With a 15-0 vote, the committee passed AB 831 and advanced it to the Public Safety Committee.

The committee has a scheduled hearing on July 15. Should the second committee approve the bill, it would move to a Senate floor vote. It will then return to the Assembly, which passed it in May, if further amendments are made.

Tribes and Sports Betting Operators Urge Ban

During the roughly 45-minute session chaired by Senator Steve Padilla, representatives from the Native Tribes, including the San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), argued for closing loopholes that allow unregulated sweepstakes casinos to operate in the state.

Representatives from the Sports Betting Alliance (SBA), a trade group representing sports betting operators, echoed the concerns of the tribes.

The SBA emphasized that these platforms undermine tribal gaming exclusivity, threaten regulated markets, and lack proper consumer protections.

VGW, SPGA Call for Regulation Instead of Prohibition

Opponents, including VGW and the Social Gaming Leadership Alliance (SGLA), contested that the bill is overly broad, rushed, and risks criminalizing players and legitimate businesses.

In its opposition argument included in the committee’s bill analysis, VGW, the parent company of Chumba Casino, LuckyLand Slots, and Global Poker, asks lawmakers to scrap the “rushed, gut-and-amend legislation.” The company says they should instead focus on regulation.

VGW states that it aims to collaborate with lawmakers to establish a regulatory framework that will protect consumers while generating a new revenue stream for the state. The operator notes:

“The economic opportunity is significant. Based on industry projections by Eilers & Krejcik, California could generate annual revenue of $149 million through sale tax alone. Currently, there is no method for us to pay sales tax in California because ours is a digital product, but this is something we would be happy to do under an appropriate framework. We are also open to other potential sensible taxation frameworks and/or revenue stream to benefit the people of California.”

Meanwhile, the Social and Promotional Games Association (SPGA) called AB 831 “too vague, too rushed, and too risky.” The SPGA is a trade group representing the interests of the sweepstakes casino industry and advocating for responsible social casino gaming.

The association warns that the bill threatens free speech and legitimate commerce. It exposes app developers, influencers, and advertisers to harsh penalties simply for “supporting” these games.

The SPGA stresses that no evidence of consumer harm has been presented. It added that nearly 20,000 Californians have spoken in favor of sweepstakes casinos. Meanwhile, the bill would damage lawful, popular entertainment and major brand promotions.

Like VGW, SPGA asks lawmakers to reject AB 831 and instead create a regulatory framework.

Lawmakers Express Concerns Over Process and Scope

While the sweepstakes casino ban bill, introduced by Assemblymember Avelino Valencia at the end of June, passed unanimously, several lawmakers raised concerns about the process’s transparency, legal reach, and potential unintended consequences.

Senators also questioned the urgency surrounding the bill, especially as the sweepstakes provisions were inserted into an unrelated tribal gaming bill, a “gut-and-amend” approach.

The legislation targets operators, suppliers, payment processors, and celebrity endorsers. One such endorser is Ryan Seacrest, who is facing a lawsuit over his involvement with Chumba. However, there was confusion about whether it also targeted users of sweepstakes casinos.

Valencia stated that there will likely need to be a change in the language to clarify that it doesn’t include users. Additionally, he agreed to remove references to cardrooms from the bill to secure neutrality from that sector. The Assemblymember clarifies that the focus remains on sweepstakes operators and their support networks.

Aside from sweepstakes casinos, cardrooms, and daily fantasy sports (DFS) operators are also under threat in California. Attorney General Rob Bonta has announced sweeping changes to cardroom regulations, although his proposals have faced significant backlash. He also recently issued a legal opinion declaring that DFS is illegal in California.

These overlapping efforts reflect a broader crackdown on unregulated and gray-area gaming activities across California.

The post California Senate Committee Unanimously Advances Sweepstakes Casino Ban Bill appeared first on CasinoBeats.

On June 2, the Louisiana House passed Senate Bill 181 unanimously, following its passage in the Senate at the end of April.

Among its provisions, the bill classifies devices or platforms that use dual-currency payment systems as illegal. It calls for violation penalties of $10,000 to $100,000 and prison sentences of up to five years.

With the governor’s veto, sweepstakes casinos remain operational for now. However, legal action by the state’s authorities could change that.

