AGA and SPGA Clash over Legality of Sweepstakes Casinos
The American Gaming Association (AGA) and the Social Sweepstakes Gaming Alliance (SPGA) have entered into a war of words via statements following the AGA’s recent State of the Industry webinar, in which it raised concerns over the regulatory status of sweepstakes casinos in the United States.
LISTEN TO THIS ARTICLE:During the February 19 webinar, AGA President and CEO Bill Miller described sweepstakes casinos as part of a larger challenge posed by unregulated gambling, which also includes offshore sportsbooks. According to the AGA, illegal and unregulated gambling operators accepted $109 billion in bets in 2024, which resulted in an estimated $17.3 billion loss in US revenue.
These illegal operations exploit consumer confusion and threaten to undermine the public trust we have built over many years.
AGA Accuses Sweepstakes Casino of Exploiting Legal Loopholes
The AGA also accused sweepstakes operators of leveraging “legal loopholes” to continue operating in some states and as such, said that they were part of a broader illegal market.
In response, the SPGA pushed back against the allegations, arguing that social sweepstakes gaming differs significantly from US online casinos and real money gambling. In its statement, the organization pointed out that sweepstakes casinos are legal in almost all states and that SPGA members “operate within well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos.”
The organization also argued that social sweepstakes platforms do not directly compete with traditional real-money online casinos and cited research from Eilers & Krejcik Gaming and Macquarie to support its claim.
Pointing to the continued growth of regulated iGaming in the US, which accounted for 30% of commercial gaming revenue in 2024, the SPGA argued that sweepstakes casinos have not impeded the industry’s expansion.
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SPGA Points to Responsible Gambling Tools
Challenging the AGA’s description of sweepstakes operators as irresponsible, the SPGA said that most social sweepstakes sites offer responsible gambling tools and contribute to state taxes, including sales and corporate taxes.
Furthermore, the SPGA said that its members implement the same compliance measures as AGA-regulated casinos, such as age verification and anti-money laundering protocols.
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