SPGA Celebrates Legislative Wins as Sweepstake Game Bans Fail in Multiple States

The Social and Promotional Games Association (SPGA) is celebrating a major victory for American consumers, as recent legislative attempts to restrict or ban social and sweepstakes games have failed in three states. With growing momentum behind the rejection of these bills, the SPGA has hailed these moves as a sign of increasing legislative skepticism toward overreaching proposals.

Legislative Failures Across Multiple States

This week, a similar outcome in Mississippi, with the defeat of an earlier bill aimed at restricting sweepstakes-style games. The SPGA has pointed to these swift defeats as evidence of lawmakers rejecting broad, unsubstantiated proposals that would harm millions of American consumers who enjoy digital entertainment.

“These bills shared the same fatal flaw: no facts and no foundation. Legislators are consistently rejecting efforts to criminalize safe, digital entertainment enjoyed by millions of adults across the U.S.,” stated a spokesperson from the SPGA. The association’s statement reflects growing concern over poorly defined legislative measures that threaten consumer choice and economic innovation.

Maryland’s SB0860 and Arkansas’s HB1861: Flawed Proposals

Maryland’s SB0860, which aimed to prohibit sweepstakes gaming outright, failed to provide any data ing claims of consumer harm or links to problem gambling. Similarly, Arkansas’s HB1861 would have restricted dual-currency online gaming and handed exclusive control over these games to licensed casino operators. Both bills died without a vote in the legislative process.

These bills were criticized for not only failing to address the real needs of consumers but also for their potential to disrupt popular rewards programs, such as those offered by airlines, hotels, and coffee shops. “When legislation threatens everyday perks from airlines, hotels, and your local coffee shop, it’s clear the bills aren’t just misguided, they’re dangerously out of touch,” added the SPGA spokesperson.

The Impact of Legislation on the Broader Economy

The proposed bills were not only problematic for consumers but also posed a serious threat to the entire ecosystem surrounding promotional gaming. The SPGA highlighted that these legislative actions could harm game developers, payment processors, software vendors, banks, and many others involved in the industry, putting thousands of jobs at risk and stifling innovation.

“We’re continuing to fight for the millions of Americans who enjoy these games responsibly on their phones,” the SPGA said. The association remains committed to advocating for smart, modern regulation and calling out performative legislation that is more focused on generating headlines than solving real issues.

Continuing Legislative Efforts and Industry Concerns

Despite these recent victories, the SPGA continues to monitor similar bills across the U.S. One such proposal is Louisiana Senate Bill 181, which was introduced earlier this year. The SPGA has warned that the broad language in this bill could misclassify long-standing promotional reward schemes as gambling, potentially creating legal ambiguity and negatively impacting the technology and innovation sectors.

Currently, U.S. federal law requires that promotional sweepstakes offer free entry with no purchase necessary, distinguishing them clearly from regulated gambling. The SPGA has called for further consultation with industry stakeholders before any changes to this regulatory framework are made.

Source:

Sweepstakes Win Streak: Third Anti-Innovation Bill Dies This Week as Arkansas and Maryland Pull the Plug, thespga.org, April 9, 2025.