Play’n GO Criticizes Sweeps, Vows to Never Supply Games to Such Operators

Play’n GO, a leading provider of casino content, has addressed the rapid growth of gaming alternatives, such as sweepstakes, also known as social casinos. The Swedish company took a firm stance against this type of gaming and vowed to never supply its games to such operators.

Sweepstakes Have Skyrocketed in Popularity

Sweepstakes are a fast-growing form of gaming that many have called gray sector gambling, or even illegal online gambling. Such platforms usually sport a dual-currency system where players can wager different types of digital tokens, some of which can be acquired for free.

Sweepstakes are enjoyed both by casual bettors who don’t care about the financial aspect and by people who play to win money. Since transactions do not use real money, sweepstakes are technically not considered gambling per the regulatory framework of most states.

Conversely, the fact that people can buy tokens with real money and then lose them has been reason enough for regulators and regulated industry stakeholders to slam sweepstakes as illegal gambling.

Play’n GO’s Leaders Firmly Rejected the Sweeps Sector

In its address, Play’n GO weighed in on the rapid growth of sweepstakes casinos, which “circumvent existing legal frameworks.” The company, which offers some of the best online gaming products available, took a stance against this practice.

Play’n GO’s co-founder and chief executive officer, Johan Törnqvist, said:

Sweepstakes casinos do not operate inside a regulated framework and that’s not something we support. Our commitment to regulated markets is absolute. We will never supply our games to sweepstakes casinos.

Johan Törnqvist, co-founder & CEO, Play’n GO

This sentiment was echoed by Shawn Fluharty, the company’s head of government affairs, who asserted that sweepstakes threaten regulatory gaming.

He added that many industry stakeholders have worked hard to achieve the current regulated market model, which seeks to protect players and contribute to good causes. Because of that, Fluharty praised the ongoing pushback against the sweeps sector.

Regulators across the US in particular are rightfully beginning to crack down on these unregulated operations. And 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.

Shawn Fluharty, head of government affairs, Play’n GO

Fluharty concluded that it is in lawmakers’ best interest to protect the regulated model and secure the revenues the regulated industry contributes.

Play’n GO Doesn’t Mind Leaving Money on the Table to Achieve Its Desired Market

Törnqvist and Fluharty’s statements align with Play’n GO’s vocal advocacy for increased regulation.

Play’n GO’s values were recently reflected in its recognition as a priority partner to German casino operator Tipico. Under this partnership, Tipico agreed to give Play’n GO’s games increased visibility and ditch all games by providers who also supply content to black market companies.

Play’n GO’s leaders said that they recognize that the company’s decision to refuse to supply content to black and gray market companies means that the company is “leaving a lot of money on the table.” The supplier’s chief commercial officer, Magnus Olsson, clarified that Play’n GO nevertheless remains firm in its decision since it wants to champion a better-regulated gaming industry.

We want to see a fully regulated and sustainable industry that protects players, promotes innovation, and ensures that we actually have an industry in the future.

Magnus Olsson, CCO, Play’n GO

Olsson praised companies such as Tipico for refusing to deal with companies serving the black market and ensuring a better future for the gaming industry as a whole.

The US Remains Divided on Sweeps

In the meantime, sweepstakes continue to face pushback from regulatory bodies in the US. The vertical experienced tremendous growth due to the pandemic and is currently offering entertainment to millions of Americans, despite not being a part of the same regulatory framework.

Companies, such as VGW and Stake.us have faced regulatory pressures in certain markets, including cease-and-desist orders and/or legal challenges.

Certain states, on the other hand, have advanced anti-sweepstakes bills, although many have rejected the proposed measures.

At the same time, US regulators and authorities remain divided on prediction markets, another betting alternative that has gained a lot of traction. Unlike sweepstakes, which are unregulated, prediction markets operated under the Commodity Futures Trading Commission’s (CFTC) jurisdiction, allowing them to offer their products nationwide.

Critics, however, have argued that this is unfair to the betting industry, which has to navigate a much more complex regulatory landscape.