Additionally, the Louisiana legislature has the authority to override the veto. Despite that, indications are that the chances of doing so are slim.

Governor Says Authorities Have Enough Power

In his June 12 veto letter, which The Closing Line published, Gov. Landry says:

“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana. Our current Louisiana Gaming Control Board has the regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”

The governor notes that the Board, the Louisiana State Police Gaming Enforcement Division, and the Louisiana Attorney General’s Office are all responsible for monitoring and regulating gaming in the state.

He adds that the state is already actively targeting illegal gambling, especially offshore and sweepstakes operators. Landry referenced successful cease-and-desist orders against offshore operators, demonstrating that the current system is capable of addressing the issue without the need for new legislation.

Landry goes on to say that the bill is too broad and can interfere with current enforcement actions. He writes, “For these reasons, Senate Bill 181 is not necessary.”

Louisiana Likely to Follow New York and Michigan’s Approach

Landry’s belief that state authorities can handle the issue of sweepstakes casinos aligns with successful enforcement actions seen in other states.

In early 2024, Michigan adopted a tough approach towards offshore and sweepstakes casinos. Following a series of cease-and-desist letters and legal threats from the Michigan Gaming Control Board, all sweepstakes casinos ceased operations in the state.

New York took a similar approach. Last week, New York Attorney General Letitia James announced that her office had shut down 26 sweepstakes operators. With the addition of a dozen or so platforms that had already left the state, only a handful of operators remain. However, they are likely to follow suit.

Elsewhere, Maryland and Connecticut gambling regulators also aggressively pursued sweepstakes operators, although with mixed results.

Connecticut Governor Signs Sweeps Ban Bill

The Connecticut Department of Consumer Protection Gaming Division (DCP) has already proven successful in pursuing sweepstakes casinos.

Earlier this year, it suspended the content provider license of High 5 Games due to its connection to High 5 Casino. The two eventually settled, and High 5 Games paid a $1.5 million fine.

The regulator’s enforcement actions resulted in a handful of other operators exiting the state. That includes industry leader VGW’s Chumba Casino, LuckyLand Slots, and Global Poker.

However, while DCP has been aggressive, it has not chased all platforms away. That will change, as Connecticut Gov. Ned Lamont signed Senate Bill 1235 into law, making sweepstakes casinos illegal in the state.

This means that Connecticut will become the second state to ban the platforms. Montana became the first state to do so last month.

Meanwhile, Nevada is taking a different but complementary approach. On June 5, Gov. Joe Lombardo signed Senate Bill 256, which strengthens state regulators’ authority to pursue unlicensed and out-of-state operators.

The law doesn’t explicitly prohibit sweepstakes casinos. Still, the additional legal power of the state will likely result in most platforms exiting Nevada.

The post Louisiana Governor Vetoes Sweepstakes Casino Ban Bill, Says It’s Unnecessary appeared first on CasinoBeats.

AG Letitia James Deems Sweepstakes Casinos Illegal

The AG office sent cease-and-desist letters to the targeted operators, arguing they’re conducting illegal gambling under New Yok law. The paw prohibits online platforms from offering gambling that involves risking something of value. That includes virtual coins that can be redeemed for cash or prizes.

In a press release, the AG emphasizes that sweepstakes casinos are not subject to regulatory oversight. That means the platforms could offer rigged games, putting New Yorkers at risk.

According to James: “online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances.”

The New York State Gaming Commission Chairman Brian O’Dwyer emphasized that sweepstakes games are insecure and unlawful.

He added: “I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”

Which Sweepstakes Casinos Have Left New York

Sweepstakes casinos started leaving New York in March after a Senate Bill moved to the floor for a vote. By late May, VGW, the parent company of Chumba Casino, LuckyLand Slots, and Global Poker, announced that it would stop sweepstakes play.

According to the AG’s office, the following platforms have left New York:

• Chanced
• Chumba
• DingDingDing
• Fliff
• Fortune Coins
• Fortune Wheelz
• Funrize
• FunzCity
• Global Poker
• Golden Hearts Games
• High 5 Casino
• Jackpota
• Luckyland
• McLuck
• Mega Bonanza
• NoLimitCoins
• Play Fame
• RealPrize
• Sidepot
• SpinBlitz
• Sportzino
• SweepSlots
• Sweeptastic
• TaoFortune
• Yay Casino
• Zula Casino

In addition to the platforms listed by the AG website, others that have discontinued operations in New York include Stake.us, Funzpoints, Vegas Gems, Moonspin, Rolling Riches, Smiles Casino, Carnival Citi, Punt.com, Pulsz, and Pulsz Bingo.

