of the business.

• This improves trust with banks and payment processors.
• A local business partner can receive business mail and act as a contact person for banking institutions.
• Having an experienced partner in the sweepstakes or gaming industry can enhance approval chances.

Step 2: Secure a Physical Office

Banks and payment processors require a real office for your sweepstakes casino business. A virtual address is not enough—you need a legitimate office location to prove that your business is not a shell operation.

Office Requirements:

• A physical office space in the U.S.
• Utility bills and a landline phone number registered to your company.
• A business sign with your company name on the office door (some payment providers may request photos for verification).

Step 3: Prepare Key Compliance Documents

To successfully open a business bank account and apply for payment processing, you need to provide comprehensive compliance documentation.

Essential Documents:

1. Anti-Money Laundering (AML) Policy – Ensures your business follows AML regulations to prevent fraud.
2. OFAC Sanctions Policy – Confirms compliance with the U.S. Office of Foreign Assets Control regulations.
3. Responsible Gaming Policy – Outlines player protection measures and responsible gaming guidelines.
4. Data Protection Policy – Ensures proper handling of customer data in compliance with U.S. data protection laws.
5. Certification of Control – A legal document verifying business ownership and structure.

Estimated Cost: $6,000 – $10,000, depending on legal and compliance service providers.

Step 4: Obtain a Legal Opinion

A legal opinion from a recognized law firm is required to prove your business legitimacy to banks and payment processors. This document is a critical component of the licensing and approval process.

Why a Legal Opinion is Important:

• Mandatory for opening a settlement bank account.
• Banks may reject your application without this document.
• Improves approval chances with payment processors.
• Issued by a trusted law firm, which strengthens your business credibility.

Estimated Cost: $20,000 – $40,000, depending on the law firm’s reputation and experience.

Step 5: Open a U.S. Bank Account

Banks are very strict about approving accounts for sweepstakes casinos due to the high-risk nature of the business. To improve your chances of approval, you must:

• Submit all required business documents, including your legal opinion and compliance policies.
• Deposit an initial balance of $50,000 to $100,000 to demonstrate financial stability.
• Show normal business transactions for at least two months (such as rent payments and supplier invoices).
• Work with a high-risk-friendly bank that accepts sweepstakes businesses.

Step 6: Apply for Payment Processing

Once your business bank account is approved, you can apply for payment processing services to accept credit card payments, ACH transfers, and crypto payments.

Required Documents for Payment Processing:

• A U.S. business entity with a working bank account.
• Compliance documents and payment processing history (if applicable).
• A business plan with realistic revenue expectations.

Payment Processing Fees (2025)

Note: Pricing may vary depending on the payment processor and risk level of the business.