AGA Pushes Back Against Sweepstakes-Based Wagering Models
The American Gaming Association (AGA) has strongly opposed the growing popularity of sweepstakes-based wagering models, as it believes they pose risks to consumers and undermine regulated gambling markets.
Regulatory Loopholes and Lack of Oversight
In a newly released policy statement, the AGA expressed concerns that sweepstakes operators are skirting state gambling laws, leading to potential loss of tax revenue and consumer protections.
According to the AGA, sweepstakes operators often operate outside of traditional state regulatory frameworks, allowing them to bypass oversight designed to ensure responsible gaming and fair play.
The AGA highlighted that these operators frequently lack responsible gaming protocols and do not offer self-exclusion options for consumers, which are critical components of regulated gaming environments.
“The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market,” the AGA’s policy statement said.
The organization believes that the absence of proper regulation diminishes the economic benefits typically derived from legal gambling, such as tax contributions and investment in local economies.
The Dual-Currency Model Debate
A key point of contention is the dual-currency model used by sweepstakes operators. This allows players to participate for “free” or purchase virtual currency to enhance gameplay, with the potential to win cash prizes.
Operators argue that the use of virtual currency falls under sweepstakes law, but the AGA is concerned that this format is being exploited to offer real money gambling without adhering to state regulations.
The AGA is urging state regulators and lawmakers to investigate sweepstakes casinos and sportsbooks to ensure compliance with state laws.
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