The Social Gaming Leadership Alliance (SGLA) has released a press release expressing “disappointment” over a state’s decision to push back on what it considers illegal gambling. Namely, the Minnesota Attorney General has come out swinging against “out-of-state and overseas operators” running sweepstakes casinos online and skirting established gambling laws.
Minnesota Attorney General Keith Ellison said on Wednesday (November 5) that he is demanding that 14 different sites cease activity in the state. He reasons that while sweepstakes casinos and similar sites might disguise themselves behind the virtual currency system in place, it’s still effectively illegal and unregulated gambling:
“Online platforms offering sportsbooks and casino games run by out-of-state and overseas operators may make it look as though online gambling is legal and safe in Minnesota, but let me be clear: it is not.”
“Trying to rebrand poker chips as virtual currencies does not change the fact that these online gambling operations are unlawful.”
SGLA takes aim at Minnesota with ex-congressman
The SGLA has reared its head as Minnesota took action against the sites in question. In its own press release, the SGLA argued that the AG’s office should “reconsider its mischaracterization of online social games with sweepstakes promotions.” Again, as with other states, it argues that sweepstake casinos are “lawful, free-to-play social games enjoyed by millions of Americans.”
Sweepstake casinos operate on a dual currency system. This can be bought in bundles, but oftentimes, there’s no protection for gamblers in place. As the sites also often operate out of state or offshore, it can also lead to players losing out over technicalities, with no backing of the state to fall back on.
Jeff Duncan, Executive Director of SGLA and a former Republican congressman, said:
“While the popularity of Social Plus games has attracted some bad actors, SGLA partners maintain strict age verification standards, industry-leading responsible gameplay tools, and best-in-class financial crime safeguards.”
However, despite their efforts, Minnesota lawmakers have found it difficult to purge the state of these “social casinos”. The AG points to the fact that it’s actively difficult to police companies that aren’t even located in the US.
Minnesota Department of Public Safety commissioner Bob Jacobson criticized the sweepstakes casino model in a press release:
“There’s no accountability, no protection for players and no way to know if the betting will be run fairly.
“Through our Alcohol and Gambling Enforcement division, we will work with the Attorney General to hold these operators accountable, protect Minnesotans and ensure the integrity of Minnesota’s gaming industry.”
Featured image: Lorie Shaull (Wikicommons), SGLA
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