SPGA: ‘Customer Control’ A Central Focus For Member Operators Moving Forward

"Expanding and refining consumer control will be a central focus" as the SPGA grows its code of conduct, a spokesperson told Sweepsy.

The Social and Promotional Games Association, formed in late 2024 to advocate the social and sweepstakes gaming industry, is focused on building upon its Member Code of Conduct. That code launched with four main tenets in December:

  • Age verification to ensure players are 18 and older
  • Identity verification
  • Location verification
  • Anti-money laundering policies

With those core pillars in place, moving forward, the SPGA has identified one of its key areas for growing its code of conduct.

“Expanding and refining consumer control will be a central focus as the SPGA continues to evolve its Member Code of Conduct,” an SPGA spokesperson told Sweepsy in a statement.

‘Robust ways to control their play’

This statement stemmed from a question regarding problem gambling helplines.

All regulated real-money online gambling sites — whether sports betting, casinos, or lottery — are required to list the number for a problem gambling helpline. Most often, you’ll find the number in the footer menu at the bottom of the site.

As they don’t face any regulation, sweepstakes gaming sites are not required to list any such phone numbers. The SPGA did not specifically respond to whether it would push for member operators to include problem gaming contact info directly on their sites.

Instead, the spokesperson wrote: “SPGA members provide consumers with robust ways to control their play.”

We see you, Stake.us and Crown Coins

Sweepsy checked 19 sweeps casino sites. Most site footers contained clickable links to responsible gameplay information, often including contact information for problem gaming resources like Computer Gaming Addicts Anonymous or Gaming Addicts Anonymous. (Credit Crown Coins for having a big, bright yellow button directing players to these resources.) 

None of the 19 sites had any helpline phone number listed visually on their homepage.

One, though, did provide an email address for those seeking help: Stake.us.

“Stake is committed to responsible social play, for more information visit Gamingaddictsanonymous.org,” a section of the Stake.us footer reads.

What better time to promote safe gameplay?

Now is a critical time for the SPGA, and, really, the sweepstakes industry as a whole.

The start of legislative sessions around the country has brought about a handful of bills involving sweeps operators — and most of them are positioned against the operators.

Connecticut, Maryland, and Mississippi are considering bills that would ban sweeps sites, and New York is considering a bill that would effectively prevent them from entering an iGaming market, should that be legalized.

West Virginia’s attorney general is taking legal action against sweeps operators. Arizona’s gaming regulator issued a PSA warning residents about sweeps sites. Michigan, Delaware, and Washington have all also sent cease-and-desist letters to sweeps operators.

New Jersey, meanwhile, is considering a bill that would regulate and legitimize sweeps gaming sites.

With so much legal discussion surrounding the sweepstakes gaming industry, both in state legislatures and courthouses across the country, it behooves sweeps operators to promote responsible gameplay as much as humanly possible. Lawmakers need to be convinced sweeps sites, and their dual-currency model, are safe.

So it’s no surprise the SPGA is focused on “consumer control” as it fleshes out the framework and backbone of its code of conduct. The SPGA does not have regulatory control over its member operators. So it can’t legally force them to do anything. But boasting a strict set of guidelines it requires member operators to adhere to is meaningful.

At the same time, the SPGA is working to spread awareness of how sweepstakes players differentiate from real-money players.

“Social sweeps is a free-to-play product, and the vast majority of players never make a purchase,” the SPGA spokesperson told Sweepsy. “For the consumers who do, the typical purchase size is a few dollars. The social sweeps product is fundamentally different than traditional real-money online casinos.”

According to an SPGA fact sheet, roughly 2/3 of players at “a typical SPGA member site” play only the free version of the games.

Inside The Connecticut Sweeps Ban Bill — And Its Chances Of Passing

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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Connecticut has been historically tough on sweepstakes gaming. That's just one reason the state's new bill outlawing sweeps sites has a good chance of passing.

Connecticut is adding more fuel to its anti-sweepstakes fire with a recent filing of a bill that would explicitly outlaw and criminalize online sweepstakes casino operators. It would also bar the use of lottery ticket courier services.

Senate Bill 1235 is not the first bill of its kind, but it could be a pivotal one for other states to follow for a number of reasons. 

Chances of passing

Wide legislative support and legal precedent give this particular bill solid chances of getting through. In contrast to a number of anti-sweeps bills in other states that were proposed by a single sponsor in one legislative chamber, SB1235 was introduced by the full Committee on General Law

The text introduction calls it: “An act concerning the Department of Consumer Protection’s recommendations regarding lottery and gaming regulation.”

The fact that the recommendations are coming straight from the state’s gaming regulator — the Department of Consumer Protection — is another strong indication that the bill’s contents have heavy support.  

Connecticut also, like many other states, has established sweepstakes laws that are admittedly outdated, written for a time when there was little worry about online sweepstakes gaming. And in 2024, the Department of Consumer Protection issued a cease-and-desist letter to VGW, which exited the state in response. 

For all these reasons, CT is unsurprisingly one of the most common states appearing on sweepstakes sites’ restricted states lists.  

Updating laws and upping the ante

The new bill would repeal and replace a number of existing sections in the general statutes with varying proposed effective dates. The sweepstakes update would be effective Oct. 1, 2025 if approved. 

The first two restrictions are already part of Connecticut law. The third is new:

“No person shall conduct or promote a sweepstakes or a promotional drawing authorized by the provisions of section 53-278g that (1) is not related to the bona fide sale of goods, services or property, [or] (2) uses a simulated gambling device, or (3) allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”

The first stipulation has been called into question for sweeps gaming operators, whether they are actually promoting a bona fide sale of goods or services with their sweepstakes promotions. But the arguments have proven murky, at best, on both sides, at least in the eyes of the law. The second part clearly targets devices that used to be found in internet sweepstakes cafes of old, or their modern counterparts. 

Part 3 leaves little up for interpretation on whether the online casino games or sports betting markets offered by sweepstakes gaming sites are allowed. It would outlaw any of those not approved and regulated by the Connecticut Department of Consumer Protection, the state’s gaming regulator. That equates to all sweeps sites currently serving customers in Connecticut.  

Violators are subject to the penalty for professional gambling as provided in subsection (b) of section 53-278b. Part of the amendment would raise that penalty from a class A misdemeanor to a class D felony.

The bill also designates that sites offering these outlawed games would be “deemed an unfair or deceptive trade practice.” As US gambling attorney Daniel Wallach pointed out on LinkedIn, that clause could give potential plaintiffs a much stronger case in pursuing civil remedies against violators. 

A potential blueprint for others

If this proposed bill does pass, it’s quite possible that other states will attempt to follow a similar template. After all, Connecticut has been quite effective in combating sweepstakes operators thus far. 

In addition to doing so in the name of consumer protection, the hard-nosed stance also supports regulated casinos and sportsbooks operating legally in the state’s regulated market. 

The state’s key gambling stakeholders, the Mashantucket Pequot Tribe, the Mohegan Tribe, and the Connecticut State Lottery, would likely celebrate a bill that helps to prevent the operation of sites that many view as competition to their businesses and profits. Which means it could also be a win for tax revenue for the state. 

