According to experts, sweepstakes casinos will see a rapid growth in popularity and numbers which will bring the need for proper regulation and educating lawmakers on the industry.
Experts Predict Growth in Sweepstakes Casino Numbers
NEXT Social Casino Summit was recently held in New York with many experts sharing predictions for the future of the industry, such as the one saying sweepstakes operators will double in the next year or two. One of the supporters of this claim is Nadiya Attard, CCO of Elantil, who emphasized sweepstakes gaming is set to see rapid expansion.
According to Attard, who spoke on a panel alongside Jason Rosenberg, CEO of American iGaming Solutions, and Jon Kaplowitz, CEO and co-founder of Clubs Poker, increased competition will further drive the sector’s growth. European entrants are a big factor in this as currently there are between 50 and 60 casino sweepstakes operators active.
Rosenberg supported Attard’s statements by underlining the shift in attitudes toward the sector. He explained that in the past it was hard to find service providers willing to engage with social casino operators. According to him, in the beginning, it was hard to have conversations with payment processors and content providers who wanted to get into sweepstakes. However, he said that now the process is easier and deals are made faster. Rosenberg also predicted that tribal gaming operators will begin to invest in the sweepstake space as such conversations are already happening.
Experts Call for Proper Regulation
Sweepstake casinos have often been the subject of much discussion when it comes to regulation, with many US states making moves to ban the business model altogether. They have often cited concerns over consumer protections and lost tax revenue.
However, Kaplowitz pointed out how important it is to educate US lawmakers on the nuances of the industry to avoid potential regulatory roadblocks. According to him, the sweepstakes casinos will not be fully banned in the country, but the next six to 12 months will be crucial. He also said that the industry should pull their efforts together to get regulatory and legal clarity.
Kaplowitz proposed that operators will likely enhance responsible gambling practices, along with Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, in order to address regulatory concerns. He also highlighted the need for innovations in the industry, forecasting that future sweepstakes casinos could incorporate features that make them resemble more conventional digital entertainment platforms.
He finished by saying that it’s unlikely that lawmakers will invest the time to learn the nuances of the industry. Therefore, it falls to the industry itself to ensure sweepstakes casinos don’t just replicate real-money gambling but also develop unique mechanics that distinguish them.