Some Platforms Still List New York as Eligible

While James has stated her office has stopped sweepstakes casinos in New York, some platforms still list New York as an eligible jurisdiction. They include:

• Crown Coins
• LuckyBird.io
• WOW Vegas

It is worth noting that these operators might also leave the state, so players should check the platform’s terms and conditions or sweepstakes rules for any updates.

Legislative Efforts to Ban Sweepstakes Casinos Continue

While AG James has taken direct enforcement action, companion bills to ban sweepstakes platforms officially are still active for the 2025 legislative session.

State Sen. Joseph P. Addabbo, Jr. introduced Senate Bill 5935 in March. Its advancement to the Senate floor triggered the initial mass exodus of platforms. However, the proposed legislation has made little progress since then.

The proposal’s companion bill, Assembly Bill 6745, advanced through the state’s Assembly Racing and Wagering Committee at the end of April. After over a month of no progress, it has picked up and moved through an additional committee.

New York’s 2025 legislative session adjourns on June 12. That means if New York wants to follow Montana, which officially banned sweepstakes casinos, lawmakers must act quickly; however, given the AG’s actions, that might not be necessary.

The post New York Attorney General Shuts Down 26 Sweepstakes Casinos appeared first on CasinoBeats.

Ban bills in both states have passed through the legislature and now await the governor’s signature. Once each governor signs it, the bans will become official.

Different Approach to Targeting Sweepstakes Casinos

On June 2, the Louisiana House passed Senate Bill 181 unanimously, echoing the Senate vote at the end of April.

The bill classifies devices or platforms that use dual-currency payment systems as illegal gambling. The ban covers casino-style games, including slots, lottery games, and sports wagering. It calls for violation penalties of $10,000 to $100,000 and prison sentences of up to five years.

If Louisiana Governor Jeff Landry signs Senate Bill 181 into law, it will take effect on August 1.

Sweepstakes advocate, the Social & Promotional Games Association has lambasted Louisiana’s decision, accusing lawmakers of conflating legal entertainment with illegal gambling.

In a brief statement, the SPGA claims the decision “threatens Louisiana’s economy by stifling innovation and driving compliant companies out of state.” 

The SPGA added: “It’s a step backward for consumer choice, lawful innovation and common sense.”  

Meanwhile, Nevada has taken a different approach. It does not target sweepstakes casinos explicitly, but it gives state regulators more power to target and prosecute out-of-state operators without Nevada licenses who are operating illegally.

Senate Bill 256 expands existing penalties under Nevada law to upgrade certain gambling offenses from misdemeanors to felonies. Violations will be penalized with fines of up to $50,000 and imprisonment for up to 10 years.

In addition, anyone found guilty of illegal gambling must forfeit all profits and gross receipts, with the funds redirected to Nevada’s General Fund.

Louisiana and Nevada Follow Montana’s Sweepstakes Lead

If the Nevada and Louisiana governors sign the ban bills into law, the two states will join Montana in banning sweepstakes casinos.

A few weeks ago, Big Sky Country made headlines as the first state to ban sweepstakes casinos. The passage of the law was also condemned by the SPGA. 

The association labeled the Montana law a “dangerous precedent,” which it deemed overly vague and potentially criminalizing legitimate promotional programs, such as Microsoft Rewards.

Montana sweepstakes casino players still have a few months to use up their available coins. The new law comes into effect on October 1.

Connecticut is Close Behind Louisiana and Nevada in Sweepstakes Ban

Connecticut is also on track to ban sweepstakes casinos. The state is just a formal step away from sending a ban bill to the governor’s desk.

On June 3, the House passed Senate Bill 1235, sending it back to the Senate for concurrence. Given that the last day of the 2025 Connecticut legislative session is June 4, the ban will likely move swiftly to the governor for a signature.

In addition to sweepstakes casinos, the bill will also ban lottery courier apps, such as Jackpocket. While available in over a dozen states, lottery couriers are unregulated in most.