Connecticut isn’t the only state searching for answers on the best approach to clarifying and updating their sweepstakes laws to make them more (or actually) enforceable. At least one lawmaker in Mississippi is attempting a similar approach of amending current anti-sweepstakes rules to explicitly name online sweeps gaming sites and raise the criminal penalties for violations. New York is another major state exploring legislative ways to codify anti-sweepstakes law. 

If this approach proves successful for Connecticut, we could see a number of other anti-sweepstakes states, especially those with strong tribal gaming presence, follow suit.

Arizona Gaming Regulator’s Warning Adds To Mounting Pressure On Sweeps Operators

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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Unless operators can prove a player's Gold Coin experience is the same as a Sweeps Coin experience, sweeps casinos may be in trouble in Arizona.

As legal scrutiny of sweepstakes casinos persists, more regulators and attorneys general are making moves against unregulated gaming sites in the name of consumer protection. 

Last week, during Identity Theft Awareness Week, the Arizona Department of Gaming (ADG) released a PSA to Arizona bettors urging them to take caution in online gaming activities, specifically calling out “illegal online casinos and sweepstakes platforms” which “present themselves as legitimate platforms.” In the release, the ADG also provided resources and tips for helping to keep online gaming in AZ safe and responsible. 

“By staying vigilant and informed, Arizonans can better protect themselves from fraud and identity theft,” the memo read. 

Sweeps may miss the mark on some requirements

Arizona offers legal and regulated online sports betting (and retail sports betting) as well as retail casino gambling, charitable raffles, and free-to-play games or contests (without using the term “sweepstakes” in AZ law). Due to confusion around what is and is not permitted, the ADG published new guidance around these free-to-play games. 

The updated guidance stipulates that legal free-to-play or “sweepstakes” games or contests must “allow participation for free, with no consideration or purchase of any type required.” 

This is a common requirement in U.S. sweepstakes law and most sweeps operators argue their sites fulfill the lack of consideration rule because players technically don’t have to purchase any currency (Gold Coins or Sweeps Coins) and can play 100% with currency they earn simply by logging in or winning games.

Some of the listed requirements, including the following, could get sticky for many sweepstakes casinos.

According to the ADG guidance, legal free-to-play or sweepstakes operators must also:

  • Provide participants the option to participate for free in the same manner, to the same extent, and with the same odds of winning, as someone who chooses to donate, willingly contribute consideration, or make a purchase. 
  • Not place any added requirements or limitations on free participation, such as extra forms, mailings, or limited entries, nor suggest or implement any restriction or disqualification on those not providing consideration, or purchasing products or services, from receiving notice or being allowed to participate in the game or contest or future games or contests.  

Is the GC experience the same as the SC experience?

The dual currency system that sweepstakes casinos employ gives customers the choice to play with virtual currency that carries no monetary value (aka Gold Coins) or with virtual coins that can be redeemed for real money prizes (i.e. Sweeps Coins). It would be tough to argue that those playing with Gold Coins without making a purchase are able to participate in the same manner as those opting to make purchases and play with Sweeps Coins. 

When you win enough Sweeps Coins to meet the minimum redemption requirement, you can redeem them for gift cards or real money.

You cannot do the same with Gold Coins. 

The “extra forms” or “mailings” mention also seems to run counter to the free mail-in sweeps mode of entry that so many sweepstakes gaming sites offer as a means of bypassing consideration. Operators let players get free Sweeps Coins if they mail in request letters.

AZ: We want to protect the vulnerable

The ADG’s memo comes in part as a response to a rise in bad actors and rampant advertising of illegal or scam sites. 

“With advertisements for online casinos and gaming platforms proliferating on social media, scammers are targeting unsuspecting individuals to steal personal information and financial assets,” the ADG memo read. 

One of the dangers that other state officials and gaming regulators have pointed out is the fact that it’s becoming harder than ever for consumers to distinguish between regulated and unregulated gaming sites. This is a major issue when unregulated sites do not offer the same customer safeguards and protections, thereby putting consumers at risk.  

“Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft and other serious risks,” the ADG said. “Due to their unregulated nature, the ADG is unable to resolve complaints and disputes arising from unregulated and illegal gaming sites, leaving victims with little to no chance of recovering lost funds.”

On the same day as the Arizona PSA, Casino Reports announced that West Virginia Attorney General JB McCuskey had sweepstakes casinos in his sights due to a similar worry around advertising to vulnerable populations: 

​​“We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations,” McCuskey told Casino Reports.

Expect more states to make moves to clarify their stance on sweepstakes casinos as the list has been growing by the week.

In just the last week or so, a prominent New York regulator expressed concerns over sweeps sites, a Mississippi lawmaker filed a bill to outlaw them, and Maryland sent cease-and-desist letters to six sweeps operators.

New Maryland Bill Would Ban Sweeps Casino Sites

Written By:   Author Thumbnail Valerie Cross
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Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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In just the past couple weeks, Maryland, New York, West Virginia, and Mississippi have all positioned themselves against sweepstakes casino sites.

A new bill entitled “Prohibition of online sweepstakes games and revenue from illegal markets” was filed this week in the Maryland State Senate by Sen. Paul Corderman. Senate Bill 860 would explicitly prohibit the operation or promotion of online sweepstakes games. 

It would also require the Maryland gaming regulator (the Maryland State Lottery and Gaming Control Agency) to deny and/or revoke licenses “under certain circumstances,” presumably circumstances pertaining to running or promoting online sweeps gaming sites.

The bill was referred to the Budget and Taxation Committee and has a potential effective date of July 1, 2025. One day later, a companion bill was filed in the House by Del. Eric Ebersole, Daniel Wallach reported via LinkedIn on Wednesday. HB1140 was referred to House Ways and Means Committee.

Maryland’s established anti-sweepstakes position

Maryland is one of a number of states so far in 2025 to take a hard stance against sweeps. The state gaming regulator announced in January it had sent cease-and-desist letters to 11 unauthorized gaming operators, including six sweepstakes sites.  

With a fresh iGaming bill on the table, the Maryland Senate recently held an online casino bill hearing. A number of the bill’s proponents explained to the committee that internet casino gambling was already available in the state, but on sites that are untaxed and unregulated. 

During the hearing, Shawn Fluharty, West Virginia Minority Whip and Head of Governmental Affairs at Play’n GO, demonstrated he was able to access and play sweepstakes casino games right from the Senate Office Building.

Many who spoke up during the hearing seemed to agree that the ongoing operation of a number of sites offering casino games in Maryland was problematic. These new bills look to address that aspect of concern, but takes things a step further.

Maryland SB860 would not only outlaw sweepstakes sites themselves, but also payment processors, gaming manufacturers, and even media affiliates (anyone holding a gaming license) from supporting or promoting such operations. The bill would also make violators guilty of a misdemeanor with potential penalties to include revoking of gaming licenses, up to three years imprisonment, and a fine up to $100,000.

