SPGA statement in response to the American Gaming Association’s comments on the social sweepstakes industry

In its recent State of the Industry presentation, the AGA trotted out many of the same tired canards about social sweepstakes that self-interested critics have peddled for months.   

The AGA knows the facts: properly operated sweepstakes are legal in almost all states. SPGA members operate within well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos.

The AGA also knows that social sweepstakes sites don’t directly compete with traditional real-money online casinos, a fact supported by research from both Eilers & Krejcik Gaming and Macquarie and by the AGA’s reporting showing 29% year-over-year growth for U.S. online casinos – another “record-setting year” for online casino. That’s hardly the trajectory of an industry under dire competitive pressure.  

Finally, the AGA knows its claims of irresponsible operation by social sweepstakes sites are misleading. SPGA members operate under a published Code of Conduct requiring age verification, location verification, KYC systems and processes, and AML policies and processes, often employing the exact same technology as AGA members. And most social sweeps sites have tools in place to allow consumers to control their play and pay some form of state tax, such as sales or corporate tax.

The AGA willfully ignores these facts because of a small but vocal cadre of members who are anti-competitive and resistant to innovation.    

Millions of American adults enjoy the safe and engaging games provided by social sweeps sites. These players love that no purchase is necessary to play or win prizes. 

But 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.

Ironically, the regulated real-money gambling industry is under threat – but not from social sweepstakes sites. 

A new, aggressive federal administration has upended nearly every long-held assumption about the primacy of states in regulated gambling and threatened to open a 50-state federal sports betting market without ever holding a hearing or passing a bill. And that’s just in the first 30 days.

We urge the AGA to focus on matters such as these that are genuinely relevant and pressing to the industry instead of wasting resources mischaracterizing an innovative category.