By implementing a ban, Connecticut would follow Texas, where controversy surrounding two significant jackpot winnings via lottery couriers led to widespread scrutiny and moves to abolish the Texas Lottery Commission.

Status of Ban Efforts in Other States

Eight other states have proposed a ban on sweepstakes casinos in 2025, but several attempts have already failed.

Mississippi and Maryland Senates were the first two legislative chambers in the US to pass a ban. However, a disagreement with the House in the former and running out of time in the latter caused the bills to die.

In Arkansas, the bill sponsor withdrew the bill, while in Florida, two separate bills failed to pass the committee stage.

The Illinois legislative session ended on May 31 with the passage of a new sports betting tax. However, a bill to ban sweepstakes casinos also failed to make any progress.

New York is also nearing the end of its 2025 legislative session, which is scheduled to adjourn on June 12. There are two active ban bills in each chamber of the legislature. Both made movements but have stalled recently, so if they were to pass, lawmakers must move quickly.

Still, New York witnessed a mass exodus of sweepstakes casino operators anticipating a ban. Most recently, industry leader VGW ended sweepstakes play in the state, signaling a potential prohibition.

Two other states with a longer legislative session still have plenty of time to pass a ban. New Jersey and Ohio lawmakers adjourn on December 31. Ohio has a two-year session, meaning bills from this year carry over to the next.

The post Bills Banning Sweepstakes Casinos in Louisiana and Nevada Await Final Signatures appeared first on CasinoBeats.

Wilna van Wyk

The Connecticut General Law Committee has filed Senate Bill 1235, which would prohibit online sweepstakes casinos from operating in the state.

SB 1235 aims to prohibit lottery ticket resales and courier services and prevent sweepstake operators from offering actual or simulated online casino gaming and/or sports wagering. 

The Statement of Purpose of the bill reads as follows: 

1. Prohibit lottery ticket resales and ticket courier services.
2. Modify the Commissioner of Consumer Protection’s disciplinary authority concerning certain gaming licensees.
3. Require vendor and affiliate licensees to provide books and records.
4. Define and redefine certain terms concerning gaming.
5. Modify provisions concerning wagers on sporting events involving Connecticut intercollegiate teams.
6. Restrict who may review certain criminal history records checks.
7. Prohibit certain advertising.
8. Authorize certain bets and wagers on boxing and mixed martial arts.
9. Provide that certain persons conducting sweepstakes or promotional drawings shall not allow or facilitate participation in certain real or simulated online casino gaming or sports wagering.
10. Provide that any person who engages in professional gambling shall be guilty of a Class D felony.
11. Repeal a provision authorizing the commissioner to appoint a director to perform delegated functions.

A ticket courier service is defined earlier in the proposed legislation as a “for-profit delivery service operated for the purpose of (A) purchasing lottery tickets (i) for games authorized pursuant to this chapter, and (ii) on behalf of individuals located inside or outside of this state and (B) delivering or transmitting such lottery tickets, or electronic images thereof, to such individuals.” 

It also seeks to permit wagers on boxing and mixed martial arts contests, such as the UFC, as long as the wager does not violate new sweepstakes rules. 

SB 1235 also seeks to make punishments for professional gambling harsher. Professional gambling is defined, in existing Connecticut legislation, as “accepting or offering to accept, for profit, money, credits, deposits or other things of value risked in gambling” and goes on to give pool-selling, bookmaking, maintaining slot and one-ball machines as the first examples.

Existing law also prohibits pinball machines that award anything other than an immediate and unrecorded right of replay, roulette wheels, dice tables, and pushcards. It also captures any banking game played with cards, dice, counters, or “accepting any fixed share of the stakes therein.” 

Under the proposed legislation, anyone found guilty of being a professional gambler would face a Class D felony. Typically, a Class D felony in Connecticut can carry up to five years imprisonment. 

Connecticut Continues Sweepstake Crusade

Last year, the Constitution State issued a cease and desist order to VGW, one of the world’s largest sweepstake operators. 

The letter stated “VGW is hereby ordered to immediately cease and desist offering its games and services to Connecticut customers.” 

It added: “Failure to comply may result in additional action including, but not limited to, civil penalties under CUTPA and/or criminal penalties under Conn. Gen. Stat 53-287b and 53-278d.” 