A variety of answers to the sweeps question

Most recently, New York, Mississippi, West Virginia, and Arizona are all taking hard-nosed stances against sweeps gaming sites, or at least some legislators and attorneys general are

New York Sen. Joseph Addabbo is one of the first to write in a clause in a proposed iGaming bill to exclude any operator (AKA sweepstakes casinos) that had offered internet casino gaming to New Yorkers in the three years leading up to a bill passing.

Maryland is clearly aligning with the anti-sweeps side of the issue, which could prove beneficial in getting regulated iGaming passed in the next few years.

Report: West Virginia Attorney General Takes Aim At Sweeps Casinos

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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You can now add West Virginia to the list of states positioning themselves against sweepstakes casinos. Don't expect it to be the last.

West Virginia is reportedly the latest regulated iGaming state looking to take a stand against sweepstakes casinos.

Casino Reports on Wednesday published an unconfirmed report that West Virginia Attorney General JB McCuskey plans to either subpoena or send cease-and-desist letters to sweeps casinos operating within the state of West Virginia during his first month as AG.

With such action, West Virginia would join Michigan, Connecticut, and Delaware as the fourth regulated iGaming state to seek legal enforcement against social or sweeps gaming sites. What is different here is that the action is originating from the AG’s office, rather than the state’s gambling regulatory board, as is the case with the others on that list.  

AG: WV residents ‘being targeted by illegal gambling operators’

McCuskey confirmed his concern around the unregulated casino sites in a statement to Casino Reports:  

“We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations,” he said. 

“From day one, my priority has been to protect consumers and ensure our children are not being exposed to these operations or their advertising — while at the same time supporting those which are licensed and operating within the confines of the law.” 

Recent increased attention on sweepstakes operators has made them more difficult for legislators and regulators to ignore. The standing of social and sweepstakes casinos has increasingly been called into question, but ultimately, it’s up to each state to address their stance on sweeps gaming sites — or choose not to do so. Lately, more states are opting for the former, but with varying approaches. 

The legislation approach against sweeps

A few states so far are looking to address sweepstakes gaming directly through legislation. 

A legislator in New Jersey recently proposed a bill that would provide a path for sweepstakes operators to be licensed and regulated within the state’s existing iGaming market. 

Meanwhile, New York Sen. Joseph Addabbo aims to exclude sweeps operators by way of a provision in his filed iGaming bill. That provision bans any operator that has provided internet casino games to players in New York in the three years leading up to the bill passing. The chairman of the NY State Gaming Commission also recently shared a concern around social gaming sites.

“I have serious concern that there are operators conducting business inside our state that are running afoul of New York’s penal restrictions on unlawful gambling,” O’Dwyer said this week during a NYSGC meeting. “I have discussed with our staff. It is my understanding that staff have made several referrals to law enforcement and is assisting in case development.”

Mississippi also just proposed an amendment to expand the definition of unregulated sweepstakes gambling to include online platforms, and to increase criminal penalties for promoting or operating them.

It appears West Virginia will join the growing list of sites taking the cease-and-desist approach, which also likely serves as a warning to other sweeps operators. 

States to take that approach so far include regulated gaming states Michigan, Connecticut, and Delaware, as well as Massachusetts and the latest addition, Maryland

Whatever the path, expect more states to address their stance on sweepstakes sites going forward as industry pressure continues to mount.

NY Regulator Has ‘Serious Concern’ Sweeps Casinos ‘Are Running Afoul’ Of State Law

Recent comments from the New York State Gaming Commission indicate that social gaming and sweepstakes casinos will face punishment for operating without state regulation.

Sweepstakes casinos are in the crosshairs of New York lawmakers and regulators, as evidenced by a comment from Brian O’Dwyer this week.

During the most recent meeting of the New York State Gaming Commission, O’Dwyer — the commission’s chair — voiced his concern surrounding the proliferation of “social gaming,” as he put it.

“I have serious concern that there are operators conducting business inside our state that are running afoul of New York’s penal restrictions on unlawful gambling,” O’Dwyer said toward the end of the meeting. “I have discussed with our staff. It is my understanding that staff have made several referrals to law enforcement and is assisting in case development.”

‘Uptick’ in social gaming could lead to state action

O’Dwyer said he has “noticed an uptick in an activity that is generally referred to as ‘social gaming,'” adding that many residents in New York have likely seen ads for the activity on television.

On these sites, O’Dwyer said, individuals are encouraged to participate in “gambling or gambling-related games … using non-value virtual currency.”

“In my limited interactions with the activity, several operators seem to be skirting the law, or quite possibly violating the law,” O’Dwyer added.

Some sweepstakes casinos allow patrons to buy more gaming tokens once they run out. Other sites, the chairman said, offer the option to “use a secondary market” to exchange virtual chips or even “transfer their entire account for something of value.”

O’Dwyer continued with some assurance for the NYSGC and the public: If this type of activity continues and is found to be in violation of state law, “we will do everything possible to assure that that law is protected and respected.”

The NYSGC chair noted that he will provide more details regarding potential punishment, then concluded: “It is serious and it’s getting far more serious.”

SPGA issues statement in response

The Social and Promotional Games Association (SPGA), composed of many of the biggest names in the social gaming and sweepstakes casino industry, released a statement following the conclusion of the NYSGC meeting. The SPGA labels itself as “an organization dedicated to providing stakeholder education and advocating for the responsible operation of social games offering promotional sweepstakes prizes.”

“Social casinos with sweepstakes prizing are a safe and legal form of entertainment enjoyed by millions of Americans,” the statement read. “The practice of utilizing a prize-based sweepstakes as a promotional tool to incentivize consumers is a well-established one in most states.

“Like social games such as Zynga and Candy Crush, the vast majority of social sweepstakes players play for free, with no purchase necessary. Some players choose to pay to enhance their experience, but the amount of money they spend is very low, typically $1 or $2. Most players never spend money.”

Proposed Senate bill targets ‘unregulated’ sweeps casinos

Earlier this month, Sen. Joseph Addabbo Jr. once again introduced a bill to legalize online casinos in New York.

Within the text, the bill emphasizes that any unlicensed and unregulated entity offering gambling-related games within three years of the bill’s effective date would not be eligible to obtain an iGaming license in the Empire State.

Appearing on the City and State podcast, Addabbo pointed out a loophole — a dual-currency system used by sweeps casinos that allows players to purchase Gold Coins packages and simultaneously receive “bonus” or “free” Sweeps Coins, which players can redeem for real money. These platforms don’t technically require a deposit to play, allowing them to continue operations in most states under sweepstakes law.

Addabbo said he looks to ban those sweeps casinos in New York while also shining a light on legal and regulated iGaming “as a safe, effective alternative for online casino enthusiasts.”

Mississippi Becomes First State To Propose Bill To Ban Internet Sweeps Casinos

Written By:   Author Thumbnail Valerie Cross
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Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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The introduction of Senate Bill 2510 in Mississippi is just the latest in a continuous trend of states considering bans or some sort of legal action against sweepstakes casinos.

A new bill introduced in the Mississippi state legislature seeks to expand current gambling prohibitions to include online sweepstakes casinos. 

