At the recent SBC Summit 2025 in Fort Lauderdale, panelists tackled the complexities surrounding online sweepstake casinos. Despite the ongoing debates, there remains no clear consensus on their future regulation.
Who is truly the target audience?
The panel kicked off with a tough question: Who are social casinos aimed at? Jamison Selby, CEO of Rubystone, suggested that around two-thirds of players engage freely without spending money, aiming for entertainment, while a minority plays to win prizes with virtual currency. Conversely, Jason Rosenberg highlighted the strong demand for sweepstakes casinos, especially in states lacking legalised iGaming.
Shawn Fluharty countered by representing licensed internet casino operators, citing concerns as twelve states are currently seeking to ban sweepstakes casinos.
This argument has already taken place
The risks for sweepstakes casinos, especially in states considering bans, were a key point. Selby drew parallels with the struggles faced by daily fantasy sports operators, suggesting that the long game could favour sweepstake operations despite legislative challenges.
Fluharty emphasised the need for legal resilience, stating that many sweepstake operators are not actively contesting state regulations, leading them to retreat rather than challenge the status quo.
It’s the mechanics that’s the issue
Rosenberg explained the legal intricacies regarding sweepstake mechanics. Unlike traditional games, players cannot buy coins directly; this raises questions about the legality of play. Brett Calapp added that the situation is akin to McDonald’s Monopoly game, which prevents players from purchasing game pieces distinctly from food items.
Fluharty took the analogy further, asserting that sweepstakes operators are undermining state profits by operating in a grey market.
Where do we go from here?
Despite differing views, the panel agreed on the urgency for change. Many operators wish to pursue licensing, while some tribal firms attempt to navigate laws using innovative structures. The possibility of a catastrophic event similar to the “Black Friday” poker ban was warned against, with Rosenberg pointing to a disconnect between political lobbying and operational realities within the industry.
The future remains uncertain, but a unified approach is necessary to avoid ongoing confusion and debates in this evolving gaming landscape.
Key Points
- Online sweepstakes casinos are at the centre of legislative debates, with no clear path forward.
- Two-thirds of social casino players engage without spending, raising questions about target audiences.
- 12 states are currently attempting to ban sweepstakes, adding to the controversy.
- Panelists drew parallels with the past challenges faced by daily fantasy sports in achieving legitimacy.
- Legal structures surrounding sweepstakes mechanics remain contested, highlighting the complexity of regulation.
- A unified industry voice is needed to navigate the future of online sweepstake casinos effectively.
Why should I read this?
If you’re interested in the future of gaming, especially regarding the growing controversy surrounding online sweepstakes casinos, this article’s for you. It sheds light on the myriad challenges and debates that could shape how we view and regulate this sector. We’ve done the legwork to keep you informed – it’s a bit of a circus, and it’s important to know what’s at stake!
