Social and Promotional Games Association (SPGA) members disagree vehemently with Arkansas bills HB 1861 and SB 524, which would classify sweepstakes gaming as illegal gambling and allow the state’s three licensed casinos — Oaklawn Racing Casino Resort Hotel, Saracen Casino Resort, and Southland Casino Hotel — to offer online casino gaming.
SPGA Responds To Arkansas Gaming Bills
The SPGA released this statement in response to the anti-sweeps bills:
“The Social and Promotional Games Association (SPGA) strongly opposes Arkansas bills HB1861 and SB524, which dangerously misclassify lawful social sweepstakes games as illegal gambling. These proposals echo anti-competitive efforts pushed by entrenched casino interests and represent a significant threat to businesses, innovation, and a consumer’s freedom to choose what games they can play on their phones.
“By broadly redefining ‘dual-currency system’ games and imposing felony penalties, these bills risk criminalizing not only social sweepstakes but also standard promotional tools used by countless U.S. companies, including McDonald’s, Coca-Cola, Pepsi, Burger King, Amazon, and American Airlines.
“Sweepstakes and draw-based promotions have been a staple marketing strategy for decades, driving engagement while fully complying with existing laws. We acknowledge the state’s role in overseeing interactive gaming, but these bills go too far. Social sweepstakes are not casinos. They offer free-to-play entertainment to millions of adults, with most users never spending money.
“Treating them as a public harm is misguided and unsupported by data. Independent research from Eilers & Krejcik Gaming confirms that social sweepstakes do not compete with regulated iGaming. In fact, when such games exited Michigan, iGaming growth slowed — clear evidence these are separate markets.
“The SPGA urges Arkansas lawmakers to reject this broad, punitive legislation and instead engage with stakeholders to create a balanced, informed policy. Don’t destroy a legal, thriving industry — and consumer choice — based on misinformation.”
Sweepstakes Gaming Would Be Outlawed
Section two of the bills would implement the Interactive Gaming Act. Each aforementioned casino would receive one iGaming license to add to their online sportsbook license.
The Arkansas Racing Commission would regulate the state’s online casino market. However, the legislation does not set a proposed tax rate or license fee.
In addition, the state General Assembly also determined that “unlicensed, unregulated and untaxed casino-style and sports wagering offerings are an ever-growing threat to the citizens of Arkansas.”
The state of Arkansas defines sweepstakes as “any online or mobile game, contest, or promotion” that “utilizes a dual-currency system of payment that allows the player to exchange the currency for a prize, award, cash or cash equivalent, or a chance to win any prize, award, cash, or cash equivalent” and simulates casino-style, lottery games, or sports betting.