Will Rebranding "Sweeps Casinos" Convince U.S. Lawmakers?

For several months now, sweepstakes or "sweeps" casinos have been under a lot of scrutiny. In as many as 10 states, laws have been passed to make access to these websites illegal. Above that, another 10 or so states are considering similar legislation.

It does not appear that sweepstakes casino owners are going to go down without a fight. The Social Gaming Leadership Alliance (SGLA) is taking steps to rebrand said online casinos as "Social Plus" casinos. It's being done to reshape the perception of the industry and highlight the industry's move towards more responsible practices.

According to Sean Ostrow, SGLA’s managing director, the new terminology is a better representation of what the iGaming sites are really all about. He wanted to point out that Social Plus casinos are social sites where people can interact while playing "free" online casino games of chance. Along with the rebranding effort comes a promise to institute more stringent consumer protections while improving efforts to prevent minors from getting access to these platforms.

Will This Ploy Work?

The industry hopes the rebranding ploy will satisfy lawmakers across the country. However, it's not clear if it is going to work. Why? There's that pesky issue related to customers being able to win actual prizes from their gaming efforts.

Remember, all sweepstakes casinos start with social gaming that is supported by the offering of "free gold coins" that can be used to play online casino games of chance. That's not an issue because winners get nothing more than gold coins that they can use to continue gambling. Where the line gets blurred is when these online social casinos also offer access to "sweeps coins" that can be used to enter sweepstakes drawings or gaming contests. The fact that the winners of these drawings or contests get real prizes is where the line of gambling seems to get crossed. That line is certainly crossed when customers are permitted to purchase sweepstakes coins to enhance their chances of winning.

As for the typical prizes a customer might win, depending on the site, that could include:

• Gift cards to restaurants or big box department stores


• Electronic devices - laptops & smartphones


• Free vacation and travel


• Cash
  

It's noteworthy that search engines like Google have updated their advertising algorithms to treat social casino terminology as online gambling content. Such content is held to stricter certification standards. The SGLA appears to be working with search engines to help improve allowable traffic.

At the end of the day, these efforts are intended to influence lawmakers regarding the intent behind sweepstakes casinos. Legislators in several states have already banned popular social casino sites like Stake.com and VGW. This is likely being done to protect Indian casinos and licensed online casinos that are operating in states like Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.

For now, online casino gambling enthusiasts will be paying close attention to the laws that are being presented. Online casinos are big business, too big to be ignored by the masses.