A U.S.-based company with sweepstakes casino products has launched its first regulated, real-money product in Oregon.
KHK Games recently launched GiddyUp in 17 states after it received an advanced deposit wagering license from the Oregon Racing Commission. The product is not available in Oregon.
“We believe the U.S. gaming market is entering a new phase where speed, regulatory expertise, and proprietary tech matter more than ever,” KHK Games CEO Jon Kaplowitz said in a LinkedIn post announcing the launch.
GiddyUp offers real-money, parimutuel casino-style games tied to real horse racing results. According to its website, additional states might be added in the future.
States that can access GiddyUp:
- Alabama
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Kansas
- Louisiana
- Michigan
- North Dakota
- Nebraska
- New Mexico
- New York
- Oklahoma
- Rhode Island
- Wisconsin
- Wyoming
Crackdown on sweeps? Let’s go a different route
By using real racing results, sweepstakes casinos can better comply with legal gambling regulations.
KHK Games’ real-money product comes as state legislatures and regulators continue to crack down on operators that use “dual-currency models” to operate in gambling grey areas. Six states passed prohibition legislation last year, and, earlier this month, Indiana became the first to do so this year.
Regulators in multiple other states have sent hundreds of cease-and-desist letters to unregulated gambling operators, including sweepstakes operators like KHK Games.
KHK Games owns Clubs Poker, Clubs Casino
KHK Games also operates unregulated sweepstakes casino sites in the US, including Clubs Poker and Clubs Casino. Both sites allow players to use Sweeps Coins, the redeemable digital currency at the heart over the debate of the legality of sweeps gaming.
The Philadelphia-based company was a founding member of the Social & Promotional Games Association last year.
The products have come under regulatory scrutiny. Last year, the Maryland Lottery and Gaming Control Agency sent KHK Games a cease-and-desist order for Clubs Poker. KHK Games was also included in a set of 42 cease-and-desist letters sent by Louisiana regulators last year.
The company was also included in class action lawsuits filed against sweepstakes casinos last year in Utah, alleging the companies offer illegal gambling.
