Sweepstakes trade body accuses the AGA of "willfully" ignoring facts
Responding to remarks by American Gaming Association CEO Bill Miller, the SPGA slams the industry trade body as “a cudgel for a narrow band of protectionist stakeholders”
The trade body representing the social sweepstakes industry has launched a stinging attack on the American Gaming Association (AGA), accusing it of having “trotted many of the same tired canards” in a presentation.
As part of the ‘State of the Industry’ video address released yesterday, February 19, AGA CEO Bill Miller said sweepstakes operators fall under the category of “unregulated actors” that circumvent state gaming laws.
Miller accused these websites and apps of deploying “legal acrobatics” to avoid calling themselves “betting or gambling.”
“Only then to offer products that most, universally, would agree are gambling but without the safeguards and regulatory constraints that build consumer trust, promote responsibility, and support state budgets,” he insisted.
However, the Social and Promotional Gaming Association (SPGA) came out fighting by arguing that social sweepstakes are “legal in almost all states” and its members operate within “well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos.”
“The AGA trotted out many of the same tired canards about social sweepstakes that self-interested critics have peddled for months,” the strongly worded statement read.
The SPGA urged the AGA not to waste resources “mischaracterizing an innovative category” and dismissed the suggestion that social sweepstakes directly compete with regulated online casinos.
“A fact supported by research from both [analyst firms] Eilers & Krejcik Gaming and Macquarie and by the AGA’s reporting showing 29% year-over-year (YOY) growth for US online casinos – another ‘record-setting year’ for online casino.
“That’s hardly the trajectory of an industry under dire competitive pressure,” the trade body said.
It added: “Rather than listening to the voice of the American consumer and standing with a legion of innovative entrepreneurs who are expanding the appeal of gaming, the AGA is choosing to serve as a cudgel for a narrow band of protectionist stakeholders.”
Earlier this month, the SPGA slammed “misguided” efforts to criminalize the burgeoning industry, after a bill was introduced by Senator Paul Corderman in Maryland that would outlaw sweepstakes casinos in the state.
Politicians are looking to do the same in Connecticut, while the Mississippi Senate has approved a bill by a vote of 44-1 to ban sweepstakes.
Besides sweepstakes, offshore gambling operators came in for criticism from Miller as he said this illegal industry took $402bn in bets annually and “drained over $4bn in tax revenue from communities.”
He also claimed these operators cost the regulated gaming industry in the US more than $17.3bn in lost revenue.
Meanwhile, the AGA’s presentation showed legal and regulated online gambling GGR, which comprises sports betting and igaming, surged 24.6% YOY in 2024 to $21.5bn.
It was noted that igaming revenue growth “accelerated” last year, while sports betting growth “moderated.”
The AGA said online now accounts for the majority of commercial revenue in 13 states, including Michigan, New Jersey, and Pennsylvania.
EGR has reached out to the AGA regarding the SPGA’s comments but has yet to receive a response.