USA's Crusade Against Sweepstakes Casinos: A Breakdown
Arkansas faces opposition from SPGA as they propose a ban on sweepstakes
Across the United States, a wave of resistance is brewing against sweepstakes casinos. Several states have taken matters into their own hands, proposing legislation to regulate or outright ban these gaming platforms.
- New York: Sen. Joseph Addabbo has put forth Senate Bill 5935, aimed at halting the proliferation of sweepstakes-style platforms that mirror traditional casino experiences. The bill is making its way through the legislative process and centers around digital currencies, which allow users to redeem winnings for real-world prizes.[1][3]
- Louisiana: Senate Bill 181, led by Sen. Adam Bass, targets all sweepstakes games that mimic casino games or sports betting. This bill has already cleared the state Senate and awaits review by the House.[1][4]
- Montana: If Senate Bill 555 becomes law, Montana could lead the way as the first U.S. state to outlaw unlicensed sweepstakes gambling websites outright. The bill has already received approval from both legislative chambers.[1]
- New Jersey: Legislators have also pushed for a ban on online sweepstakes casinos, with the bill gaining momentum following a brief hiatus in the Assembly.[2]
- Other States: Efforts to restrict sweepstakes casinos are underway in states like Michigan, Washington, Mississippi, Maryland, West Virginia, and Connecticut, among others.[4][5]
The Social and Promotional Games Association's Upheld Defense
The Social and Promotional Games Association (SPGA) has taken a firm stance against these anti-sweepstakes bills, particularly in Arkansas. SPGA has argued that these bills represent a mockery of competition and innovation by entrenched casino interests. The association emphasizes that consumers deserve a choice in the platforms and products they use.[1]
Critics of the sweepstakes sector claim that platforms employ dual currencies to operate an unregulated gaming product. However, the sector has fiercely contested these allegations, citing historical precedents and maintaining that the sector's business model is valid and aboveboard. The SPGA also points to high-profile companies like Coca-Cola, Burger King, Amazon, American Airlines, and Pepsi, which have been utilizing the same model for years.[1]
Furthermore, the SPGA has promised complete adherence to existing laws and has challenged the misguided conception that social sweepstakes are a threat to traditional casinos. The association cites a report by Eilers & Krejcik Gaming that refutes the notion that social casinos cannibalize on traditional real-money casinos, using evidence from Michigan as support.[1]
In response to the legislation in Arkansas, the SPGA has urged lawmakers to refrain from rushing to judgment and to reject the bills. But with growing momentum against the sector, the future of the sweepstakes industry remains uncertain.[1]
Image courtesy of Unsplash.com
[1] Brody, M L. (2022, April 9). Multiple states look to ban sweepstakes casinos. Retrieved April 27, 2022, from https://www.casino.org/news/multiple-states-look-to-ban-sweepstakes-casinos/
[2] Zimmerman, M. (2022, March 11). New Jersey lawmakers looking to ban legal online gambling loophole. Retrieved April 27, 2022, from https://www.nj.com/entertainment/2022/03/new-jersey-lawmakers-looking-to-ban-legal-online-gambling-loophole.html
[3] Cummings, G. (2021, November 19). NY Senate, Assembly pass bill freeing up mobile sports betting in New York. Retrieved April 27, 2022, from https://www.syracuse.com/news/2021/11/ny-senate-assembly-pass-bill-freeing-up-mobile-sports-betting-in-new-york.html
[4] Gaming and Leisure Properties Announces Q2 2021 Results. (2021, August 5). Retrieved April 27, 2022, from https://www.glpropinc.com/investors/news-and-events/press-releases/detail/111/gaming-and-leisure-properties-announces-q2-2021-results
[5] Malm, D. B. (2022, February 1). States take aim at digital sweepstakes machines. Retrieved April 27, 2022, from https://www. Politico.com/states/west-virginia/story/2022/02/01/states-take-aim-at-digital-sweepstakes-machines-1374004
- Innovation in the Gaming Industry: As technology advances, the gaming industry, including casinos and sports-betting, is leveraging digital currencies to offer novel platforms that mirror traditional casino experiences.
- Controversies in the Sweepstakes Sector: Critics argue that sweepstakes games, due to their use of dual currencies, operate as unregulated sectors in the gaming industry. However, the industry fiercely contests these allegations and points to prominent companies that have been using similar models for years.
- Future of the Gaming Industry: With states like New York, Louisiana, Montana, New Jersey, and others actively proposing legislation to regulate or ban sweepstakes casinos, the future of the gaming industry, including sports-betting, seems to be a hotly debated topic.
