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What has Google said?

While US state lawmakers debate and deflect on various iGaming structures and frameworks, Google has taken the law into its own hands and, for advertising purposes, lumped all gambling activity into the same category.

According to Google's U.S.-specific ad stipulations for online casinos:

“Advertisers of horse racing, sports betting, and online casinos must be licensed by the state entity in certain states where legal.”

While there is debate around whether sweepstakes casinos fall into the strict definition of gambling, Google has come up with its own definition, and defines the gambling sector as:

• • Online casinos or bookmakers
    
  • Online bingo, slots sites, or apps
    
  • Online lottery ticket or online scratch card purchase
    
  • Online sports betting
    
  • Online gambling games are played with virtual currencies or items that have real-world value
    

Acting responsibly

It has also been said that gambling ads must have a landing page that displays information about responsible gambling and never target minors, which any accountable gambling operator would agree with. However, the definition of ‘state entity in certain states where legal' is somewhat misleading, as sweepstakes casinos themselves do not have to be registered with the real-money licensing body. The company says it supports responsible gambling advertising and requires advertisers to comply with local gambling laws.

Playing responsibly

Most people in the industry would support Google's position. As Alexander Korsager of Casino.org told us, whether his company is reviewing a real-money or a sweepstakes casino, they only recommend platforms that adhere to the highest possible standards.

“We are a gambling review website, and we rate and review real money, sweepstakes, and social casinos, so our view is pretty much aligned with Google. These sites feature gambling games, and we are only interested in those that operate legally and with proper responsible gambling safeguards. We would never advise anyone to just click on an advert without doing some serious background checks first”.

When we asked him what he meant, he explained,

“I have reviewed just over a hundred sweepstakes casinos during my time at the company, and some stand head and shoulders above others. Legitimate sweepstake sites require players to provide valid proof of identity and address before registering or purchasing virtual tokens. They can also access your location via your IP address.

As you have to be over 18 to play at a sweepstake casino, some operators may impose a higher age limit based on local state laws. We are happy to see that Google takes the promotion of gambling sites as seriously as we do.”

Tightening up

Long-term, it is hoped that the decision will mean less irresponsible advertising by scam and shady companies. Reuters recently revealed that Meta is earning a fortune from fraudulent ads and that it has projected that more than 10% of its 2024 revenue would come from ads for banned goods and scams. The report claimed that the social media giant had failed to identify and stop “an avalanche” of ads that exposed users to illegal online casinos, fraudulent e-commerce sites, and scam investment schemes.

Google's reclassification of sweepstakes casinos and tightening up of gambling advertising overall should be good news for reputable operators in the sector. While sweepstakes casinos will no longer enjoy the legal flexibility of purely social casinos, those that want to operate honestly and responsibly should be able to make themselves more visible.

Leveraging affiliate power

This could be great news for affiliate companies keen to promote responsible gambling sites, helping them put ‘clear blue water' between scam and sham sites and respectable ones. Google's policy change will not affect where sweepstakes casinos can operate, only how they can be advertised on Google. For regulatory purposes, they are classified as games rather than gambling, but as they feature gambling games, they are clearly a substitute or alternative to real money options.

The decision narrows sweepstakes casinos' advertising freedoms but does not affect their operating potential. What it will hopefully do is create a barrier for disreputable operators who have been trying to push unsuitable games towards minors or vulnerable people.

Keeping it fun

Korsager told us,

“Gambling and iGaming should always be fun. Whether one is playing for pennies in a seaside arcade or contemplating a high-stakes bet in a poker game, ultimately, gambling is entertainment. People who play need to understand the rules and set financial and time limits before embarking on a session: even social casinos that do not cost money still take time. Gambling can be a great way to pass some downtime and can be very relaxing. As with all things in life, it is about balance.”

Regulatory crackdowns

Regulations are changing across the US. California is set to outlaw sweepstakes casinos after California Governor Gavin Newsom signed AB 831 into law, banning online sweepstakes and platforms operating a ‘dual-currency' gambling system. Minnesota's Attorney General Keith Ellison announced a crackdown on sweepstakes casinos that are running illegal gambling websites. Several US states, including New York, New Jersey, and Florida, are seeking to impose restrictions or outright bans on sweepstakes casinos, highlighting the use of “virtual” or “dual-currency systems” to circumvent gambling laws. Gambling laws will continue to evolve over the coming years.

What sweepstakes casinos have demonstrated is that many people love to have the chance to play casino games. Sweepstakes casinos have exploded in popularity, and loads of new ones have been launched. Regulatory frameworks in the US mean that some brands have introduced sweepstakes platforms to enter markets where traditional real-money casinos are unavailable.

Good news for good operators

With the exception of California, it is the states where real money online gambling is strongest and legal that have restricted sweepstakes sites. California has a complicated relationship with online gambling, so it was hardly surprising that sweepstakes casinos went the same way as all other attempts to introduce online gambling in the state.

In summary, Google's move is a positive one for reputable operators. Anyone who has a great sweepstakes casino site will find that affiliate marketing partners will rate and recommend their platform. The only businesses that have anything to fear are those that are not who they say they are or operate in an underhanded manner. Gambling is a serious business, and it is good to see Google acting in a responsible manner.