In October 2024, it was reported that VGW had updated its terms and conditions to include Connecticut on the limited list of states where it does not offer services. 

A cease-and-desist letter issued earlier in the year stated, “VGW is hereby ordered to immediately cease and desist offering its games and services to Connecticut customers.

“Failure to comply may result in additional action including, but not limited to, civil penalties under CUTPA and/or criminal penalties under Conn. Gen. Stat. 53-278b and 53-278d.”

Connecticut Legislature Is Choc-A-Bloc with Gambling

Six bills were recently introduced in Connecticut, mainly related to sports betting. The bills to be considered range from legalizing in-flight betting to creating a cap on hold for operators in the state. 

Proposed measures to enhance player protection are also more in line with the bill prohibiting those offering illegal sweepstake products. 

Written By

Wilna van Wyk

Wilna van Wyk is an online casino enthusiast with over a decade of experience working with some of the world’s biggest gambling affiliates, including Thunderstruck Media and OneTwenty Group. She specializes in gambling sites and games and provides expert knowledge on the online casino industry’s essential fundamentals.

The post Connecticut Moves to Ban Online Sweepstakes Casinos with SB 1235 appeared first on CasinoBeats.

It comes following a strong year of engagement for sweepstakes casinos, in spite of opposition to the vertical, which have argued that they are unregulated casinos masquerading as social casinos. 

Gantz explained that sweepstakes casinos are a subset of freemium operators which means that they offer both free and paid-for features.

“In the US, it’s lawful in virtually every state to use sweepstakes to promote a product, service or brand with a sweepstakes giveaway,” Gantz continued.

“The general rationale for all sweepstakes in the US is simply that although there is a chance and a prize, there is no consideration for the sweepstakes because no purchase is necessary to enter or win. Free entry is the basic premise of legality for every sweepstakes in the United States, including the ones that are being offered by what is being called sweepstakes operators.”

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When the US online gambling market opened in 2018 after the fall of PASPA, European operators swiftly turned their attention towards the potential riches across the Atlantic. Much like prospectors during the California Gold Rush of the 19th century, ambitious entrepreneurs surged into the market, driven by visions of success in this brave new frontier.

However, within a few short years, it became evident that the real-money online gambling market wouldn’t deliver the easy riches many had anticipated. Operators faced a complex labyrinth of regulatory requirements, sky-high operating costs and evolving player demands. Major competition loomed large, and it quickly became clear that several dominant players would make it difficult for newcomers to claim their share of the market.

A New Gold Rush 

Fast-forward to 2024, and European operators find themselves at a crossroads. The allure of untapped American potential remains, but the economics are more daunting than ever. Rather than retreating across the Atlantic, these operators should explore alternative avenues. While traditional paths into the US real-money market have faltered, new and more accessible opportunities now present themselves. The social casino market is experiencing explosive growth, powered by the engaging draw of sweepstakes prizing. For those willing to adapt and innovate, it’s a transformative opportunity.

The social casino model offers operators a streamlined entry point into the US market. While state-level debates continue, in-market operations, backed by solid legal analysis, have established the sweepstakes gameplay model as a compliant business across more than 40 US states and most of Canada. Though notable hurdles remain, operators can navigate a path into the market without spending years buried under complex state-specific regulations or facing brutal competition from entrenched players. This path enables market entry at unprecedented speed.

Brand recognition remains a powerful asset. Numerous European operators who once had a US footprint departed amid increasing costs and fierce competition. When they shuttered their American operations, they left behind hundreds of thousands of players. Those players are still out there. If operators can reenter the market as social casino operators and reclaim a portion of their past audience, they have an opportunity to gain substantial advantage. While competition in social sweepstakes is rapidly intensifying, a compelling window of opportunity exists for European operators to secure market share before the space becomes saturated.

The Power of Collaboration

While entering the social sweepstakes market presents an attractive prospect, for many brands, this represents uncharted territory. Established real-money brands exploring the space for the first time may encounter challenges with the unique compliance and operational demands of the social casino market. Understanding the needs and expectations of a broad US audience may also prove challenging. 

