There was arguably no hotter topic in 2024 than the sweepstakes business. While the operators in the space have been quietly running operations for years, this was the year that the regulated industry started to take action against them. Some states, like Michigan, have effectively served operators like sweeps powerhouse VGW, cease and desist letters. Lawmakers are suggesting drafting online casino legislation in states that explicitly prohibits these operators. And, of course, there are a bevy of class action lawsuits attempting to take operators, payment processors and even Apple and Google down.
Will this ramp up in 2025? The SBC Americas editorial team offered their predictions on what is to come in the world of sweepstakes gaming.
Jessica Welman
Prior to a recent iGaming Daily episode where I spoke with attorney Bill Gantz, I was convinced this was going to play out in the courts. However, as Gantz pointed out, most of these cases are in tenuous positions and many are going to be sent to arbitration. Moreover, with state laws and how those laws define gambling and sweepstakes, a decision in one state won’t necessarily translate over to others. With that in mind, I think what we will see in the coming year is new clarifying legislation, likely in states that have online casinos already, to explicitly prohibit the vertical and protect the regulated market. There may be some action from some motivated state attorneys general as well, but depending on the state, I am not sure how quickly the sweeps sites will roll over.
Whatever the action, just keep in mind that state laws around both sweeps and gambling vary wildly state-to-state, so don’t expect a nationwide shutdown any time soon.
Justin Byers
In 2025, sweepstakes need a clear direction. The vertical is increasing in popularity but is also facing immense scrutiny, which will continue into next year. I expect regulators and lawmakers across the country to draw a line in the sand with what constitutes sweepstakes gaming. Until then, the sweepstakes industry will continue to reach new heights as new players enter the vertical and new products hit the market.
I also expect some of the large corporations and brands in gaming that have yet to take advantage of sweepstakes to do so in 2025 as the vertical creates new revenue-generating opportunities while creating a new avenue to acquire and retain customers.
Tom Nightingale
First things first, the industry needs to decide what we’re talking about here. An industry executive once said that if it sounds like an online casino, looks like an online casino and acts like an online casino, it’s probably essentially an online casino. The word “essentially” is doing a lot of heavy lifting there, and it all lies in the hands of legislators and regulators, but a lack of clarity isn’t helping anyone. What does appear clear from sweeps’ popularity is that they are serving an existing demand of many consumers. Plenty of people want this form of gaming, and whether it’s regulated or not, companies will queue up to provide it if there’s a path to profitability. It’s not going away; does it not make sense for powers-that-be to seriously look at bringing it in-house?