The proposed amendment, Senate Bill 2510, “appears to be the first bill filed at the state level to expressly prohibit sweepstakes platforms offering casino games,” as first reported via LinkedIn by Steven DiMasi, Senior VP of Global Government Affairs and Business Development at Light & Wonder.

Sponsored by Republican Senator Joey Fillingane, the amendment would also raise the criminal penalty for operating illegal gaming operations from a misdemeanor to a felony. 

Mississippi joins New York and New Jersey as the other two states attempting to take a legislative approach to explicitly dealing with online sweepstakes operators during this legislative cycle. It’s possible other states will follow their lead.

Expanded definitions of unlawful gambling to encompass sweeps gaming

While Mississippi state law already prohibits electronic sweepstakes devices and establishments, the new bill would expressly include the online versions and raise the potential punishment on any convicted operator. 

One provision in the bill states that it intends “to clarify that the operation of ‘internet sweepstakes cafes’ and ‘online sweepstakes casinos’ are illegal gambling activities under state law.” 

Other proposed wording adjustments like adding “or online or mobile platform” all work to expand current Mississippi state law to include internet sweepstakes operators and online casino game providers.

It also raises the stakes for violators. As stated in the bill, upon conviction, any person or entity promoting or operating an internet sweepstakes cafe or casino would be subject to:

  • A felony conviction
  • A fine up to $100,000 or up to 10 years in prison, or both
  • Forfeiture of assets, rights, and privileges used in connection with violations of the provision

For the thousands of players who participate in social and sweepstakes gaming in the U.S., it’s becoming increasingly important to pay attention to state regulations around these sites. 

Most if not all sweeps casinos already explicitly restrict players from Idaho, Washington, and Michigan. Many also include Nevada, Wyoming, and/or Connecticut on that list. Sweeps operators have also received cease-and-desist letters in states such as Delaware and Maryland — and it sounds like West Virginia will soon join that list.

Based on recent anti-sweeps sentiments and actions, we can also expect Massachusetts, New York, and now Mississippi (and more, eventually) to join at least some of those restricted states lists. 

For sweeps players, this is important because a number of social and sweeps sites include some language in their terms and conditions declaring that it is the player’s responsibility to abide by such restrictions

Hence, if a player were to violate the policy and play from, say, Michigan, that player’s funds (or prizes) could be confiscated and their account would be subject to closure. It would then be highly unlikely for them to be able to recover funds, especially with no sweeps gaming regulator in the state to appeal to. 

How Maryland’s Anti-Sweepstakes Stance Plays Into iGaming Bill Discussions

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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This move by Maryland’s regulator is significant as it both clarifies their position on sweeps operators in the state, and establishes the gaming regulator as the key enforcer of the state's anti-sweeps stance. 

Maryland recently joined a growing list of states establishing an anti-sweepstakes gaming stance in a public manner. The Maryland Lottery and Gaming Control Agency reported during its Jan. 15 meeting that it had sent cease-and-desist letters to 11 unauthorized gaming sites serving Maryland customers. 

Among the recipients were six sweeps casino and/or sports betting operators, first reported by industry consultant Dustin Gouker via LinkedIn. Those operators are:

  • Golden Hearts
  • Zula
  • McLuck
  • REBET
  • Fortune Coins
  • StakeUS

The action removes any ambiguity that existed as to where Maryland stands on the sweepstakes operator question, and it comes just in time for renewed legislative discussions around regulating iGaming in the state. 

Significance of Maryland joining the growing list of cease-and-desisters

Michigan, Connecticut, Massachusetts, Delaware, and now Maryland have all sent cease-and-desist letters to at least some sweepstakes gaming operators. All of these letters have come from the state’s authorized gaming regulator.

To date, these typically result in the targeted operators eventually pulling out of the market and adding them to their list of states they do not serve (in their terms and conditions). 

Part of the reason social and sweeps gaming sites have enjoyed such unabated growth in the U.S. in the past decade is a lack of clarity on what state agency’s jurisdiction they fall under. This is true especially in states that don’t have gaming boards which regulate online casinos.

This move by Maryland’s regulator is significant as it both clarifies their position on sweeps operators in the state, and establishes the gaming regulator as the key enforcer of the state’s anti-sweeps stance. 

Maryland also trying to pass regulated iGaming bill

Maryland is one of eight states so far (and counting) to introduce bills that would authorize and regulate iGaming in their state. Last year’s efforts gained a fair amount of traction and support, but couldn’t overpower key opposition from two regional casino operators, Cordish Companies and Churchill Downs, and associated employee unions. 

There was also a need for ramped up educational efforts around the subject, Maryland State Senator Ron Watson later pointed out at last summer’s meeting of the National Council of Legislators from Gaming States

Similar to last year, separate iGaming bills have been introduced in the House and Senate, by Del. Vanessa Atterbeary and Sen. Ron Watson, respectively. The bills are quite similar, with both requiring a constitutional change by voter referendum that could happen as early as 2026 if passed. They both also have requirements aimed to counter brick-and-mortar job loss fears, which dominated a number of the online casino hearings last time around.  

HB 17 and SB 340 include an in-state live dealer studio requirement with a minimum of $5 million investment. They also require up to $10 million from iGaming proceeds in the first 12 months with regulated online casinos to go to the Video Lottery Facility Employee Displacement Fund to support any employees who lose jobs due to the implementation of iGaming.  

Could anti-sweeps stance help Maryland pass iGaming legislation?

In addition to job-related guarantees, Maryland’s clear stance against sweepstakes operators could also help persuade regulated iGaming opponents. 

One would think that the state regulator’s promise of cracking down on unregulated internet casinos would be a welcome good faith measure for the two casino companies in Maryland that opposed legislation last year. 

Regardless, the rising awareness of the tax revenue that states are missing out on from sweepstakes operators in addition to discussions around a lack of regulatory oversight could work in favor of iGaming legislation going forward. 

Whether the sweeps topic or any of the other assurances are enough to tip the scales in support of passing a Maryland iGaming bill this year remains to be seen with initial hearings getting underway in the coming weeks. 

Gaming Innovation Group Launches Turnkey Sweeps Casino Platform With Gold Rush City

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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Time will tell if Gold Rush City can compete in a crowded sweepstakes market. But it certainly looks the part.

Gaming Innovation Group (GiG) officially debuted its sweepstakes casino platform SweepX on Monday with the launch of new site Gold Rush City in partnership with sweeps operator Primero. The move marks the first social sweepstakes vertical entry for the B2B provider of iGaming, sportsbook, and AI services.  

According to the press release, the SweepX platform integrates GiG’s proven international iGaming platform “with a custom-built sweepstakes front-end, an AI-enhanced gamification layer, and one of the largest sweepstakes casino content libraries in the industry.”  

SweepX and Gold Rush City sweeps site

SweepX is a comprehensive turn-key solution that can significantly expedite speed to market for new sweepstakes operators that partner with the platform. The press release said the product is intended to drive growth and boost player engagement on sweeps gaming sites. Features include:

  • Dual-wallet system
  • Prize-redemption management
  • GiG’s advanced AI-assisted content management technology

A first look at the site reveals Gold Rush City has a look and feel similar to other social sweeps sites but stands out with exceptional visuals and game graphics. It launched with dozens of games, mostly of the slot variety, including 11 exclusive games and 12 Slingo varieties.

