The American Gaming Association us calling on gaming regulators to take a closer look at sweepstakes operators, issuing a memo that was published last week called “Regulatory Vigilance Critical to Ensure ‘Sweepstakes’ Don’t Threaten Consumers and Undermine Gaming Regulation.”
“As a result, consumers are being deprived of protections and states are forgoing significant tax and revenue opportunities as this gambling replaces that conducted through regulated channels,” the AGA memo says (h/t Legal Sports Report), ending by stating that state gambling regulators and attorneys general “should investigate companies or platforms that offer casino games or a form of sports betting under the ‘sweepstakes’ model.”
The memo suggests that companies are using “sweepstakes-based” models to “potentially skirt gaming laws and regulations that United States sports betting and online casino operators are obligated to adhere to and follow.
“The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions,” the memo states. “These sweepstakes-based operators have weak (if any) responsible gaming protocols and few, if any, self-exclusion processes.
“There is no independent product testing to ensure basic fairness to players, and although many claim players must be 18+, age verification procedures, if they exist are often questionable. The opaque nature of these operations also presents a prime opportunity for illegal activity and enriching bad actors.”
