Sweepstakes casinos are now formally barred from advertising as social casino platforms on Google, following a recent reclassification in the search engine's advertising policy.
Indeed, Google's reclassification is precise and unequivocal - as the organization's official Gambling and Games Advertising Policy page now reads, "Examples of games that are not social casino games: Sweepstakes casinos."
This classification statement, while short, represents a much wider ripple of ramifications for the sweepstakes sector and those operational within it, as it almost certainly promises to have a viscerally negative impact on the visibility of sweepstakes casino advertisements across the globe.
The update comes as yet another blow to the struggling sector, which has been fielding mounting regulatory scrutiny in recent months - most significantly in California, which became the sixth US state to formally outlaw the practice in early October.
Welcome to the real world
Crucially, Google now underlines that social casino titles can be defined as "online simulated gambling games where there is no opportunity to win real money or prizes," hence - a purely social casino experience. What this means is, thanks the sweepstakes sector's dual currency system, which utilizes both Gold Coins (which have no real monetary value) and Sweeps Coins (which are not purchasable, but can be redeemed for cash prizes), the practice cannot be defined as a social casino, as there is a real-money element.
The lack of a financial motivator is, to many, what has always defined the experience of a social casino. Many sweepstakes platforms, besides offering Sweeps Coins as promotional incentives, also offer them as an add-on to Gold Coin package purchases. The sector's longstanding argument has rested on the idea that, since no real-money wagering is involved in that process, they can remain classified as social casinos.
However, the explicit omission of sweepstakes from this definition in the eyes of Google's (and YouTube's) advertising policies ties closed the loophole that many operators have been reliant on.
Because of sweepstakes' real money element, Google has now included "online gambling games played with virtual currencies or items that have real-world value" in its list of gambling definitions under "online gambling examples."
Also included in this list are practices including but not limited to; online sports betting, online casino, online bingo or slots, online lottery and more. Seeing as sweepstakes has now been placed alongside these definitions, sweepstakes operators will now be required to adhere to the same advertising regulations as almost any other 'traditional' gambling operator in the industry.
Out of the pan, into the fire...
The industry's argument now seems to be waning and, like most of the rest of the industry, those at G2E seemed to believe that the writing is on the wall for sweepstakes.
This opinion is hardly surprising when the number of ongoing legal disputes submitted by regulators against sweepstakes operators is now in the hundreds, with 17 states having declared the practice illegal gambling and six states having acted on this declaration through hard legislation.
Now, within the space of a month, the sector has been ruled out of the world's fourth largest economy in California and heavily restricted from advertising on the world's most popular search engine.
Bend, or break?
Those are the two options now peering ominously over sweepstakes operators looking to advertise on the Google search engine. Nevertheless, options often present the illusion of choice; and for many, bending to meet new restrictions might not be a choice that is on the table.
The changes are, from the perspective of any sweepstakes operator, troubling in their simplicity. Indeed, operators must now ensure regulatory compliance and hold the necessary gambling licensure for any jurisdictions they wish to advertise in - such as holding a New Jersey gambling license for advertising in the state. This particular example, of course, would be impossible - seeing as New Jersey banned sweepstakes casinos earlier this year.
Aside from the fact that the majority of sweepstakes operators don't possess these kinds of licenses, especially across individual jurisdictions, Google now demands that operator's must display RG messages via their homepages and avoid targeting underage users.
There is perhaps still the potential for compliance for registered and regulated online casinos that are running sweepstakes on top of their alternative operations, but for most in the industry, these are restrictions that quite simply won't be achievable.
It would perhaps be a slight overstep to suggest that this is a 'sweeping' death sentence to the sector - especially given the fervent unpredictability of the gaming industry. However, it is certainly added pressure on an already straining windpipe.
Without exposure, no industry can thrive - and alongside additional recent legislative updates, the ground under the feet of the sweepstakes sector is beginning to scorch.
The Social and Promotional Games Association, a previously fierce and vocal advocate for the sweeps industry, officially ceased to exist following its SGLA merger in September
