The CEO of gaming content provider Play’n GO has vowed to never provide games to online sweepstakes casinos as scrutiny over that vertical’s regulatory standing continues.
Company founder Johan Törnqvist said in a statement posted on Tuesday that sweepstakes casinos “do not operate inside a regulated framework and that’s not something we support.
“Our commitment to regulated markets is absolute,” added Törnqvist. “We will never supply our games to sweepstakes casinos.”
Other suppliers have made similar statements in recent times. Light & Wonder CEO Matt Wilson said on an earnings call in February that while sweepstakes remains an unregulated vertical, they are “against our vision and strategy.”
But, while Wilson suggested that L&W would be “willing to explore” supplying to sweeps if those products become regulated and taxable in the future, Play’n GO has gone a step further by definitively stating it will never step into a role as a supplier to sweeps.
“Sweepstakes casinos threaten the regulated market model that many of us in the industry have worked so hard to achieve, which protects players first and foremost, and delivers much-needed revenue to jurisdictions,” added Play’n GO’s Head of Government Affairs Shawn Fluharty. “I can say with confidence that regulators have long memories – anyone doing business with sweepstakes casinos today will find it very difficult to do business in a future regulated market.”
The company’s Chief Commercial Officer Magnus Olsson acknowledged that the company is leaving plenty of money on the table by not providing games and services to online sweeps, but stressed that the firm is making a choice to stick with recognized regulated verticals.
Sweeps legislation dies in some states, potentially close in others
Play’n GO’s public declaration comes as legislation to define and ban online sweepstakes casinos continues to show momentum in some states.
Although bills that would have prohibited sweeps have fizzled out in Florida, Mississippi and other states in recent weeks, in the last couple of weeks, other proposals have moved forward.
Mostly notably, Montana is just a governor’s signature away from becoming the first state to pass a law that would crack down on sweepstakes casinos and any other offering that allows “consumers to place a bet or wager using any form of currency, and makes payouts of any form of currency.”
Several operators including VGW, the market leader behind Chumba Casino and Luckyland Casino, have already ceased doing sweeps business in the state.
Last week, the Louisiana Senate green-lit a bill and sent it over to the House. That came after the bill’s sponsor, Sen. Adam Bass, stated in a hearing that “so-called sweepstakes casinos claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling.”
A few days later, on Monday, May 5, a bill in Connecticut that would ban online sweeps as well as lottery couriers was passed out of committee. It is now awaiting a date to go before the full Senate floor.
Another bill currently bouncing between committees in both chambers of the New York legislature would ban sweepstakes and would allow the state’s gambling regulator to define what is or isn’t a “dual-currency system.”