Barry Rutherford, Chief Executive Officer at Primero, said in the press release: 

“GiG’s world-class platform provides us with the ability to deliver a richer variety of content and an unrivaled player experience. Its flexibility and innovation ensure that we can adapt to the ever-evolving demands of the market while offering seamless performance and engagement for our players. By combining GiG’s cutting-edge technology with our unique and highly effective player acquisition strategy, we’re setting a new benchmark for excellence in the US market.”

Time will tell if the site is able to deliver a product and experience that stands out in a heavily saturated sweepstakes gaming market with many dozens of sites operating in various U.S. states. But, at least for now, Gold Rush City certainly looks the part of a quality option among sweeps platforms.

Joining a sweeps market under the industry’s microscope

As a reputable B2B provider for regulated iGaming sites, GiG’s entry into the sweeps industry demonstrates faith in continued growth for the sector. Richard Carter, Chief Executive Officer at GiG, said in a press release:

“The launch of SweepX marks a pivotal leap forward for GiG, strategically leveraging our pioneering technology within online social casino gaming and positioning us with a leading position in the market. The overwhelmingly positive reaction to SweepX since its announcement in May this year has strengthened our belief in its potential to revolutionise the Social Sweepstakes Casino market, with an emphasis on providing the most entertaining and safe environments for players and operators alike, further fueling our ambitious strategic plans for growth.”

It’s interesting timing as the sweepstakes gaming model has come under fire in recent months by a number of state gaming boards in addition to civil lawsuits. Additionally, the AGA has called for more states to examine the legality of sweepstakes gaming sites.

The news also comes less than a week after a New Jersey legislator filed a bill to incorporate social sweeps casinos into the state’s existing regulated online casino market. If that bill passes, it could work to help legitimize sweeps casinos and ensure they’re held to the same standards as regulated iGaming sites are in the seven states where real-money online casinos operate.

GiG’s turnkey sweeps gaming platform would be in prime position to provide more sites with the high quality online gaming technology they are accustomed to delivering in regulated iGaming markets.

Do The Maryland And Virginia iGaming Bills Stand A Chance?

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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Maryland is the frontrunner now in its second year with iGaming legislation on the table. Virginia has a chance too, following on recent momentum around casino gambling in the state. 

Two states start the 2025 legislative session with pre-filed iGaming bills, but how likely are Maryland and Virginia to push them through?

Maryland is the frontrunner now in its second year with iGaming legislation on the table. Virginia has a chance too, following on recent momentum around casino gambling in the state. 

The fact that online casino bills were pre-filed ahead of this year’s legislative session that began Jan. 8 is a strong sign for getting bills through in both states, at least eventually. Key opposition, however, could come from two land-based gaming operators, only one of which operates in both states. 

If either Maryland or Virginia does beat the odds and join the seven U.S. states with regulated online casinos, it could also shift the sweepstakes gaming landscape

Take Two for Maryland iGaming Bill 

Maryland was home to the strongest momentum for an online casino bill in 2024. After Del. Vanessa Atterbeary’s House Bill 1319 passed the House by a vote of 92-43, it died in the Senate. Meanwhile, Sen. Ron Watson introduced a separate online casino bill in the Senate, which got a hearing in the Senate Budget and Taxation Committee before ultimately stalling out. 

Hearings in both chambers revealed strong opinions on both sides of the issue. Despite the failed attempts, it’s possible that last year’s lessons and support from key lawmakers and casino operators could give the new Maryland iGaming bill more legs to cross the finish line in 2025 and land on the 2026 voters’ ballot. 

Details of 2025 Maryland Online Casino bill 

Atterbeary is the chair of the Ways and Means Committee where a new iGaming bill now resides. HB 17 is similar in detail to last year’s iGaming House Bill. Key details include:

  • Maryland State Lottery and Gaming Control Commission to regulate and assign licenses
  • Eligible licensees are video lottery operators and holders of sports wagering facility license
  • Licensees must commit to invest at least $5 million in an in-state live gaming studio during the initial license term
  • 5 additional licenses available through two competitive rounds 
  • Video lottery operators can attain an additional license by partnering with a “social equity applicant” with at least 33% ownership

Virginia joins the fray

Virginia will have a run at passing iGaming legislation this year too after Sen. Mamie Locke pre-filed an online casino bill that was referred to the Committee on General Laws and Technology. Proposed VA online casino details:

  • Regulator: Virginia Lottery Board
  • Licensees: Five retail casino operators in VA (only three currently open); Up to three skins each
  • Application fee: $1 million
  • Tax on revenue: 15%; 97.5% to the general fund and 2.5% to responsible gambling support

Heavy support but key opposition in Maryland

While most big casino brands support iGaming bill legislation, there are two key casino players fighting iGaming legislative efforts. In Maryland, Churchill Downs, owner of Ocean Downs Casino in Worcester County, and Maryland Live! owner Cordish Companies spoke in opposition to iGaming legislation during 2024 hearings. 

Both regional casino operators are clinging to the argument that online casinos do more to cannibalize retail operations than to lift them up, despite overwhelming evidence to the contrary. Likewise, there is evidence against iGaming leading to retail job loss, but those fears also worked against legislative efforts last session. 

Time will tell if the Maryland iGaming bill’s requirement for investment in live dealer studios in-state will help to alleviate some of those fears. Meanwhile, support for regulated iGaming has come from operators behind Maryland casinos MGM National Harbor, Horseshoe Baltimore, Hollywood Casino Perryville, and Rocky Gap Casino.

Chances in Virginia

In VA, the entities proposed to receive an iGaming license include the five approved land-based gaming operators: Caesars Entertainment, Boyd Gaming, Hard Rock International, Rush Street Interactive, and Cordish Companies. The first four gaming companies listed there have expressed favor for iGaming and have reaped financial benefits of adding online casinos to brick-and-mortar gaming facilities in states like Pennsylvania, New Jersey, and Michigan. 

However, forthcoming Petersburg Casino operator Cordish Companies is likely to launch a counter-campaign similar to its efforts to stop iGaming legislation from passing in Maryland. A big question there will be whether the support for the bill is enough to outweigh Cordish and any other opponents to get a bill through to voters. If history is any indication, it could take more than one crack.   

What sweepstakes operators stand to lose

One potential impact if MD or VA were to pass iGaming bills this year would be on the online gambling sites already operating in the state. These include dozens of sweepstakes casinos as well as offshore black market gaming sites that remain unregulated by gaming boards in the U.S. 

Based on precedent, gaming boards in states with legal iGaming are more likely to invest effort and resources to exclude such sites from operating within their state borders. Three states, Michigan, Connecticut, and Delaware, sent cease-and-desist letters to sweepstakes gaming companies and/or offshore operators in 2024. All three are among the seven legal iGaming states in the U.S. Michigan is also one of a handful of states to explicitly outlaw sweeps sites.  

