Play’n GO, a leading iGaming software provider for online and land-based operators, announced earlier this week that the Swedish gaming giant will never supply games to sweepstakes casinos.
“Sweepstakes casinos do not operate inside a regulated framework, and that’s not something we support. Our commitment to regulated markets is absolute. We will never supply our games to sweepstakes casinos,” said Johan Törnqvist, Play’n GO CEO and Co-Founder.
Play’n GO Joins Anti-Sweepstakes Gaming Movement
Sweepstakes casinos and social casinos are increasingly under scrutiny by U.S. regulators and lawmakers. In Florida on Tuesday, a pair of bills prohibiting dual-currency sweepstakes gaming platforms died.
State lawmakers agreed to extend the session through Friday, June 6, only to complete any budget-related legislation. Sen. Corey Simon’s (R-3) bill, SB 1404, and its House counterpart, HB 1467, were dropped
The news also came on the heels of the Louisiana Senate unanimously approving SB 181 in a 39-to-0 vote to ban sweepstakes gambling and penalize operators, affiliates, suppliers, and investors.
Shawn Fluharty, Head of Government Affairs for Play’n GO, added:
“Sweepstakes casinos threaten the regulated market model that many of us in the industry have worked so hard to achieve, which protects players first and foremost, and delivers much-needed revenue to jurisdictions. Regulators across the U.S. in particular are rightfully beginning to crack down on these unregulated operations.
“And I can say with confidence that regulators have long memories – anyone doing business with sweepstakes casinos today will find it very difficult to do business in a future regulated market. Additionally, lawmakers certainly have an interest in protecting licensees and state revenues going forward.”
Sweepstakes Casinos Operate In Legal Gray Area
Play’n GO has been a vocal advocate for increased regulation in the online gaming industry for many years. The company only supplies games to licensed gambling operators, not offshore casinos or unregulated sweeps sites.
Sweeps platforms in the U.S. operate in legal gray area, utilizing a dual-currency system. Since the sites are not classified as gambling platforms, they can avoid the “Internet gambling” and “Internet sports wagering” labels.
Sweepstakes casinos are free online gaming platforms that allow players to enjoy casino-style games, including blackjack, roulette, and slots, without spending real money.
The platforms operate under a sweepstakes model, allowing players to win real cash prizes using virtual currencies like Gold Coins (GC) and Sweeps Coins (SC).
Although sweeps operators do not require gambling with real money, the platforms also allow players to redeem their virtual coins for real money or prizes.
That simple catch has led to lawmakers and regulators taking action against the sites.