SGLA pushes back against Illinois' sweepstakes crackdown

• SGLA has responded to an ongoing push against sweepstakes social casinos in Indiana
• Illinois has issued 65 cease-and-desist letters against sector companies
• Illinois is not the only state to pursue similar action against the sector

The Social Gaming Leadership Alliance (SGLA) has responded to a recent enforcement action by the state of Illinois targeting the sweepstakes sector.

The SGLA’s Managing Director, Sean Ostrow, has released a critical statement of the 65 cease-and-desist letters issued by the state’s gaming regulator, the Illinois Gaming Board, against operators of sweepstakes social casinos.

In a statement, Ostrow said that there was a mismatch between the IGB’s stated goals and actions:

"The fact that responsible Social Plus games operators were mentioned alongside illegal offshore gambling websites indicates a fundamental misunderstanding by the Illinois Gaming Board of the nature of our industry and the very real consumer protections SGLA operator partners implement."

Ostrow argued that sweepstakes social casinos are based on an established historical precedent, and they meet strict responsibility and consumer protection guidelines.

"Our operators implement robust age verification, responsible social gaming tools, and comprehensive safeguards on Social Plus games, setting us apart from unregulated, illegal gambling sites," he added.

Ostrow was tapped by the SGLA only recently, as the trade group seeks to oppose an ongoing crackdown against the sector.

Illinois recently issued 65 cease-and-desist letters to sweepstakes operators, ordering them to end all business operations in the state that involve the use of dual currency, which consumers may use to cash out real money awards.

Effectively, the IGB is equating the sweepstakes model to real money gambling, specifically in the instances where consumer smay use this specific currency and redeem it for monetary rewards later on.

IGB’s statement simply read: "The letters notify recipients that the IGB has reason to believe they are offering games of chance over the internet that award money or other things of value without the required licensure, in violation of Illinois criminal law."

Among the casinos targeted by the state are such prominent sector names as Stake.us, Global Poker, and Chumba Casino, largely seen as the largest and most impactful companies.

IGB insists that these websites are offering online casinos without a license, and is open to bringing non-compliant companies to court. Offenders, the IGB argues, could face civil or criminal penalties, or a mixture of both.

Illinois is not the only jurisdiction in the United States to have targeted sweepstakes operators, with Indiana nudging along an anti-sweepstakes legislation of its own.

California has similarly opted to outright ban the sector, enforcing the rules with the governor’s signature.

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