SPGA claps back at Arkansas' proposed sweepstakes ban

• SPGA mounts opposition against the pair of bills put forward in Arkansas to ban sweepstake casinos
• The association argues that should the bills become law, they would grossly limit competition and innovation
• The fear of sweepstakes is misplaced and the sector does not target nor offer real money gambling, the SPGA insists

The Social and Promotional Games Association (SPGA) has issued a public statement shared via email in which it opposed HB 1861 and SB524 in Arkansas.

The legislation is following similar attempts by New York, New Jersey, Mississippi, and Maryland to prohibit sweepstakes gaming altogether, which the SPGA has called "reckless."

SPGA faces new challenges in Arkansas

Essentially, the sister bills are echoing anti-competitive efforts spearheaded by "entrenched casino interests," the SPGA noted. In doing so, these legislative measures threaten business, and innovation as well as deny consumers the freedom to choose their preferred platform and product.

The opposition against sweepstake casinos has run on similar grounds in Arkansas as it has elsewhere. Detractors of the sector argue that through the use of "dual-currency," sweepstake platforms have been running an unregulated gaming product plain and simple.

The sector has denied such claims and argued that the sweepstakes model has been established in historical precedent and there was nothing roundabout in the business model. The SPGA has maintained that the same model has been used by some of the largest companies in the United States, including Coca-Cola, Burger King, Amazon, American Airlines, Pepsi, and many others.

Moreover, the sector has been fully complying with all existing laws, the SPGA noted in a statement pushing back against the pair of bills in Arkansas. The association added:

"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."

Opposition against sweepstakes mounts in the United States

The SPGA has similarly cited data from Eilers & Krejcik Gaming in which it has refuted another argument mounted against the industry – that sweepstakes social casinos cannibalize on traditional real money casinos. According to the report, this is simply not true, based on evidence from Michigan.

In fact, sweepstakes can have contributed to the growth of the iGaming industry in Great Lakes State. In conclusion, the SPGA has urged lawmakers to not act hastily and reject the bills, but legal momentum against the sector is already building up all over the country.

Image credit: Unsplash.com