Efforts to pass laws restricting sweepstakes-style promotional gaming have stalled across several U.S. states, with proposed bills in Arkansas, Maryland, and Mississippi either withdrawn or left untouched.
In Arkansas, House Bill 1861 was formally pulled this week, while Maryland’s Senate Bill 0860 failed to make it to a vote before the legislative deadline. Mississippi had already seen a similar proposal fizzle out earlier this year.
According to the Social and Promotional Games Association (SPGA), lawmakers are increasingly hesitant to back bills they view as overly broad and lacking in evidence.
A SPGA spokesperson mentioned:
These bills shared the same fatal flaw: No facts and no foundation. Legislators are consistently rejecting efforts to criminalise safe, digital entertainment enjoyed by millions of adults across the US.
Maryland’s bill aimed to ban sweepstakes gaming altogether, but didn’t offer any data showing harm to consumers or ties to gambling addiction. In Arkansas, the proposed law would have handed exclusive control to licensed casinos and restricted the dual-currency features used in many social games.
The SPGA also raised concerns about unintended consequences, noting that such legislation could disrupt loyalty and rewards programs used by airlines, hotels, and popular consumer brands.
The SPGA added:
When legislation threatens everyday perks from airlines, hotels and your local coffee shop, it’s clear the bills aren’t just misguided – they’re dangerously out of touch.
The SPGA is keeping a close watch on similar legislative developments across the U.S., including Louisiana’s Senate Bill 181, which was introduced earlier this year. In April, the association cautioned that the bill’s vague and wide-reaching language could mistakenly categorize well-established promotional reward programs as gambling. Such a move, they warned, could negatively impact tech investment, hinder digital innovation, and create legal uncertainty.
Currently, U.S. federal law differentiates promotional sweepstakes from gambling by requiring that entry be free and not tied to a purchase. The SPGA has urged lawmakers to engage in more dialogue with industry stakeholders before moving forward with any regulatory changes.
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