IGA likens sweepstakes operators to terrorists

Sweepstakes operators are increasingly under scrutiny in the United States, and the latest salvo fired against the sector comes from the Indian Gaming Association.

During the New Normal webinar series, Victor Rocha, IGA’s Conference Chairman, said that there could never be a collaboration between tribal gaming authorities and sweepstakes operators.

IGA says sweepstakes casinos are "terrorists"

Taking matters a step further, Rocha likened sweepstakes to "terrorists" and bluntly stated that IGA is not in the habit of "negotiating with terrorists." He further noted that the current wave of discontent against the sector is well-founded, with critique of the sweepstakes model reaching a "boiling point" in certain places, including California.

Tribes have mostly criticized sweepstakes companies for offering an unregulated form of gambling, which the latter deny. Sweepstake operators have insisted instead that the sweepstakes model was well-established and perfectly legal.

IGA has not been the only trade body to aim for the sweepstakes model, with the American Gaming Association also chiming in the mounting criticism against the sector, and trade group representative, Chris Cylke, calling out the model.

The Social and Promotional Gaming Association (SPGA), a newly established trade group set up to defend the interest of sweepstakes and social casinos, has been trying to normalize the dialogue about the industry, insisting that operators falling under this category were not illegal.

During a first video briefing in October, the SPGA attempted to dispel certain myths surrounding the sweepstakes business model and why it is not illegal. Nevertheless, tribal authorities and operators seem increasingly belligerent towards the sector.

Tribal interests should trump the sweepstakes model

According to Jonodev Chaudhuri, principal at Chaudhuri Law and former chair of the National Indian Gaming Commission, who was part of the recent New Normal episode, sweepstakes are already operating on tribal land, and the law is clear on protecting tribal interests.

Chaudhuri, however, admitted that enforcement options were somewhat limited. Tribal operators have insisted that sweepstakes undermine their business, and certain states have now been keen to oust such operators, issuing cease-and-desist letters in multiple jurisdictions, including Michigan.

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