AGA and SPGA Lock Heads Over Sweepstakes Legality

AGA and SPGA Come to Heads Over Sweepstakes Legality

By Jerry Smith Staff Writer Updated: 02/28/2025

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Jerry’s greatest advantage is his extensive experience on the casino floor. His time as a casino manager taught him everything about what makes a player tick. Besides being a skilled poker player, he has deep knowledge of all live table games and gambling regulations in the US.

AGA and SPGA Lock Heads

Comments at the Annual State of Industry Webinar

The AGA recently hosted a State of Industry meeting. This is where Chief Executive Bill Miller took a firm stance, stating that sweepstakes casinos are part of what he believes to be the broader illegal gambling landscape in the US. Miller thinks that sweepstakes casinos navigate legal loopholes to avoid being directly classified as gambling but offer the services that would be classified as such.

The SPGA quickly countered these claims, defending sweepstakes casinos’ legality and operational integrity.

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 SPGA argued in defense. It pointed out that its members operate under laws that completely contrast those governing unregulated and black-market operators.

The SPGA went further and pointed out its published code of conduct, which enforces strict age and location verification as well as KYC and AML policies. They also suggested a commitment to responsible gambling, stating that sweepstakes casinos have tools in place that allow consumers to control their play.

Industry Response on the Economic Impact

During the webinar, the AGA estimated that illegal and unregulated operators took $109 billion in bets in 2024, costing the US $17.3 billion in lost revenue.  At the same time, the SPGA argued that the AGA knows that sweepstake sites don’t directly compete with real-money online casinos, which is a fact supported by research from both Eilers & Krejcik Gaming and Macquarie.

The SPGA pointed to the continued rise of regulated iGaming in the US, which accounted for 30% of commercial gaming revenue in 2024, showing evidence that social sweepstakes casinos have not harmed the sector’s expansion.

The AGA’s argument has added fuel to the fire, with legislative bodies such as the Mississippi Senate moving to restrict these platforms. At the same time, industry leader VGW announced a policy to raise the minimum age for players from 18 to 21 in response to the increased scrutiny.

As we see sweepstakes casinos stirring controversy, the sector remains at a crossroads. The future of these platforms is unknown. The AGA and SPGA remain at locked heads in the ongoing struggle to define and regulate non-traditional gaming models.