New AGA Policy Takes Aim at Sweepstakes-Based Sportsbooks

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Key Takeaways
- Sweepstakes Sportsbooks are available in 46 states
- The sweepstakes sportsbook industry is currently unregulated
- The AGA policy raises concerns over the fairness of sweepstakes sportsbooks
Sweepstakes sportsbooks’s current freedom could soon be reigned in across the US.
The American Gaming Association has released a new policy strongly opposing sweepstakes-based gambling sports betting. The group lobbies for the gambling industry while also promoting responsible gaming, and its new policy aims to achieve the latter.
While their new policy doesn’t affect sweepstakes-based sportsbooks currently, it signals that they intend to wield their influence to reign in the unchecked industry.
Sweepstakes Sportsbooks Currently Unregulated
The driving reason behind the new AGA policy is to end a legal loophole in the way sweepstakes sportsbooks currently operate. The group argues that this allows the operators to work without regulations or oversight. That means they do not have requirements to offer fair gaming, meaning bettors could be at risk.
These controversial sportsbooks can operate in 46 states because they do not take real money bets. Instead, players buy packs of coins to place wagers on events. The coins cannot be withdrawn for cash but can be redeemed for prizes.
This has made sweepstakes sportsbooks incredibly popular, especially in states where online sports betting is not legal.
AGA Also Protecting Regulated Sportsbooks
While the AGA’s new policy is centered around responsible gaming and protecting customers, that is likely not their only goal.
The group often works on behalf of regulated sportsbooks, which have been losing business to sweepstakes casinos. Some of those operators have publicly called for an end to the unregulated industry, influencing the AGA to take action.
Crackdown On Unregulated Sportsbooks Continues
While no legal action has been taken against sweepstakes sportsbooks yet, we expect to see that soon. State regulators across the country have begun to crack down on offshore sportsbooks, which have also existed in a legal grey area that is rapidly shrinking.
Bovada, one of the largest operators in the world, has been the most popular target for regulators. They have received many cease-and-desist letters to stop operating in markets and have complied with each.
With the AGA officially taking a stance on the controversial industry, expect regulators to begin a similar crackdown soon.
Michael is an avid sports fan and a veteran bettor from Milwaukee, Wisconsin. He learned the trade from his grandfather in Las Vegas as a kid. As an adult, Michael started picking games for a small sports betting site and has built it into a career. His experience allows him to provide tips and information to help other bettors improve their game. Michael cheers for all Wisconsin pro teams, the Arizona State Sun Devils (his alma mater), and the Ottawa Senators. He specializes in baseball betting but has extensive experience in football, basketball, and hockey. When he isn’t pouring over stats, he’s spending time with his two young children or hiking and enjoying the outdoors.
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