Key points:
- The AGA raised concerns over the impact of sweepstakes casinos, stating they contribute to illegal gambling activity and undermine the regulated market
- The SPGA has rejected the claims, arguing that social sweepstakes operate within established legal frameworks and do not compete with real-money online casinos
- The disagreement comes amid wider discussions on gaming regulation, including the role of federal oversight in the US market
The American Gaming Association (AGA) and the Social Sweepstakes Gaming Alliance (SPGA) have exchanged statements following the AGA’s recent State of the Industry webinar, during which it criticised sweepstakes casinos and their regulatory status in the US.
During the 19 February webinar, AGA President and CEO Bill Miller identified sweepstakes casinos as part of a wider issue of unregulated gambling alongside offshore sportsbooks.
The AGA estimated that illegal and unregulated operators took $109bn in bets in 2024, costing the US $17.3bn in lost revenue.
Miller said: “These illegal operations exploit consumer confusion and threaten to undermine the public trust we have built over many years.”
The AGA also stated that some sweepstakes operators “exploit legal loopholes” to continue operating in certain states and described these businesses as part of a broader illegal market.
The SPGA has rejected these claims, arguing that social sweepstakes gaming is legally distinct from offshore gambling.
SPGA stated: “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 SPGA also argued: “The AGA 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.”
The organisation pointed to the continued rise of regulated iGaming in the US, which accounted for 30% of commercial gaming revenue in 2024, as evidence that sweepstakes operations have not hindered the sector’s expansion.
Additionally, the SPGA disputed the AGA’s assertion that sweepstakes sites operate irresponsibly.
SPGA commented: “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 group further argued that its members use the same compliance technologies as AGA-regulated casinos, including age verification and anti-money laundering policies.
Good to know: The AGA has stated it will continue working with regulators to tackle unlicensed gambling, while the SPGA has called for greater recognition of sweepstakes gaming as a legitimate and regulated sector
The dispute follows the release of AGA’s report on growth in the US gaming sector. According to its latest figures, the industry generated $71.9bn in gross gaming revenue (GGR) in 2024, reflecting a 7.5% year-on-year increase. The AGA also estimated that iGaming accounted for 30% of the total commercial gaming revenue, nearly doubling its market share since 2021.
