The Social and Promotional Games Association (SPGA) has issued a sharp rebuke to recent actions taken by the New York Attorney General, following the announcement that 26 sweepstakes casinos were ordered to cease operations in the state. While the AG’s office described these platforms as “illegal” and “dangerous,” the SPGA strongly disputes that characterization, calling it a misrepresentation of legitimate, legally compliant businesses.
In its official statement, the SPGA expressed disappointment with what it views as a sweeping and overly aggressive enforcement effort. The organization, which represents numerous sweepstakes-based gaming platforms, emphasized that its members operate under a “well-established legal framework,” pay appropriate taxes, and follow a strict code of conduct that includes consumer protection measures and responsible gaming practices.
“Sweepstakes promotions are not gambling under federal law,” the statement reads, noting that such platforms are legally permitted in most U.S. states—including New York. The key distinction, according to the SPGA, is that these sites do not require purchases to participate and offer alternative methods of entry, placing them outside traditional gambling definitions.
Controversy and Criticism of Enforcement Approach
The controversy stems from a wave of enforcement led by New York Attorney General Letitia James, who argued that these platforms blur the line between legal promotional games and illegal gambling. The enforcement sweep resulted in cease-and-desist notices to operators offering slot-style and casino-themed games through sweepstakes models.
However, the SPGA believes the state has failed to differentiate between bad actors and compliant businesses. The organization highlighted its repeated, but unsuccessful, attempts to engage with lawmakers and regulators in New York to create clearer, more modern rules for digital sweepstakes promotions.
“Instead of working collaboratively,” the statement says, “the state has opted for overreach.”
The group warns that this type of blanket enforcement can have far-reaching effects—not only for operators, but also for consumers. Without careful regulation or open dialogue, compliant platforms may be forced out alongside unlicensed entities, reducing consumer choice and stifling industry innovation.
Call for Cooperation Amid Regulatory Uncertainty
This pushback from the SPGA brings attention to the broader legal gray area surrounding sweepstakes-based casino platforms, which rely on a dual-currency model that separates paid gameplay from the chance to win prizes. While operators argue this model keeps them in compliance with sweepstakes laws, regulators in some states, including New York, appear increasingly skeptical.
The enforcement action marks a turning point in how these platforms may be regulated going forward. But for the SPGA and its members, the message is clear: cooperation, not confrontation, is needed.
“It’s disappointing to see a blanket enforcement action taken without meaningful dialogue or effort to distinguish between compliant companies and truly illegal operators,” the SPGA concluded.
As New York’s legislative session approaches its end, and proposed bills aiming to ban online sweepstakes casinos remain in play, the gap between regulators and the industry continues to widen.
