US lawmakers reject bills targeting digital sweepstakes

Legislative Efforts to Restrict Sweepstakes Gaming Falter Across the U.S.

In recent months, initiatives aimed at regulating sweepstakes-style promotional gaming have encountered significant challenges across multiple U.S. states. In Arkansas, Maryland, and Mississippi, proposed legislation intended to curtail this form of gaming has either been withdrawn or stalled in legislative proceedings.

Specifically, Arkansas House Bill 1861 was retracted this past week, while Maryland Senate Bill 0860 failed to advance to a vote prior to the legislative deadline. Similarly, a comparable proposal in Mississippi also faltered earlier this year.

The Social and Promotional Games Association (SPGA) reports a growing reluctance among lawmakers to endorse bills perceived as excessively broad or lacking substantial evidence. A representative from the SPGA remarked on the underlying issues with these legislative efforts.

“These bills share a significant flaw: they lack factual support and foundational evidence,” the spokesperson stated. “Legislators are consistently rejecting attempts to criminalize a form of safe, digital entertainment that is enjoyed by millions of adults across the United States.”

For instance, Maryland’s proposed legislation sought to ban sweepstakes gaming entirely but failed to present any data indicating consumer harm or connections to gambling addiction. In a similar vein, the Arkansas bill aimed to concentrate control within licensed casinos while limiting the dual-currency features prevalent in many social games.

Additionally, the SPGA has expressed concerns regarding the potential unintended consequences of such legislation. They suggest that restrictions could inadvertently disrupt loyalty and rewards programs utilized by airlines, hotel chains, and prominent consumer brands.

“When legislation threatens the everyday perks provided by airlines, hotels, and your favorite coffee shop, it becomes evident that these proposals are not only misguided—they’re dangerously disconnected from reality,” the SPGA articulated.

The SPGA continues to monitor further legislative movements across the U.S., including Louisiana’s Senate Bill 181, introduced earlier this year. In April, the association warned that the bill’s vague and expansive language could wrongly categorize established promotional reward programs as gambling. They cautioned that such misinterpretations could adversely affect technological investments, stifle digital innovation, and induce legal ambiguity.

Under current U.S. federal law, there exists a crucial distinction between promotional sweepstakes and gambling, which stipulates that entry must be free and not contingent upon any purchase. The SPGA has urged policymakers to engage in constructive dialogue with industry stakeholders before advancing any regulatory modifications, reinforcing the importance of informed legislative practices in this rapidly evolving sector.