Sweepstakes casinos facing resistance from gaming execs as tribal leaders and industry experts declare a strong push against unregulated online gambling platforms. The Indian Gaming Association (IGA) recently hosted a webinar featuring Howard Glaser from Light & Wonder and Tres York from the American Gaming Association (AGA). More insights can be found here.
The discussion highlighted increasing efforts to counter unregulated gambling operations, particularly sweepstakes casinos, which have historically exploited legal loopholes. Howard Glaser stated, “With billions in unregulated play, states are realizing the significant risks to consumers and the legitimacy of regulated gaming.” As a result, more states are legislating against these platforms. According to the American Gaming Association, effectively regulating this space is crucial, as highlighted by the AGA here.
Sweepstakes Casinos Facing Resistance
The Louisiana Gaming Control Board recently issued 40 cease-and-desist letters to sweepstakes casinos and other illegal operators. This action comes after Governor Jeff Landry’s veto of a bill banning these platforms, citing existing authority to target illegal operations. New York joined Nevada, Montana, and Connecticut this week in passing a law aimed at banning online sweepstakes, which could lead to significant repercussions for unregulated entities like High5Games.
State and Tribal Unity Against Unregulated Gambling
The IGA webinar underscored the collaboration between state and federal bodies against sweepstakes casinos. Sixty-five tribal entities filed a federal brief targeting prediction markets, while the AGA and 34 states opposed operations like those conducted by Kalshi. Glaser referred to recent legal actions as a “Black Tuesday” for illegal operators, emphasizing the shift in momentum against them.
The sweepstakes industry’s failure to mount a legal defense demonstrates their weakened position. In states like California, discussions are underway to introduce legislation targeting these operations. The IGA expects this to lead to wider regulatory enforcement and consumer protection measures.
Sweepstakes Operators Facing Defeat
As legislation progresses, Glaser predicts that the sweepstakes industry will face increased scrutiny, especially as bans solidify in more states. Posts from industry leaders confirm that regulatory pressure will drive many operators out of business.
Glaser’s remarks that the industry’s overconfidence stemmed from past successes of offshore operators serve as a warning. The gaming landscape is evolving, and stakeholders need to be cautious about potential infringements in regulatory grey areas. He noted, “Even sophisticated investors cannot ignore this risk. The momentum is clearly shifting against unregulated platforms.”
