SPGA releases statement in response to AGA webinar
The AGA hosted a State of the Industry conference on February 19, voicing its concerns over unregulated offerings such as sweepstakes casinos.
Key Points
- The SPGA stated that the AGA “trotted out many of the same tired canards” about social sweepstakes casinos as part of its webinar
- The Association also went on to state that properly regulated sweepstakes are legal in nearly every state and that its members “operate within well-established legal frameworks”
The Social & Promotional Games Association (SPGA) has issued a response to comments made by the American Gaming Association (AGA) during a State of the Industry webinar hosted on February 19.
“In its recent State of the Industry presentation, the AGA trotted out many of the same tired canards about social sweepstakes that self-interested critics have peddled for months. The AGA knows the facts: Properly operated sweepstakes are legal in almost all states. SPGA members operate within well-established legal frameworks that contrast starkly with black-market offshore sportsbooks and casinos,” the SPGA said.
The Association also stated that social sweepstakes casinos fail to directly compete with traditional real-money online casinos, referencing the AGA’s report of 29% year-over-year growth for the vertical.
“That’s hardly the trajectory of an industry under dire competitive pressure. Finally, the AGA knows its claims of irresponsible operation by social sweepstakes sites are misleading,” the SPGA said.
Good to know: The SPGA, in an exclusive statement sent to Gaming America, said that New Jersey is “taking the lead” in sweepstakes regulation following the introduction of a potential sweepstakes bill on January 16 by Assemblyman Clinton Calabrese
“SPGA members operate under a published Code of Conduct requiring age verification, location verification, KYC systems and processes and AML policies and processes, often employing the exact same technology as AGA members. And most social sweeps sites have tools in place to allow consumers to control their play and pay some form of state tax, such as sales or corporate tax.
“The AGA willfully ignores these facts because of a small but vocal cadre of members who are anti-competitive and resistant to innovation.”
AGA President and CEO Bill Miller stated that “unregulated actors” such as social sweepstakes casinos cost the US nearly $17.3bn annually in lost revenue.
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