Who Won The G2E Sweepstakes Battle?

Sweepstakes invaded G2E this year, with supporters and detractors laying out their case for or against the sweepstakes model. But, did anyone win?

No matter where you reside in the gambling sector, it’s impossible to avoid sweepstakes.

In my G2E preview, I wrote:

“Identifying the Unofficial Topic: I always say that a new theme runs through just about every session, and I suspect that this year, that theme will be sweepstakes and other gray games.”

That was one of the easiest predictions of my career.

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How pervasive was sweepstakes at G2E? As Davis Catlin posted on LinkedIn:

Or, as Victor Rocha remarked on X:

As an aside, Victor didn’t seem to be a fan (so much so that he found himself in agreement with Daniel Wallach) and hinted at California tribes pushing to shut the sweepstakes sites down:

The message I got was, “We’re going to keep doing it, so do something if you can.” Challenge accepted.

“On my webinar next Wednesday, CNIGA Chairman James Siva and I will be discussing DFS 2.0 and sweepstakes gambling in California. I think the industry might want to tune in.”

G2E SWEEPS2E

What was interesting about sweepstakes discussions funneling out of G2E was the mix of support and opposition. It was as if an epic battle for the future of Middle Earth's US online gambling was taking place, with Sweepstakes playing the role of the Ring of Power. This reference isn’t to say the sweepstakes side is the baddies (it's just a silly LOTR reference); rather, it highlights the seriousness of the fight and one side’s determination to destroy it.  

One of the most anticipated and contentious discussions at G2E was a sweepstakes panel moderated by Scott Longley, EIC of Earnings+More and Compliance+More, and featured:

• Michael Pollock, Senior Policy Advisor to Spectrum Gaming Group

• Matt Kaufman, Managing Director of Digital & Interactive Gaming at Eilers & Krejcik Gaming

• Michelle Cohen, Partner, Ifrah PLLC

• John Lessnau, Manager, Michigan Gaming Control Board - Criminal Investigations Section

• Howard Glaser, Global Head of Government Affairs & Legislative Counsel, Light & Wonder

Per Scott Longley’s Compliance+More newsletter, Lessnau, whose state has issued cease-and-desist letters to sweepstakes operators, said, “When boiled down, it is 100% right to say sweepstakes are gambling.”

Glaser added that “every regulator who has looked at it has seen that it is gambling, and under the laws of the state, it’s unregulated, unlicensed, untaxed, and illegal. No regulator who has looked at it has found otherwise… They are very uniform in saying, ‘If you pay money for a chance to win money, that is gambling.’”

Longley had a view from the stage, but SBC America’s Jessica Welman sat in on the panel discussion and noted that while Glaser was delivering a “sermon,” she gave the W to the pro-sweepstakes side:

Eilers & Krejcik Gaming (a newsletter sponsor) also held a briefing on the sweepstakes sector, where it described the size of the sweepstakes market, which caught the attention of perhaps the one person more passionately opposed to sweepstakes gaming than Glaser, Carlton Saffa, the CMO of Saracen Casino Resort in Arkansas:

Also during G2E week, the Social and Promotional Gaming Association (SPGA) released a video briefing “to address the growing attention and interest in how the social casino with sweepstakes prizing functions and why millions of players across America enjoy this safe and legal form of entertainment.”

Chris Grove moderated the 37-minute briefing, featuring the aforementioned Matt Kaufman and Jon Kaplowitz, CEO and Co-Founder of Clubs Poker.

Grove started the discussion by saying that while the category has many names, he prefers to call things what they are, which, in this case, is a “classic social model with a sweepstakes prizing layer on top.” It doesn’t really roll off the tongue like “sweepstakes” does, but point taken: If you remove the sweepstakes layer, you are left with a social casino site that virtually every casino offers and a dime-a-dozen in your preferred app store.

Grove noted the increased interest, which includes how the model functions and “misinformation” on how consumers engage with sweepstakes sites.

Kaufman pointed out that casinos offer sweepstakes (as do many other businesses), and every car giveaway or vacation is a promotional prize used to promote their underlying business. The SPGA argues that the underlying business is social casinos, a multi-billion-dollar industry.

There is also a parallel debate on social media – the court of public opinion.