The Future of Sweepstakes and iCasino Regulation: A Transatlantic Perspective

Whether discussing sweepstakes in the U.S. or iCasino regulation in France, it is evident that lobbying plays a critical role in shaping the future of key gaming verticals across both sides of the Atlantic. From contentious rhetoric to evolving regulations, the landscape of gaming is increasingly being defined by the maneuvering of lobbyists and stakeholders whose interests do not always align with those of consumers.

U.S. Sweepstakes Under Fire

In the U.S., the debate surrounding sweepstakes is marked by a high-stakes power struggle. Stakeholders opposed to sweepstakes operators often express their negative sentiments vocally, reflecting strong animosity toward those associated with this vertical. A particularly prominent figure in this discourse is Victor Rocha, editor of Pechanga.net and a member of the Pechanga Band of Luiseno Indians. Rocha’s recent posts on social media exemplify the highly charged language being used against sweepstakes operators. While opinions may vary on the appropriateness of such language, it undoubtedly showcases the intensity of the criticism.

Adding further complexity, the Social and Promotional Gaming Association (SPGA) represents numerous companies involved in this evolving market. A spokesperson for the SPGA emphasized that its members operate under qualified legal opinions and comply with state-level sweepstakes regulations. This assertion highlights an important nuance: while critics often invoke terms like "loopholes" and "unlicensed," the activities of these operators are more effectively classified as "non-illegal," challenging the notion that they are operating unlawfully.

This friction is exacerbated in an environment where regulated operators also offer various gambling-adjacent products that may not adhere to licensing norms across all jurisdictions. The SPGA articulately terms this phenomenon, stating, "‘unlicensed’ or ‘unregulated’ should not be conflated with ‘illegal’," reinforcing their commitment to transparency and legitimacy.

The ongoing debate is expected to unfold over the coming months. The SPGA continuously seeks to provide research, educational resources, and clarity regarding sweepstakes operations, differentiating their purpose from that of their critics who may not disclose their agendas.

France’s Groundbreaking Step Toward iCasino Regulation

On the other side of the Atlantic, France has taken significant steps towards the regulation of its online casino market—a milestone welcomed by iGaming executives. France stands out as the last major Western European country without a regulated online casino environment. The move comes as somewhat of a surprise, happening sooner than many industry observers anticipated.

With Prime Minister Michel Barnier aiming to improve economic stability amidst rising debt levels, the push toward regulation may not be as unexpected as it seems. The necessity for increased revenue is apparent, and the government’s proposal for an open market from the get-go reflects a progressive approach.

However, this endeavor is met with resistance from land-based casinos in France, which seek to limit online operations to tether them to physical venues for a stipulated period. This juxtaposition between physical and online operators underscores a fundamental debate on market size versus regulation—a tension embodying the balance between consumer choice and established interests.

The Necessity for Revenue: A Common Thread

The animating force behind these developments on both sides of the Atlantic is the urgent need for revenue. France’s historical struggle with high debt levels mirrors similar financial pressures in the United States. Like France, many U.S. states are poised to consider online casino regulations as a means of bolstering their economies post-pandemic.

Brandt Iden, Vice President of Government Affairs for Fanatics Betting & Gaming, noted that as COVID-19 subsidies dwindle, states will increasingly turn to online gaming as a silver lining for tax revenue. This shift echoes the rapid legalization of sports betting across numerous jurisdictions in 2020 and 2021. The wash of interest sparked by homebound consumers craving entertainment has drawn attention to the considerable financial benefits that online gambling can yield.

Data illustrate that while sports betting garners significant revenue, online casinos represent an even more lucrative venture. For instance, in Michigan, online casinos generated a whopping $6.4 billion in gross gaming revenue from 2020 to 2024, compared to $1.5 billion from sports betting within the same timeframe. Similarly, Pennsylvania’s online casinos have outpaced sports betting revenues markedly.

The alarming financial potentials of online casino revenues could catalyze swift regulatory changes in populous states, creating an urgent environment where lobbying, advocacy, and competitive interests converge.

Conclusion: Lobbying’s Pivotal Role in Shaping Regulatory Futures

In both the U.S. and France, the role of lobbying is paramount in determining the future of gaming regulations, especially in emerging verticals like sweepstakes and online casinos. The juxtaposition of strong opinions, economic necessity, and regulatory calls will undoubtedly define the landscape for consumers and operators alike. As stakeholders on both sides of the Atlantic navigate these turbulent waters, clarity, transparency, and a commitment to responsible gaming will be essential to foster a fair and flourishing market for all participants.