Summary
- Maine’s gambling regulator has criticized the sweepstakes and social casino industry.
- The state is not the only entity to have adopted a confrontational tone toward the sector.
- New York, Connecticut, Louisiana, and several other states are opposing the sector.
Montana recently banned sweepstakes, and Louisiana is on the verge of doing the same. These states are leading the move against the industry, but they are not alone in adopting a more adversarial approach. The sector is facing significant opposition. Similarly, New York's Attorney General has criticized the industry, issuing 26 cease-and-desist orders to major sweepstakes operators in the state. These actions are not isolated incidents.
Sweepstakes categorization causes pushback from interest groups
The Gambling Control Unit in Maine, the state's gambling authority, has issued a warning to the public about participating in online casino-style games. These activities are strictly prohibited by state law. The regulator specifically mentioned sweepstakes and social casinos, stating: Particularly concerning are 'sweepstakes' or 'social casino' sites that might offer real-money payouts, dual-currency systems, or prizes such as gift cards. These platforms lack licensing and oversight from the GCU. The regulator further criticized these unlicensed entities for targeting local residents, thereby risking their finances and personal information. In response, the Social and Promotional Games Association (SPGA) challenged the regulator's classification. In a statement to Casino House Group News, the SPGA respectfully disagreed with the regulator's portrayal of sweepstakes businesses, asserting that all its members operate legally within established promotional guidelines.
Clarifying what sweepstakes truly are
According to the statement, Unlike offshore gambling sites, SPGA members operate legally within the US, pay appropriate taxes, and adhere to a strict code of conduct to ensure consumer protection and fair play. This distinction highlights that offshore entities often target local residents without any business or financial obligations. The SPGA emphasized, It’s disheartening to witness the ongoing confusion between lawful sweepstakes promotions and unregulated gambling, especially without any evidence of consumer harm. They expressed openness to engaging in dialogue with stakeholders to explain how the industry operates and assert its legitimacy. Meanwhile, both Louisiana and Connecticut are set to ban sweepstakes, pending the governor's approval.