The Maryland Lottery and Gaming Board reported at their Jan. 15 meeting they have sent ceast-and-desist letters to 11 illegal gambling operators including a number of sweeps sites.

If either Maryland or Virginia tips the scales to get an iGaming bill passed through the legislature in 2025, expect the regulatory environment to shift further out of favor of sweepstakes casinos in those states. Our state-by-state page will continue to monitor these updates.

Other gaming-friendly states likely to at least discuss iGaming bills in the current session include Illinois, Louisiana, New York, Indiana, and Ohio.

Are Celebrity Endorsements Of Sweeps Casinos Here To Stay?

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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Major celebrities are endorsing sweeps and social operators including Paris Hilton, Drake, DK Khaled and NBA stars, Paul George and Karl-Anthony Towns.

From Michael Phelps to Paris Hilton, the list of athletes and celebrities endorsing social and sweepstakes gaming sites is growing. And it seems to be working out well for the brands, especially Virtual Gaming Worlds (VGW).

A financial report for VGW, parent company of Chumba Casino, LuckyLand Slots, and Global Poker, reported marketing spend of $275 million in 2024, up from $237 million the previous year. The aggressive marketing appears to be paying off, with the company reporting just over $4 billion in revenue in 2024, around a 30% YoY increase on the $3.1 billion revenue in 2023. 

Celebrity endorsements are traditionally a powerful marketing tool to help lend credibility to a product and drive demand and revenue. The social gaming sites are no different in that respect. While some regulated gaming industry stakeholders are taking issue with this practice, it hasn’t stopped the trend from picking up steam in the last few years. 

Details of the partnerships 

The recent trend has seen a number of heavy hitters in the social gaming space land some big fish for endorsement deals.

Last fall, VGW announced a partnership with world champion Olympic swimmer Michael Phelps to star in their Global Poker 2023 Celebrity Challenge marketing campaign. Joining Phelps in that campaign for heads-up poker matches and various advertisements were DJ Khaled and NBA stars Paul George and Karl-Anthony Towns

In August 2024, VGW announced an expanded partnership with Phelps, who has become the main celebrity face of the Global Poker brand. The sweeps operator promised at that time “a range of new and exciting marketing initiatives” around the most-decorated Olympian of all time.

VGW has since expanded the Celebrity Challenge campaign to include initiatives around Formula 1 racing events like the Las Vegas Grand Prix and other major races. Ahead of the Grand Prix F1 race in Austin, Texas, French driver Charles Leclerc of Scuderia Ferrari appeared in a campaign called “Raise your game” that highlighted connections between racing and poker.  

The site held its own Grand Prix Turbo Series: Las Vegas Edition, and even debuted a “Global Poker Table Talk” special featuring heads-up poker matches involving Phelps, Scuderia Ferrari drivers Leclerc and Carlos Sainz, and three-time WSOP bracelet winner Antonio Esfandiari

Mats Johnson, Chief Marketing Officer at VGW, said in a press release:

“Mr. Phelps is not only an exceptional athlete and poker player, but he brings this great energy and aligns with the Global Poker brand incredibly well. He already has a strong following and we expect this partnership to add to that to truly take the Global Poker brand from strength to strength.”

Other major celebrity deals with social casinos

For their Chumba Casino product, VGW has enlisted popular TV host Ryan Seacrest to promote social gameplay. The following is an example of a promo that appeared on Seacrest’s personal IG account in September:

Ryan Seacrest among top celebrities endorsing social casinos

One more game of @chumba.casino and then we’ll go for a walk, Georgia #ad

Sponsored by Chumba Casino.
No Purchase Necessary.
VGW Group. Void where prohibited by law. See T&Cs. 18+ 

Another major sweeps casino brand, WOW Vegas, enlisted Paris Hilton as a celebrity ambassador. She began promoting the casino powered by MW Services Limited on Instagram in Feb. 2024: “WOW Vegas is totally slaying with hundreds of amazing slot games! Join me today on WOW Vegas and start #sliving the Vegas life.” 

 
 
 
 
 
View this post on Instagram
 
 
 
 
 
 
 
 
 
 
 

A post shared by Paris Hilton (@parishilton)

Campaign critics 

Celebrity endorsement deals for products, including in the gaming industry, are nothing new. But some regulated gaming professionals have criticized such partnerships and more generally, the way in which the products are being marketed. 

At a recent gaming legislators conference, NCLGS, two vocal opponents of sweepstakes gaming, Tres York and Howard Glaser, denounced some of the tactics used in sweeps casino advertising.

Additionally, a number of lawsuits have been levied against specific sweeps gaming operators. One such class action lawsuit filed in Georgia accused VGW of promoting a form of illegal gambling through targeted ads and celebrity endorsements “to create a veneer of legitimacy – exactly like famous illegal gambling sites Full Tilt Poker and PokerStars used to do before those sites were shut down in the United States.” 

As long as the legal grounds for social and sweepstakes gaming remain in question, it’s hard to imagine any of these deals being outlawed by a legislative or enforcement agency. 

That said, as a recent Daily Mail article pointed out, the endorsements of social gaming sites by professional athletes, especially those in the NBA, could pose an issue that league officials may take action to halt. Considering the NBA partners with regulated sports gambling sites FanDuel and DraftKings, it’s possible the league could decide to limit player advertising of gaming sites that don’t fall into the regulated gambling industry category.  

SPGA Introduces Code of Conduct for Members

Written By:   Author Thumbnail Geoff Fisk
Author Thumbnail Geoff Fisk
Geoff Fisk is a writer, analyst, and SEO specialist working in the U.S. iGaming industry. Geoff began his career as a sports journalist in Southern California, covering high school and college sports, as well as minor le...
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The Social and Promotional Gaming Association (SPGA), which includes many of the biggest brands in the US social gaming and sweepstakes casino industry, has announced a code of conduct for all members.

The SPGA describes itself as “an organization dedicated to providing stakeholder education and advocating for the responsible operation of social games offering promotional sweepstakes prizes.” 

The core concepts of the SPGA code of conduct include:

  • Age verification to limit purchases to users 18 and older
  • Proper identity verification (Know Your Customer or KYC
  • Location verification of customers 
  • AML (Anti-Money Laundering)  policies to ensure proper transaction monitoring

Members already in compliance with code of conduct

Camilla Wright, a spokesperson for the SPGA, said that the code’s foundational pillars highlight standards already in place at the most reputable sweepstakes casinos.

“The pillars of the SPGA Code of Conduct highlight the technology and processes already in place at most social sweeps operators to ensure that the millions of adults who enjoy these games do so in a safe and reliable environment,” Wright said. “The standards of the Code of Conduct go above and beyond the accepted best practices for traditional social casinos.”

The SPGA describes its membership group with the following language:

“SPGA Members are online social and promotional platforms that offer legal social and promotional games to authorized customers across the states within the U.S. Membership is limited to companies with U.S.-facing social and promotional gaming platforms that have a thorough analysis which supports their legal and regulatory compliance.”

