The Sports Betting Alliance
The Sports Betting Alliance (SBA) includes major sports betting companies such as FanDuel, DraftKings, Fanatics, and BetMGM. The SBA’s president, Jeremy Kudon, recently spoke during a webinar emphasizing the need for tribal nations and industry leaders to work together to fight sweepstakes services.
Kudon stated that unregulated gaming is now a pandemic, and the urgency is required to safeguard the interests of regulated operators. The IGA recently deemed sweepstakes gaming and daily fantasy sports illegal activities in California, aligning with the mission of the SBA to try to stop such operations from taking place in the United States.
The coalition hopes to raise awareness among state officials and tribal leaders regarding the detrimental effects of unregulated gaming.
Sweepstakes Gaming Growing in Popularity
The sweepstakes gaming industry is gaining popularity, especially among young people, due to the freeplay format. Players can join and play for free using the virtual currency of Gold and Sweeps Coins. Sites offer various game types, including slots, table games, and live dealers. Once played, Sweeps Coins can be redeemed for real prizes, with options including gift cards and real prizes.
Sweeps providers like High 5 Casino, Wow Vegas, Stake.us, and Fliff Social Sportsbook have gained traction recently. Players can easily utilize Sweeps Coins and redeem them for prizes over time. Opponents say the real monetary exchanges blur the lines between an entertainment service and gambling.
One major concern among opponents is age verification. Some sites reportedly do not enforce the minimum age requirement, which makes it easier for younger players to access games. Kudon reported that sweepstakes gaming has already generated $2 billion, with $4 billion expected to be generated by 2025. The SBA feels the revenues that would benefit regulated operators are instead being siphoned off by unregulated platforms.
The SBA and IGA are asking state lawmakers to act against unregulated gaming. They feel the legal framework needed to protect consumers is missing, and fair competition within the iGaming community is important.
What Happens Next?
The new battle with the IGA and SBA is one of several issues facing the sweepstakes sector at the moment. The American Gaming Association is calling for transparency regarding sweepstakes sites, and regulators are asked to ensure that services are legit and operators are following protocols.
Several states have issued cease-and-desist orders to stop prominent operators from offering services, leading to the removal of platforms. Some businesses are also facing lawsuits in state and federal court as players look to recover losses based on loss-recovery statutes based on illegal gambling filings.
The status of sweepstakes gaming, whether legal or illegal, depends on who you ask. Some say that it’s considered a gambling activity because players purchase Gold Coins and earn ‘free’ Sweeps Coins. Others say this is a workaround to the law.
It may take a legal change across the board, be it state by state or federally, for the argument to finally be settled. In the meantime, sweepstake sites will continue to function and deal with any lawsuits or legal challenges that come their way.