Partnering with an all-solutions platform to launch – or relaunch – a brand across the US will alleviate many of these challenges while enabling rapid market entry. Speed-to-market provides a crucial advantage as competition increases. The timeline contrast is stark: even well-resourced brands with experienced development teams would be facing a year or more for independent development, while partnering with the right platform enables launch within months. For smaller operators, the complexity of independent development makes success highly improbable regardless of timeline. The shorter road offers compelling monetary incentives.  

By partnering with the right platform, brands can gain a decisive competitive edge in the dynamic social sweepstakes landscape. The American Dream remains very much alive for European operators. A new world of opportunity awaits exploration. With the right strategy and the right partner, the possibilities in the social sweepstakes space are boundless.

The post Rubystone: exploring new pathways into the US with social casinos appeared first on CasinoBeats.

“We expect some other areas around the world, not just the US, to start using the sweepstakes or equivalent. We believe that this platform will be very popular soon,” he explained, speaking to Joe Streeter, Editor of CasinoBeats. 

The vertical has been at the centre of much legal debate in the US and Oziransky conceded that similar debates may occur in other jurisdictions, however, he believes that it has the potential to reach the level of player engagement experienced currently in the US.

He said: “At the end of the day, most of the content is the same content but the experience is slightly different. You have an option to enjoy free play altogether, but then you can switch to things you can actually withdraw at the end of the day so you have two types of excitement.

“There’s much more social casino elements around it in terms of the whole experience. There’s in some cases a bit of a faster pace in the customer journey but then you can enjoy the content, the same gamification mechanics and some bonuses and mechanics that players are familiar with from real money casinos.

“There’s interesting things that are not in the real money casinos so I think it’s going to take place around different areas of the world.”

Telegram

During the interview, filmed at SBC Summit Lisbon, Oziransky also spoke about the importance of Vegangster working to meet the needs of operators.

Part of this remit for the firm has been the introduction of its Telegram casino platform, as the use of the messaging service continues to increase.

According to Oziranky, Telegram now has over one billion monthly users which he expects to grow even further in the future. 

He said: “We’ve recently launched our Telegram casino platform so operators that want to reach different new audiences on Telegram will be able to within a couple of days have their own Telegram casino live and running. 

“For those regions where Telegram is a tool that is being used, it’s getting more and more popular. We think that will continue. There’s quite a nice wave around Telegram so we expect more and more players coming through those Telegram bots and Telegram casinos to have the experience inside the mobile device. 

Simplification

Elsewhere, Oziransky expressed the need for Vegangster to simplify its “back office” for its operators. 

“In general, operators are overwhelmed with a lot of things that need to happen to succeed in this market,” he explained. “We’re now working on rebuilding from the ground up the whole back office approach.

“That includes a lot of AI tools that will help them to work around the content, creation of the content, translation of the content and so on. We also want to wrap this very impressive engine that we have inside the platform with a very simple interface for bonus creation, unification creation and so on.

“Usually the platforms are built gradually and they add more and more functionalities that might get quite complex at some point. We want to make sure that the simplified approach is based on data, on usage and is something that is very easy for operators to work with and create all those very nice onboarding mechanics.”

To hear Oziransky detail Vegangster’s expanding portfolio and the future of sweepstake casinos, click HERE to watch the full video. 

The post Michael Oziransky, Vegangster: Sweepstake casinos can go global appeared first on CasinoBeats.

Acting as a trade body for the sector, the SPGA has brought together companies within the social casino space to uphold player protection and create a “safe, legal and engaging” social gaming environment. 

“The formation of the SPGA is a critical step toward establishing a clear and cohesive voice for the social sweepstakes industry,” said Seth Schorr, CEO at FSG Digital Inc.

“By creating this association, we are committed to helping regulators and policymakers understand how our industry’s products work and how they comply with the appropriate state and federal laws.” 

Sweepstake casinos allow players to access free-to-play casinos that often operate using in-game currencies, with players not always needing to make any deposits while still being able to gain prizes. 

The sector has faced much scrutiny in recent years, with some seeing social casino offerings as illegal operations due to their lack of licensing. Also, some unlicensed sweepstake casinos will allow players to make deposits to purchase in-game currencies. 

The SPGA has established internal committees to focus on two key areas, player safeguards and regulatory compliance, to provide regulators, policymakers and players with “a comprehensive understanding” of sweepstakes offerings. 

Under the player safeguards initiative, the SPGA will develop educational resources for players while expanding mechanisms to address consumer complaints and enhance player protection. 