The SPGA formed in September 2024 with ten members:

  • 10 Ten Gaming
  • Blazesoft
  • Fliff
  • FSG Digital
  • Gold Coin Group
  • High 5 Entertainment
  • KHK Games
  • Kickr Games
  • Octacom
  • Rolling Riches
  • Woopla Gaming

Next steps: creating an external firm and certification for members

The pillars of the Code of Conduct are standard protocols among most (if not all) of the social and sweepstakes gaming platforms operated by SPGA group members.

The SPGA announced that it plans to add to the code of conduct in the coming months, continuing to define best standards and practices for its members. The group also plans to create an external firm to certify member compliance with the code.

“We look forward to continuing to develop the Code of Conduct to further strengthen the commitment of SPGA members to compliance and player protection while providing consumers with a highly social and engaging experience that is always free to play,” Wright said.”

Louisiana Legislators Discuss Online Casino Legalization

Written By:   Author Thumbnail Geoff Fisk
Author Thumbnail Geoff Fisk
Geoff Fisk is a writer, analyst, and SEO specialist working in the U.S. iGaming industry. Geoff began his career as a sports journalist in Southern California, covering high school and college sports, as well as minor le...
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Louisiana's State Senator, Kirk Talbot is concerned about the number of U.S. players playing at offshore online casinos

Will Louisiana be the next state to launch iGaming? An ongoing discussion on the topic took another step last week in the Louisiana State Senate, as the Senate Judiciary B and Revenue and Fiscal Affairs Committee conducted a hearing on iGaming legalization.

The three-hour meeting featured opinions both for and against the prospect of the launch of an online casino industry in Louisiana. 

Offshore presents a tax loss for Louisiana

Those in favor of iGaming legalization pointed out the potential tax revenue the state stands to reap from regulated online casinos. State Senator Kirk Talbot, who initiated the discussion on iGaming legalization in the previous Louisana Senate session, pointed out the issue of U.S. players playing at offshore online casinos and sending untaxed revenue to illegal gambling operations. 

“I know several states have legalized internet gaming, cracked down on illegal gaming, and it’s generated an enormous amount of tax dollars,” Talbot said. 

Rep. Mike Echols brought up an American Gaming Association Study that estimates Louisana players spending $4.6 billion at illegal offshore casinos each year.

Howard Glaser, the Global Head of Government Affairs and Legislative Counsel at gaming manufacturer Light & Wonder, also cited the AMA study, arguing that offshore casinos siphon potential tax revenue from the state and expose players to the dangers of playing at unregulated gambling sites.

“There are well-documented connections between illegal online gaming taking place in the state and the money that comes from it for money laundering, for drug trafficking, and for organized crime,” Glaser said.

“These are some of the reasons that states consider regulating online casino gaming to protect consumers, combat transnational crime, and capture tax revenue.”

Glaser also referenced a Vixio Regulatory Intelligence study that projected that Louisiana online casinos could produce $763 million in annual revenue. If taxed at 15% (the tax rate on land-based casino slot revenue in the state), that revenue would bring $114 million in annual tax revenue for Louisiana.

The Sports Betting Alliance (DraftKings, FanDuel, BetMGM and Fanatics), Caesars Entertainment, and Boyd Gaming all sent representation to the hearing in support of Louisiana iGaming legalization. 

Opponents of iGaming cite responsible gaming, cannibalization

Louisiana is home to more than 25 land-based casinos, including riverboat casinos, racinos, and Native American casinos. Caesars Entertainment and Boyd Gaming own eight of those casinos combined, and both companies advocate for online casino legalization in the Pelican State.

The Cordish Companies also owns a piece of the land-based casino economy in Louisiana, including an upcoming $270 million project that’s slated to open in 2025 (Live! Casino & Hotel Casino in Bossier). 

Mark Stewart, General Counsel for The Cordish Companies, pushed against iGaming legalization at the hearing.

“Over $700 million has been invested or committed to move casinos on shore, bringing tremendous economic benefits to Louisiana,” Stewart said. “But we submit that bringing iGaming to Louisiana would pull the rug out from under these projects and discourage additional land-based investments.”

Stewart also contended that iGaming legalization could cannibalize land-based casino revenue. Stewart pointed to a Deutsche Bank study that found an 11.7% decline in brick-and-mortar casino revenue in three states with legal online casinos, compared to a 17.7% gain in revenue in six states without iGaming.

Stewart’s argument against iGaming legalization also brought up potential responsible gaming pitfalls. He dubbed online casinos as “gambling fentanyl” and said that gambling helpline calls have increased 335% since online sports betting went live in the state at the beginning of 2022.

Louisiana Gaming Control Board Chairman Chris Herbert also weighed in on the responsible gaming aspect of iGaming legalization.

“One thing to travel to a casino and game, but it’s another thing to do it from your couch,” Herbert said. “Those present real problems. As regulators, that is not lost on us.”

Other entities on hand at the hearing to oppose iGaming legalization included the Louisiana Video Gaming Association, the Louisiana Family Forum, and Cajun Bingo Supply.

What iGaming legalization could mean for the sweepstakes industry

With any potential iGaming launch likely still years away in Louisiana, sweepstakes casino sites offer an alternative for Louisiana players looking for casino-style gaming. 

Many sweepstakes casino operators already avoid Louisiana, as it appears on the list of restricted states for a number of the sweeps casinos. Louisiana players can still access some of the most popular sweepstakes casinos, however, and that likely won’t change even if regulated online casinos arrive in the state.

Only three states outright restrict sweepstakes casinos (Washington state, Idaho, and Michigan). Of these states, only Michigan hosts a regulated online casino industry.

In other states with legalized iGaming, sweepstakes casinos co-exist with regulated online casinos. In New Jersey, Pennsylvania, West Virginia, Connecticut, Rhode Island, and Delaware, players enjoy access to both sweepstakes casinos and regulated online casinos.

The Senate Judiciary B and Revenue and Fiscal Affairs Committee hearing on iGaming played out at the same time as the National Council of Legislators from Gaming States (NCLGS) winter meeting in New Orleans. 

Sweepstakes casinos were one of the most debated topics at the NCLGS meeting, as the popularity of the gaming format continues to skyrocket.

Setting up the Gold Coin Rush: Sweepstakes Swept the NCLGS Conference

Written By:   Author Thumbnail Valerie Cross
Author Thumbnail Valerie Cross
Valerie Cross, Ph.D., is a skilled editor, writer, and content strategist with over seven years in the iGaming, poker, and sports betting industry. She has led content teams, managed regional gambling sites, and covered ...
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The National Council of Legislators from Gaming States (NCLGS) conference placed a significant spotlight on sweepstakes casinos, highlighting the growing importance and controversy surrounding this sector of the gaming industry.

Sweepstakes casinos can’t seem to escape the iGaming news spotlight of late, and the subject took center stage during a dedicated panel at the recent National Council of Legislators from Gaming States (NCLGS) conference.

The “Committee on Casinos” panel description opener, “This ain’t your granddad’s sweepstakes,” proved to be a key reference for understanding today’s murky sweepstakes waters, how we got here, and possible developments for the industry in the coming years.

Sometimes to look forward, you have to look back, and that is the case with the rise of sweepstakes casinos in the U.S. 

