Industry Luminary Chris Grove: 'Sweeps Casinos the Answer' to iGaming Mess in US

Chris Grove, co-founding partner at Acies Investments and a well recognized figure in the world of online gambling, believes sweepstakes casinos are the answer to the current iGaming logjam in the US.

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“Social sweepstakes is an answer to the online casino legislation logjam,” Grove told attendees during his State of the Union session at the NEXT Summit New York 2025.

Grove pointed out that bills to legalize traditional real money online casinos

“Online casino bills are not going anywhere. They aren’t. And I’ve been saying this for like the last six years, and it’s the thing I’ve been the most right about,” he noted. “Opposition to these bills is arguably growing, not receding.”

Grove emphasised that the unique “no purchase necessary to win” nature of online sweepstakes creates a softer product that appeals to consumers hesitant to identify as gamblers.

“Consumers like this product because it does not force them to make the same hard decision to self-identify as a gambler by putting down a credit card in order to play games for the chance to win a prize,” he said.

Just don't tell that to some states.

Michigan has been sending out cease and desist letters to various sweepstakes casinos over the year.

States like New York and New Jersey are looking to push through legislation that would prohibit sweeps casinos from operating.

Senator Joseph Addabbo, the Chair of the New York State Senate Racing, Gaming, and Wagering Committee, has announced his intention to rid the state of the likes of Chumba Casino and McLuck.

“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” stated Addabbo last month. “Many sweepstakes' operators are located offshore making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” Addabbo added. The Senator expressed that the sweepstakes operators are allowing individuals to pay for virtual coins and win more coins that can be redeemed for cash prizes. “The use of money to play a game and win more money is simple gambling and should be safely regulated,” Addabbo said.

When individuals play Sweepstakes Coins games, they can win more, and when they accumulate a required minimum amount of Sweepstakes Coins, they can be redeemed for cash prizes. The process of turning your winnings into prizes like gift cards or even cash prizes can differ from site to site but often involves a similar path. Ultimately, individuals are spending money to purchase coins in exchange for a prize.

“To close this loophole, I will work to ban or incorporate Sweepstakes Casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for iGaming as a safe, effective alternative for online casino enthusiasts,” Addabbo explained. “By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents,” Addabbo explained. “Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins,” added Addabbo. “I encourage my colleagues and the Governor to take action against unregulated sweepstakes casinos, while reconsidering the benefits of allowing legal iGaming operators to provide sanctioned services in a popular and ever-growing industry,” concluded Addabbo.

Just two weeks ago, New Jersey regulators confirmed cease and desist letters were sent out to various sweepstakes operators.

For his part, Grove urged regulated operators to consider supporting bills that formally regulate social sweepstakes “as an incremental step to what is otherwise stalled online casino legislation.”

“Doing the same thing over and over again and expecting a different result has a name,” he said. “I won’t say it’s quite insanity, but we should not be surprised if we continue to pursue the same approach with getting online casino done and don’t get online casino done.

“This is not the only alternative path, but it’s a path I think we as an industry need to seriously consider.”