Sweepstakes trade body slams “misguided” efforts to criminalize industry
SPGA’s stinging criticism comes as lawmakers in Maryland and Connecticut introduce bills to ban sweepstakes operators
The Social and Promotional Gaming Association (SPGA) has insisted its members operate within US laws and accused politicians of conflating social sweepstakes with products operating in illegal markets.
The trade body was reacting to Senate Bill 860, introduced by Senator Paul Corderman in Maryland, that would outlaw sweepstakes casinos in the state, while any supplier or affiliate supporting these products would have their licenses revoked.
In a strongly worded statement reacting to the development, the SPGA said the bill was influenced by “anti-competitive special interests.”
“The Social and Promotional Games Association emphatically rejects the Maryland General Assembly Bill’s conflation of social sweepstakes with products that operate in illegal markets,” the statement read.
“This misguided legislation threatens to criminalize a marketing tool utilized daily by thousands of American businesses to promote everything from coffee to cheeseburgers to cryptocurrency.”
The SPGA went on to argue that social casinos with sweepstakes prizes are “a legal form of entertainment enjoyed by millions of American adults.”
The statement continued: “SPGA members operate within the laws governing sweepstakes promotions and uphold the highest standards of compliance, transparency, and consumer protection.
“This bill is another unfortunate example of anti-competitive special interests bending the legislature to their will at the expense of innovation, small businesses, and the millions of consumers who enjoy the safe and engaging mobile games offered by social casinos.”
Meanwhile, a group of politicians in Connecticut have sweepstakes casinos and sportsbooks in their crosshairs, after the filing of Senate Bill 1235 to ban both offerings.
Incidentally, the proposals by the Connecticut General Law Committee also include a ban on lottery resellers and lottery couriers.
In response to the part of the bill calling for a ban on sweepstakes, the SPGA repeated its anti-competitiveness claim and accused the legislature of a “shocking overreach that as insult to the voters of Connecticut.”
Last year, sweepstakes operator VGW, which is behind brands including Chumba Casino and Luckyland Slots, exited Connecticut after the state sent a cease-and-desist letter to the company.
VGW also pulled its poker product, Global Poker, from Nevada in December.
Political pressure against the sweepstakes industry is mounting, with Arizona’s regulator warning players earlier this month that sweepstakes operators are “not legal or regulated.”
The Arizona Department of Gaming said users of these products, as well as those who play on illegal online casinos, were “vulnerable to fraud, identity theft, and other serious risk.”
Paul Leyland, partner at independent research firm Regulus Partners, recently penned an article for EGR in which he argued “the feds are coming” for US sweepstakes casinos.
Established in September 2024, the SPGA, whose members include High 5 Games and Fliff, introduced a code of conduct specifically for sweepstakes operators in December.