Some of the confusion stems from the name itself, dating back some 50 years. Sweepstakes casinos of today are a far cry from the mail-in contests used as a marketing tactic for American Family Publishers (AFP) made famous by Ed McMahon delivering oversized checks to unsuspecting Americans.

Yet, the sweepstakes law under which AFP and other companies like Publishers Clearing House operated also provides the legal basis for today’s hotly debated sweepstakes gaming sites. 

Adding to the complexity is the fact that sweepstakes laws, gaming laws and enforcement agencies for both vary greatly from state to state.

During the panel, Bill Gantz (Trials, Gaming, and Intellectual Property Partner, Duane Morris) addressed the legal model for sweepstakes gaming sites and their predecessors: social casinos. It is impossible to understand the legal footing or legal arguments without going back to sweepstakes law in the U.S.  

According to Gantz, who by his own account “defends gaming companies from consumer litigation,” the premise of legality for all sweepstakes is that the entry is free. 

Enter the social gaming model. 

Social casinos operate on the “freemium” model, wherein there are no prizes involved because any purchases made are for points or virtual currency that has no monetary value. Gantz noted that freemium games are not subject to licensure and have been operating in the U.S. since 2012. Globally, this gaming segment drives revenue of $8 billion annually and is growing, according to a report from Research and Markets

Freemium games are a key to the whole conversation because most, if not all, sweepstakes gaming sites have a social gaming product baked in. That means you can play casino-like games in gold coin mode (or the equivalent, depending on the site). You can get those gold coins for free or for purchase, but even if you win more gold coins, you can not redeem them for real money. Gold coins are a virtual-only currency with no actual dollar value. 

But these sweepstakes casinos also have a sweeps coin mode (or equivalent), meaning they are offering two different products, as Gantz explains. And this is where the sweepstakes law comes in. 

“The premise for all of these operators is that you can use a sweepstakes as an incentive to market a product, service or brand, and that’s generally true in virtually every state. What is the product on this platform? It is, in fact, the gold coin games, the same ones that people play without sweepstakes, the same ones if they make a purchase – that is the bona fide product.” 

So how does this fit within sweepstakes laws, as written? According to Gantz, “There’s no purchase necessary to enter and win. People can, as I mentioned, play the gold coins if they want, and they can use the sweeps function if they want.”

Outdated sweepstakes laws to blame?

Howard Glaser is Global Head of Government Affairs and Legislative Counsel at Light & Wonder and a major industry opponent of sweepstakes casinos. While discussing the dual currency system, he referred to the model as a “shell game.” He said most of the sweepstakes sites allow customers to purchase gold coins packages and receive sweeps coins as a “bonus.” Players can then choose to play in gold coin or sweeps coin mode, and sweeps coins can eventually be redeemed for the same currency used to purchase the coins. 

Going back to sweepstakes law, a key component is the requirement of free entry (no purchase necessary) or alternate method of entry (AMOE). In the current sweepstakes gaming model, while you can purchase gold coins packages if you choose to do so, you are able to play the games without making a purchase, and some sites also offer a mail-in option for receiving virtual currencies on the site (hence, AMOE). 

Are these gaming sites what state legislatures had in mind when they created sweepstakes laws in the 1970s? Probably not. But the ambiguity in those laws are clearly at the root of the contentious conversations surrounding this multi-billion-dollar industry. 

“The thing about all the sweepstakes laws that exist is that the vast majority of states have no requirements on how to run a sweepstakes,” Gantz explains. “They don’t limit it to getting a bunch of entries and pulling a random winner out of a hat. That’s the old fashioned, physical type of sweepstakes that many of us in this room grew up with. But now we have all these types of games. There are all kinds of gamified sweepstakes that have nothing to do with pulling a random entry out of a hat.” 

“…I look at the laws. I look at the regulations. There’s not one state, as I mentioned, that limits the format to old fashioned types of sweepstakes.”

Where does this leave us?

The NCLGS sweepstakes panelists do seem to agree on one thing: Clarity around the law and regulations governing sweeps and online casinos is likely needed. 

Gantz put it succinctly: “If you want to regulate or prohibit, then you should change the law and change the regulations.”

Tres York, Senior Director of Government Affairs, American Gaming Association, said:

“Every state … has different laws, and so we strongly encourage gaming regulators and state attorneys general to look at these operations and make a determination one way or the other, as to whether they’re operating legally or illegally. And if they’re operating illegally, to take action against them.”

Glaser urged listeners to support regulators’ efforts. 

“They’re very sophisticated, the regulators – they’re not acting in a vacuum. They need to know they have political support, and your political support for them, encouraging them and giving them good feedback. Public feedback is important.”

Andromeda Morrison, General Counsel, Ohio Casino Control Commission, emphasized the importance of state gaming regulators working closely with legislators to address policy questions like underage access to gambling. According to Morrison, clear policy against unregulated gambling operations at the state level provides a foundation for regulators and the Ohio General Assembly to address products operating in the state that may not be compliant with state law and Ohio gambling law. She also advocated for open communication between regulators and operators to help ensure compliance and protection of consumers. 

Even on the sweepstakes operator side, the recently formed trade association for social and sweepstakes operators (SPGA) in its mission statement calls for clear regulations: 

“The Social and Promotional Games Association and its members are committed to protecting players, promoting responsible innovation, and advocating for clear regulations that allow the industry to flourish.”

Expect debates to continue into 2025 

Debates will likely continue around the legal standing of sweepstakes casinos into 2025 and beyond. 

While a limited number of states have taken actions against sweeps operators to date, there still seems to be widespread lack of clarity on just what governing or regulatory bodies these decisions fall to, depending on the state.

Three states so far have sent cease-and-desist letters to sweepstakes gaming operators. It’s likely not a coincidence that all three of those states offer regulated iGaming: Michigan, Connecticut, and Delaware. In Michigan and Delaware, those letters originated from the state’s gaming regulator. In Connecticut, it came from the Department of Consumer Protection. 

The only other U.S. states that have passed some form of regulated online casino legislation are New Jersey, Pennsylvania, West Virginia, and Rhode Island. A number of the NCLGS panelists mentioned the slow pace of iGaming legislation in the U.S. as a key catalyst for the accelerated proliferation of sweepstakes casinos over the last few years. And regardless of what side of the industry debate you’re on, there is no denying the appetite and demand for internet casino gambling options across the U.S. 

As gaming industry consultant Dustin Gouker noted in his newsletter following the NCLGS session, we head into 2025 with a lot of questions and uncertainty around the fate of the sweeps industry. 

“Some parts of the regulated gambling industry very much want sweeps to go away. However, the delta between that desire and the actual will and logistics to make that happen seems to be pretty wide,” says Gouker. 

“Do regulators even have the jurisdiction to act to stop sweeps in a lot of states? And if they do, do they want to? Will attorneys general step into the action like they did in 2015-2016 for daily fantasy sports? Sometimes it would clearly take a new law to stop sweeps from operating; is a law banning or regulating sweeps a likely scenario in any state?” 

Look for some of these questions to be answered, or at least debated, well into the new year.