The ultimate guide to social casinos

Social gaming site Playstudios has just announced that it will enter the United States market before the end of the year, and just ahead of this particular expansion in the US, its CEO, Andrew Pascal, answered questions about the changing regulatory and legal landscape in the country.

Social gaming developer Playstudios is preparing to launch a new sweepstakes platform featuring casino-style gaming across the "full footprint of qualified US states" later this year. The move, announced during the company's Q2 earnings call, positions Playstudios to compete in a sector that is both growing rapidly and facing increasing regulatory scrutiny.

Chief Executive Officer Andrew Pascal used the investor presentation to outline the company's market strategy, address legal hurdles, and explain how proprietary content will help set its offering apart.

Leveraging proprietary content to compete

Founded in 2011, Playstudios has a long history in social gaming, with operations rooted in California, Texas, and Nevada. Pascal emphasized that the company's experience and in-house game library will be key advantages in the competitive sweepstakes casino market.

"One of the things that we're investing in is leveraging our vast library of proprietary game content," Pascal said. "We know how social mechanics and progression systems drive deeper engagement and make for a more compelling experience. By introducing more of our own proprietary content, we're going to further differentiate ourselves from our peers."

Playstudios' sweepstakes platform will enter a market currently dominated by operators like VGW (LuckyLand Slots, Chumba Casino, and Global Poker) and ARB Interactive, with Modo.us. The company is also a member of the Social Gaming Leadership Alliance, a coalition aimed at promoting responsible and sustainable sweepstakes operations.

State-by-state strategy in a changing legal landscape

Despite optimism about the platform's launch, Pascal acknowledged that the sweepstakes market is far from stable. This year, New Jersey, Montana, New York, and Connecticut have already banned sweeps casinos, while California legislators are considering similar restrictions. States including Mississippi, Louisiana, Arizona, and Maryland have issued cease-and-desist letters to operators.

Pascal explained that Playstudios will take a cautious, data-driven approach to entering and investing in each market. "Our approach is probably not all that different from most everybody else in the space, which is that we look at the market overall on a state-by-state basis," said Pascal. If a market we think is reliable becomes higher risk, we'll moderate our spend there. It's dynamic and it will be actively managed, he added. This flexible approach means marketing investments will rise or fall depending on the regulatory climate in each state.

Commitment to legitimizing sweepstakes gaming

Pascal also positioned Playstudios as an advocate for maintaining the legality of sweepstakes gaming in the United States. "We intend to be very active in trying to help bring more credibility and legitimacy to this opportunity," noted Pascal. "We're employing sweepstakes mechanics as a promotional tool, the way they are intended. We want to make the case for how and why this model should be embraced and supported, rather than opposed."

By aligning with industry groups and promoting responsible practices, Playstudios hopes to counteract legislative efforts aimed at shutting down sweepstakes operations.

Launch expected before end of 2025

If legal conditions allow, Playstudios expects its sweepstakes website to be operational across all compliant US jurisdictions before the year ends. The platform will feature proprietary casino-style games enhanced with social gaming elements - a blend the company believes will attract and retain players in an increasingly crowded market.

Playstudios will need to adapt quickly to protect its investment and ensure compliance to deal with the legal landscape. For now, Pascal's message is clear: the company is ready to enter the space with a product it believes can stand out, even in turbulent regulatory waters.

A study conducted by the American Gaming Association discovers that 90% of players in sweepstakes casinos are aware that sweepstakes casinos are, in fact, offering gambling. In addition, 69% of these players know that they can bet real money on these sites, and 80% also spend regularly on sweeps casinos without the usual protections offered by regulated casinos.

A new study from the American Gaming Association has confirmed what many in the gaming industry have long suspected: despite their claims of legality, online sweepstakes casinos are overwhelmingly perceived by the majority of consumers as platforms for gambling. As the popularity and advertising presence of these unregulated sites rise across the US, industry advocates and lawmakers are sounding the alarm about their impact on player safety and the integrity of the legal gaming industry.

Unregulated operators dominate online casino advertising

According to data provided by mobile analytics firm Sensor Tower and compiled by the AGA, nearly 50% of all real-money casino ads online seen by consumers in early 2025 came from offshore sweepstakes casinos. These sites, which use legal loopholes to offer casino-style games in exchange for sweepstakes entries rather than direct wagers, are exploiting vague legal frameworks in many states.

"These operators present themselves like legal, regulated platforms - but they operate outside the law and regulation," said Tres York, AGA Vice President of Government Relations. "There are few if any responsible gaming tools, no regulatory oversight, and no consumer protections. It's a dangerous subterfuge that puts players at real risk."

Consumers know it's gambling - and they're playing anyway

The new research dispels the notion that players view sweepstakes casinos as innocent entertainment. In fact, the study found that a majority of users see them for what they are: gambling sites.

Key findings include:

• 90% of sweeps casino users consider themselves gambling when they engage with these sites.
• 69% of users define sweeps casinos as places where they can wager real money.
• 68% say their main motivation is to win real money, not entertainment or social interaction.
• 80% of users spend money monthly on these sites, with nearly half spending weekly.

