ProgressPlay Presents Sweepstakes Casino Platform, Going Against the Grain

At a time when everyone is steering clear of sweepstakes casinos and everything associated with them, ProgressPlay is doubling down. The company lit the fuse at Stand B410 of SBC Summit Lisbon (September 16-18), showcasing a sweepstakes platform that promises fast deployment, industry-leading providers, and integrated compliance tools for partners.

The platform will be using a dual-currency model (Gold Coins and Sweeps Coins) and come bundled with compliance tools, including geolocation, age verification, and localized hosting. However, it also comes at a time of a US crackdown on sweepstakes casinos, where more and more states are taking full-frontal legal assault against them.

ProgressPlay Sweepstakes Platform

ProgressPlay describes the new sweepstakes system as a turnkey solution with trinkets like geolocation and age verification, localized hosting, automated compliance tools, flexible content frameworks, and fast deployment for partners.

The company seems to be betting that compliance-first design is the way forward. By baking in these tools, it hopes to provide a solution that operators can use without risking shutdowns or fines.

So far, the software providers have been on board, with over 40 casino providers already on board. Some of the providers already listed include BGaming, Betsoft, Hacksaw Gaming, Wazdan, Evolution, and all its subsidiaries. Not Pragmatic Play, though, despite being listed earlier on the website.

Sweepstakes Casinos in the US

In contrast to the optimism at Stand B410, there’s a big axe looming over the sweepstakes model of gambling. The state of sweepstakes casinos is a contested topic in the US, where several states have either banned them entirely or are in the process of doing the same.

For those not in the know, sweepstakes casinos operate on a no-purchase-necessary and a double-currency model, Gold Coins are used for entertainment purposes only, while Sweeps Coins can be redeemed for real cash. This allows them not to be labeled as gambling sites, and, as a result, sweepstakes casinos can operate in states and counties where online gambling is still illegal, cutting into the profits in states where it is.

Recently, however, they’ve come under increased scrutiny and legislative hammering by several US states. Montana, Connecticut, and New Jersey have outright banned them from their borders, while the likes of Delaware, New York, and Louisiana have all taken action. They’ve regularly issued cease and desist letters to many of the sweepstakes brands operating in those states, actively discouraging new ones from opening.

Even some software providers, Pragmatic Play chief among them, are actively withdrawing from all sweepstakes platforms in the States. What began as Evolution’s and Pragmatic Play’s retreat from the Stake.us in California, turned into a nationwide exodus from sweepstakes casinos for several operators.

Yet despite the legal headwinds, ProgressPlay believes that it can turn regulatory complexity into a competitive advantage. The inclusion of strong compliance tools, geolocation, age verification, and localized hosting is intended to help operators avoid the pitfalls that have beset some rivals.

ProgressPlay’s £1 Million Fine

But for that to happen, the company needs to avoid pitfalls of its own.

An industry behemoth that runs over 130 websites, ProgressPlay recently received a hefty £1 million fine from the UK Gambling Commission (UKGC) for failing to comply with its Anti-Money Laundering (AML) and player protection obligations. It’s the company’s second fine in three years, having previously failed on the same test in 2022.

The latest penalty casts a shadow over ProgressPlay’s push into sweepstakes. The UKGC investigation revealed a pattern of subpar risk assessments and ineffective monitoring of high-spending and potentially vulnerable players.

The company has since claimed to have implemented sweeping reforms, but the repeat nature of the violations raises questions about whether those changes go far enough.