Meanwhile, the regulatory compliance initiative will develop policy principles to “maintain alignment with the established regulatory and legal structures that underpin social games”. 

This will hope to provide regulators and policymakers with a comprehensive understanding of the compliant and consumer-first operating model of the sweepstakes sector, highlighting the ways operators ensure player protection. 

“The SPGA is committed to fostering a cohesive industry voice through collaboration among member companies,” added Camilla Wright of Red Knot Communications, a spokesperson for the new industry body. 

“Our goal is to provide forums for sharing knowledge and best practice mutual support and to create an environment that puts consumers first.

“By prioritising transparency and responsible practices and communicating this effectively, we will have an industry that thrives as it ensures that millions of adult American consumers can continue this form of online entertainment with confidence.” 

The SPGA will kick-off these initiatives on 1 October by bringing together industry experts for a discussion on the future of social and promotional gaming.

Eilers-Krejcik’s Managing Director of Digital and Interactive Gaming, Matt Kaufman, recently came out in support of social casinos, explaining that “sweepstakes are operating within the confines of legal constructions of sweepstakes contests and are acting entirely within their rights”.  

The post SPGA launches to encourage safer social casino gaming appeared first on CasinoBeats.

He joined Brad Allen on the Zero Latency podcast to discuss the American Gaming Association’s call for closer scrutiny of sweepstakes casinos and warning about what it views as the need for more regulation of the sector.

Kaufman insisted that strictly speaking, “sweepstakes are operating within the confines of legal constructions of sweepstakes contests and are acting entirely within their rights”.  

He added that this had created a “sticky situation” which had generated much negative coverage from actors who he believes “wish they had a better case against sweepstakes”. 

The fact that the companies taking aim at the sweepstake sector chose to do so through the media, rather than going down the legal route, is indicative of the lack of a substantial case, according to Kaufman. 

“Just because you are operating a casino-style product in an adjacent space, doesn’t mean that you have the indefinite moat around it in all directions, forever – this is a free market economy,” stated Kaufman. 

He added that payment processors requiring KYC and AML checks nullifies a significant amount of that argument against sweepstake casinos. 

Looking ahead, Kaufman predicted that states which have embraced online casino regulation are more likely to clampdown on sweepstake casinos, with there being a likelihood that some states follow the lead of Michigan and issue cease and desist orders. 

That being said, he emphasised that in the majority of the country, sweepstakes are just legal and compliant businesses and in most states, it is difficult to envisage action being taken. 

Kaufman offered his prediction that an increasing number of licensed operators will also enter the sweepstake space, as he revealed that “nothing is stopping them”. 

Mixed stances on thriving sector 

The views were expressed in light of an AGA policy paper that talked of sweepstakes in scathing terms. It claimed that sweepstakes avoid regulations and licensing through a dual-currency system, but do still “look and play like an online casino”. It warned that the “opaque nature” of such operators could also significantly elevate the risk of bad actors having an opportunity for illegal activity. 

The AGA stated: “The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions. These sweepstakes-based operators have weak,if any, responsible gaming protocols and few, if any, self-exclusion processes.”

This criticism prompted Laurence Escalante, the owner of the Virtual Gaming Worlds, to also bat back as he dismissed the notion that his business operated outside an established legal framework. 

Furthermore, stakeholders from the technology and affiliate marketing sectors have backed the sweepstakes industry as a key growth sector for the US market. 

GiG Chairman Mikael Riese Harstad revealed that having signed up one of the largest land-based casino operators to its SweepX platform, the group saw significant appetite from remote operators to be involved in the digital sweepstake space. 

Harstad emphasised that the potential for sweepstakes may well open up in other regions and won’t be exclusive to the US. 

Additionally, Catena Media group’s CEO Manuel Stan revealed that sweepstakes are the fastest growing vertical for the company and that he believes the business is “very well positioned to capitalise on that growth” in the sector.

Speaking to investors, he said: “Our products are focused on growing the sweeps vertical. I think it’s two-fold. Right now, we see that generally overall in the industry as one of the fastest-growing verticals and we capitalise on it. But also, we position ourselves for post-regulation in the bigger states in the US, where we will be able to have built our databases around our brands to capitalise when the likes of California and Texas will be regulating.”

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