Pass New Laws
The AGA wants legislators in every state to pass new laws preventing sweepstakes gaming operators from offering real-money gaming. Currently, only a handful of states can provide real-money casino gaming online. These include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Even more states offer sports betting.
The AGA feels there needs to be more oversight regarding the current platforms offering sweepstakes gaming. There are potential risks for consumers, and the economic integrity of the legal iGaming market is reportedly at risk.
In its call to action, the AGA stated that sweepstakes sites have weak protocols for responsible gaming and few processes for self-exclusion. Real-money sites are required to offer both to ensure player protection.
Additional Complaints
The AGA also feels that there is no independent product testing to ensure the fairness of games, and player age verification processes are also questionable. The AGA states that the services ‘opaque nature’ presents a prime opportunity for illegal activity.
What’s the Difference?
The AGA pointed out that the regulatory frameworks utilized by social casino games and sweepstakes casino sites differ. Sweepstakes casinos use dual currency, often in Gold and Sweeps Coins. Players can explore games with Sweeps Coins and exchange them for real prizes.
Casual social casino games are similar to gambling games but have rewards that are not redeemable for a real-world currency. The AGA stated that sweepstakes operators promote their services as a gaming experience where players can earn cash prizes or gifts.
This is not the first step that action has been taken against the sweepstakes gaming market. Late last year, Michigan decided to send cease-and-desist letters to Sweepstakes Limited, the operator behind Stake.us, and VGW Holdings. LuckyLand Slots and Chumba Casino are among the VGW gaming sites.
Once the letters were sent, many online sweepstakes sites began shutting down services in Michigan. Now, the AGA is trying to stop operators from featuring sweepstakes gaming nationwide.
Will the AGA Succeed?
It will be interesting to see if legislators and regulators begin to take a closer look at these services and if legislation will be presented that will help or hinder the freeplay providers. Most sweepstake operators follow local laws and feature responsible gambling information so players remain safe while taking advantage of services.
Members of the sites are not obligated to purchase Gold Coins to play and can earn free coins in various ways. The popular sweepstakes sites utilize the best gaming portfolios, with games provided by software companies such as Pragmatic Play, Betsoft, BGaming, and more.
There is a legitimacy factor, and sweepstakes sites that are serious about player safety may be better off than those that are more obscure in terms of services and sweeps rules.