Montana has recently banned sweepstakes, and Louisiana is very close to doing so itself. These two states have led the charge against the sector, but they are hardly the only ones to have opted for a more antagonistic stance against the vertical, which has come under unprecedented pushback.
New York’s Attorney General has similarly issued a stance lambasting the industry and sent 26 cease-and-desist letters to popular sweepstakes operators in the Empire State recently. But these states are not outliers.
Now, the Gambling Control Unit in Maine, the state’s gambling watchdog, has similarly cautioned the public against playing at platforms that offer online casino-style games, which the regulator said were strictly prohibited under state law.
The regulator specifically calls out sweepstakes and social casinos by name in its statement, which reads as follows:
"Of particular concern are so-called 'sweepstakes' or 'social casino' sites that may offer real-money payouts, dual-currency systems, or prizes such as gift cards. These platforms are not licensed or overseen by the GCU."
The regulator also doubled down on its antagonism against the sector and said that these are just some of the unlicensed entities that continue to target local residents and put their finances and personal information at risk of theft or abuse.
The assessment has prompted a quick response from the Social and Promotional Games Association (SPGA), which disagreed with the classification given to the sector by the regulator.
In a statement shared with Casino Guru News, the SPGA said that it politely disagreed with the characterization of sweepstakes businesses and argued that all members operated legally under longstanding promotional frameworks.
"Unlike the offshore gambling sites referenced in the statement, SPGA members operate legally within the US, pay appropriate taxes, and follow a strict code of conduct to ensure consumer protection and fair play," the statement further read, drawing a clear line between offshore entities that – as pointed out – tend to target local residents but have no business or financial obligations.
"It’s disheartening to see this continued conflation of lawful sweepstakes promotions with unregulated gambling, particularly in the absence of any evidence of consumer harm," the SPGA added, and said that it welcomed dialogue with stakeholders to clarify how the sector operated and why it was a legitimate business.
In the meantime, both Louisiana and Connecticut are poised to ban sweepstakes, pending gubernatorial signatures.
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