ProgressPlay Enters U.S. Sweepstakes Market with New Platform Amid Regulatory Crackdown
The global gaming technology provider ProgressPlay is launching a new platform for the U.S. sweepstakes casino market, a bold move that comes at a time of intense and escalating regulatory pressure on the entire sector. The company is rolling out a “turnkey solution” for operators, built on the dual-currency model that has been the subject of recent legislative bans and legal challenges across the country.
A “Turnkey Solution” for a Turbulent Market
ProgressPlay is marketing its new offering as a “complete commercial ecosystem” for brands looking to enter the sweepstakes space. The platform is built around a dual-currency engine, the standard model for the industry, which separates recreational-play “Gold Coins” from “Sweeps Coins” that can be redeemed for real-money prizes.
The company is also touting the platform’s advanced technology and compliance features, including military-grade geolocation tracking and instant age verification. These are key features in a market that has been heavily criticized by the traditional gaming industry for what it sees as lax consumer protection standards.
“This is more than a technological innovation; we are rewriting the rules for operator success in sweepstakes gaming,” said ProgressPlay CEO Itai Lowenstein.
Navigating a Hostile Regulatory Environment
The timing of ProgressPlay’s entry is notable, as it comes amid a coordinated and increasingly aggressive crackdown on the sweepstakes model.
- In California, a bill that would ban sweepstakes casinos is now on the governor’s desk after passing both houses of the legislature.
- New Jersey recently enacted its own law that specifically targets the dual-currency model.
- New York’s Attorney General has issued cease-and-desist letters to 26 different sweepstakes sites.
- Other states, including Connecticut and Montana, have also passed laws criminalizing the activity.
This wave of regulatory action has been driven by a growing consensus among lawmakers that sweepstakes casinos are an end-run around state gambling laws, a position heavily promoted by the American Gaming Association and its members.
A Calculated Risk and a Potential Opportunity
ProgressPlay’s move can be seen as a calculated risk. While the regulatory environment is undeniably hostile in some states, the U.S. sweepstakes market remains a multi-billion dollar industry. The company may be betting that it can carve out a niche by providing a more compliant and technologically advanced solution for operators who are willing to navigate the complex legal landscape.
The platform will launch with content from several major iGaming suppliers, including BetSoft, Pragmatic Play, and Spinomenal. However, the inclusion of a name like Pragmatic Play comes with a significant caveat. That company recently announced it was pulling its games from all U.S. sweepstakes operators in response to the very regulatory pressures that ProgressPlay is now wading into.
ProgressPlay, which has been providing iGaming solutions since 2012, is diversifying its business in the wake of a recent fine from the UK Gambling Commission. Its new U.S. sweepstakes platform is a major part of that new strategy.
Recommended