Despite these figures, sweepstakes casinos continue to operate largely outside the bounds of regulated gaming, offering none of the safeguards found in licensed environments. With no required responsible gambling measures, no consumer recourse, and little transparency, advocates warn the risks are growing.

Legal loopholes, state inaction fuel the trend

One of the most troubling elements of the sweepstakes casino boom is how concentrated these ads are in high-population states that lack specific prohibitions. The AGA's data shows the number of monthly sweepstakes players is twice as high in states that don't actively regulate or restrict such platforms.

While licensed online casinos are held to strict standards and only advertise in jurisdictions where they're legally permitted, sweepstakes casinos flood social media and mobile platforms with ads, often mimicking the design, language, and promotions of legitimate brands.

The confusion is intentional, said York. These sites are crafted to look, feel, and sound like legal gambling options, making it extremely difficult for the average player to distinguish between the two, York added.

Calls for enforcement and legislative action

As public awareness grows, the AGA is urging lawmakers and regulators to take stronger action. The association believes the findings should prompt a more aggressive crackdown on unregulated gaming and clearer policy guidelines to protect consumers. "The data is clear," emphasized York. "Consumers see right through the sweepstakes casino facade and they're calling it what it is: gambling. We look forward to policymakers continuing to enforce their laws and create clarity through new policy measures to protect their residents."

The AGA has long advocated for a well-regulated gaming market that prioritizes consumer safety, responsible gambling, and industry transparency. This latest research strengthens the case for federal and state authorities to close the legal gaps that allow sweepstakes casinos to flourish unchecked.

VGW sweepstakes sites such as Chumba Casino, which operates in New Jersey, will start its planned phase out of the use of Sweeps Coins on the 29th of July. Meanwhile, customers can still use their Gold Coins on LuckyLand Slots, Global Poker, and Chumba Casino for social play.

New Jersey players of popular social casino platforms Global Poker, Chumba Casino, and LuckyLand Slots are preparing for big changes. VGW, the Australia-based owner and operator of the three sweepstakes casino brands, has announced it will begin phasing out the use of Sweeps Coins in New Jersey starting on the 29th of July, in response to pending legislation aimed at banning online sweepstakes gambling in the state.

VGW shared the news via email to its New Jersey user base, outlining a three-phase timeline that will culminate in the complete removal of sweepstakes play in the state by the 24th of September. The email acknowledged potential disappointment among players but emphasized that the decision was a measured business move influenced by regulatory changes.

The phase-out timeline

VGW's rollout of the New Jersey exit begins on the 29th of July, when players will no longer be able to earn Sweeps Coins through contests, login rewards, or purchases of Gold Coins. Additionally, requests for Sweeps Coins by mail will no longer be accepted. Players will, however, be able to use any Sweeps Coins already in their accounts for a limited time.

The second stage hits on August 26, when Sweeps Coins will no longer be valid for gameplay. Mail-in requests submitted on or after this date will not be processed, although players can still redeem any remaining Sweeps Coins for prizes.

By September 24, all Sweeps Coin redemptions will cease, marking the official end of VGW's sweepstakes operations in New Jersey. "While Promotional Play will no longer be available," VGW stated, "you'll still be able to enjoy all your favorite games in Standard Play using Gold Coins."

AB5447 prompts statewide shake-up

VGW's exit from New Jersey is a direct response to Assembly Bill 5447, legislation passed on June 30 by the New Jersey legislature that prohibits online sweepstakes casinos. While Governor Phil Murphy has yet to sign the bill, it is expected to become law through signature or pocket approval by August 14.

The bill specifically targets casino-style games offering redeemable or cash-equivalent prizes through sweepstakes promotions. Sweeps Coins fall squarely within that definition. In contrast, Gold Coins - which cannot be redeemed for real-world value - remain legal under the new law, enabling VGW to continue offering social gaming in the state.

VGW among several operators exiting NJ market

VGW's gradual exit follows a broader trend. Other sweepstakes operators, such as Spree and Funzpoints, have already withdrawn entirely from New Jersey - including both sweeps and social gameplay. Before them, Clubs Casino, LuckySlots.us, and Clubs Poker also exited the state.

Certain operators, like High 5 Casino and Stake.us, departed from not only New Jersey but also other regulated states like West Virginia, Michigan, and Pennsylvania. Their rationale: avoiding overlap with real-money online casinos.

States with Gold Coin-only access growing

Once the New Jersey phase-out is complete, VGW will add the state to its growing list of Gold Coin-only jurisdictions. These include Connecticut, Louisiana, Delaware, Michigan, Idaho, Nevada, Montana, Washington, and New York.

Notably, states like New York, Connecticut, and Montana also passed legislation in 2024 and 2025 outlawing sweepstakes-based gameplay. VGW halted Sweeps Coin access in New York in May, just days before the bill was passed there - a swifter exit compared to its New Jersey schedule.

While VGW's Sweeps Coin operations in New Jersey are ending, the company isn't entirely pulling out of the state. It holds a 13.9% stake in the parent company of Jackpot.com, a regulated lottery courier service. This allows VGW to maintain a small but legal revenue stream in the state, even as its core sweepstakes gaming model disappears.