Key points:
- Legislative efforts to restrict or ban social and sweepstakes games have failed in three US states
- Arkansas' HB1861, Maryland's SB0860 and earlier legislation in Mississippi were all withdrawn or defeated
- The Social and Promotional Games Association (SPGA) cites growing concern over broad, poorly defined proposals
Legislative attempts to restrict sweepstakes-style promotional gaming have stalled in several US states, with bills in Arkansas, Maryland and Mississippi either withdrawn or left without action.
Arkansas House Bill 1861 was formally withdrawn this week, while Maryland Senate Bill 0860 failed to reach a vote before the deadline.
An earlier effort in Mississippi also ended without passage. According to the Social and Promotional Games Association (SPGA), the pattern reflects increasing scepticism among lawmakers toward proposals perceived as overly broad and lacking evidentiary support.
A SPGA spokesperson said: “These bills shared the same fatal flaw: No facts and no foundation. Legislators are consistently rejecting efforts to criminalise safe, digital entertainment enjoyed by millions of adults across the US.”
In Maryland, SB0860 sought to prohibit sweepstakes gaming entirely but did not provide data indicating harm to consumers or links to problem gambling.
In Arkansas, HB1861 included language that would have handed exclusive authority to licensed casino operators, while also limiting the dual-currency mechanics used by some social games.
The SPGA noted that both bills raised unintended consequences, including potential disruption to loyalty and rewards programmes offered by airlines, hotel chains and consumer brands.
The group said the lack of distinction between promotional games and gambling risked undermining established marketing practices across several sectors.
The SPGA stated: “When legislation threatens everyday perks from airlines, hotels and your local coffee shop, it’s clear the bills aren’t just misguided – they’re dangerously out of touch.”
Good to know: Industry groups have warned that such legislation could also impact software developers, payment processors and digital platforms, creating uncertainty around job security and technological investment
The SPGA continues to monitor similar legislation elsewhere in the US, including Louisiana Senate Bill 181, introduced earlier this year. The association warned in April that the bill’s broad language could misclassify long-standing promotional reward schemes as gambling, potentially affecting technology investment, digital innovation and legal clarity.
Under current US federal law, promotional sweepstakes require free entry and no purchase, distinguishing them from regulated gambling. The SPGA has called for further consultation with industry stakeholders before any regulatory changes are advanced.
