AGA: There is a “long way to go” in the sweepstakes operators debate

The American Gaming Association (AGA) has said there was still a “long way to go” in the ongoing debate around sweepstakes casino operators in the US.

Speaking on a Zoom webinar with Indian Gaming Association conference chair Victor Rocha and Indian Gaming Association executive director Jason Giles, AGA SVP of government relations Chris Cylke delved further into the issue that has been making headlines in the sector.

Rocha and Giles have already preceded over two similar sessions, including one with Sports Betting Alliance chief Jeremy Kudon, in which they expressed concern that the vertical was masquerading as sports betting and igaming.

The AGA released a memo in August warning state regulators to be vigilant against “unlicensed” sweepstakes operators that were “exploiting loopholes.”

It read: “The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions. 

“These sweepstake-based operators have weak (if any) responsible gaming protocols and few, if any, self-exclusion processes.”

Cylke provided further color to the AGA’s stance during the Zoom session as he noted the body’s membership were aligned on the issue.

He said the plan to release the memo to the public was not initially in the offing, with the brief shared with state attorney generals and regulators in the spring.

Cylke said: “We started saying that, at the very least, we can recommend this is a growing segment that deserves a little bit more scrutiny from regulators and from others, so let’s put together a memo and see whether our diverse segments of membership are behind this.

“As we always do, we tried to have a pretty transparent and inclusive process, [and] got some feedback on the memo. What we found was that there was just really strong support from our tribal members, from our commercial members, and even from our suppliers.”

The AGA added that while the trade body had made its stance clear, the onus remained on the state regulators to push back against sweepstakes operators.

Cylke said: “It was an important first step to really raise some questions about what’s happening here. And ultimately, the approach the memo takes is this is going to be up to regulators to look at and determine whether or not there’s anything this is.

“[It’s] a situation where we like the progress we’ve made, like conversations that we’ve been having as a result of this memo. But there’s still a long way to go in terms of fully, I won’t say prosecuting, but fully getting to the bottom of this issue.”

Elsewhere, EGR North America spoke to the Social and Promotional Games Association, the trade body for sweepstakes operators, to gauge its stance on the topic.