GammaSweep: Why operators need a more proactive approach to compliance

How does marketing influence the perception of sweepstakes casinos? 

Marketing plays a significant role in shaping how consumers, regulators and the wider industry perceive sweepstakes casinos. The challenge is that the distinction between social gaming, promotional sweepstakes and traditional real-money gambling is not always clear to the average consumer.  

When marketing focuses heavily on jackpots, prizes and winning opportunities without adequately communicating the underlying promotional model, it can create expectations that the platform operates like a conventional online casino. This can lead to confusion and, ultimately, greater regulatory scrutiny. I believe the industry needs to move towards more transparent and responsible marketing.  

Operators should clearly explain how their dual-currency models work, communicate eligibility requirements, avoid misleading claims and ensure that promotional messaging is consistent with the actual product experience. Ultimately, marketing should build trust, not simply drive acquisition. The operators that understand this will be better positioned to establish sustainable businesses. 

How should operators move forward in states where these platforms are not banned to avoid the same fate? 

The biggest mistake operators could make is assuming that because a state currently permits their business model, it will continue to do so indefinitely. Operators need to take a much more proactive approach to compliance.  

This starts with understanding the specific regulatory environment in every state they operate in, monitoring legislative developments and having the ability to respond quickly when requirements change. 

There are several areas that deserve particular attention: 

• Geolocation: Accurate, real-time player verification to ensure that access is restricted in prohibited jurisdictions. 
• KYC and AML: Strong identity verification, transaction monitoring and risk-based controls to identify suspicious activity. 
• Responsible gaming: Effective player protection measures, including age verification, self-exclusion and appropriate spending controls. 
• Marketing and promotions: Clear terms and conditions, transparent promotional mechanics and responsible advertising. 
• Operational readiness: The ability to quickly adapt payment methods, promotional rules and platform functionality as state requirements evolve. 

I would also encourage operators to invest in compliance before they are forced to. The objective should not simply be to remain operational in the short term, but to demonstrate that the business is responsible, transparent and capable of adapting to regulatory expectations. 

Do you think prediction markets are drawing regulatory attention away from sweepstakes casinos? 

I think prediction markets are certainly attracting a significant amount of regulatory and political attention, but I wouldn't necessarily say that this is taking attention away from sweepstakes casinos. They are two different business models, with different regulatory frameworks and questions around jurisdiction. Prediction markets have brought renewed attention to the boundaries between financial markets and gambling, particularly around the authority of federal regulators versus individual states.  

What is interesting is that both sectors are experiencing a similar underlying challenge: innovation is moving faster than regulatory frameworks can comfortably accommodate. For sweepstakes operators, the focus remains on promotional mechanics, consumer protection, state gambling definitions and the way platforms operate across jurisdictions.  

Prediction markets have their own set of challenges around event contracts, market integrity and federal oversight. I think the broader lesson is that regulators are increasingly looking beyond how a product is labelled and examining how it actually functions. No emerging gaming model should assume that regulatory attention will disappear simply because another sector is making headlines. 

What can tech providers do to help these platforms overcome some of the regulatory scrutiny? 

This is where technology providers have an increasingly important role to play. We believe compliance needs to become part of the platform's foundation rather than something operators try to add once regulatory issues arise.  

At GammaSweep, we see technology as an enabler of responsible operations. Operators need infrastructure that gives them the flexibility to manage different regulatory requirements without having to rebuild their entire platform every time a state changes its position.  

For example, advanced geolocation technology can help identify a player's location and restrict access where required. Integrated KYC solutions can support identity and age verification, while AML tools can help operators monitor transactions and identify unusual activity.  

Beyond these individual capabilities, there is a need for a more integrated approach: 

• Configurable state-level controls: Operators should be able to configure access, promotional mechanics and product availability according to jurisdiction.  
• Integrated KYC and AML: Identity verification, transaction monitoring and risk management should work together rather than as disconnected processes.  
• Auditable reporting: Operators need reliable records of player activity, transactions, verification checks and compliance decisions.  
• Flexible payment infrastructure: Payment providers and transaction controls should support the operator's compliance requirements.  
• Ongoing monitoring: Technology should help operators identify changes in player behaviour, emerging risks and potential compliance issues. The important distinction is that technology cannot guarantee regulatory compliance or replace legal advice.  

What it can do is give operators the infrastructure, visibility and operational controls to meet their obligations more effectively. That is ultimately what we mean by Compliance-as-a-Service: making compliance capabilities accessible, integrated and scalable, rather than requiring every operator to build everything independently. 

In 2025, your CEO mentioned that you are “waiting for the dust to settle,” when speaking about the reaction to this new form of gaming. How would you describe the state and perception of sweepstakes today? 

I think the dust has certainly settled to some extent, but what we are seeing now is a much more significant reshaping of the industry than many initially anticipated. In 2025, there was considerable uncertainty around how regulators, lawmakers and even technology partners would respond to the rapid growth of sweepstakes casinos.  

There were different interpretations of the model, and it was difficult to predict which direction individual states would take. Today, the environment is much more defined, although it remains challenging. We have seen legislative restrictions, enforcement actions and increased scrutiny of how these platforms operate.  

The industry can no longer rely on the assumption that a sweepstakes structure alone will be sufficient to address regulatory concerns. At the same time, I don't believe this means the market has lost its potential. Rather, it is entering a more mature phase. The conversation is shifting from how quickly operators can launch and acquire players to how responsibly they can operate, how transparent their business models are and whether they have the technology to support long-term sustainability. From our perspective, this is an important turning point. The companies that invest in compliance, operational transparency and responsible technology will be in a much stronger position than those that view regulation as simply another obstacle to overcome. 

What does “Compliance-as-a-Service” mean to you? 

To me, Compliance-as-a-Service means making regulatory readiness an integrated part of the technology infrastructure that powers an operator's business. Historically, compliance has often been treated as a separate function, with operators relying on different providers for geolocation, identity verification, payments, transaction monitoring and reporting.  

This can create fragmented systems, operational inefficiencies and gaps in visibility. We believe the future is about bringing these capabilities together within a single, adaptable technology ecosystem. For example, an operator should be able to onboard a player, verify their identity and age, establish their location, apply the appropriate jurisdictional restrictions and monitor relevant transactions through connected systems.  

How does GammaSweep approach these requirements? 

At GammaSweep, our approach is to provide operators with a platform that integrates these essential capabilities from the outset. We work with established technology providers across geolocation, KYC, payments and gaming infrastructure, allowing operators to access these services without having to build every component themselves.  

But "Compliance-as-a-Service" goes beyond simply integrating third-party tools. It is about giving operators the ability to adapt as regulations change, maintain visibility over their operations and make informed decisions. I see it becoming a fundamental part of the next generation of gaming technology. Compliance should not slow innovation down; it should provide the structure that allows innovation to happen responsibly. 

VGW recently launched a Chumba Casino iOS app; how does this speak to the size of the market? 

I think it is a significant development and a strong indication that the market continues to have considerable consumer demand. VGW has been one of the pioneers of the sweepstakes casino model, and the decision to bring Chumba Casino's full experience to a native iOS application demonstrates the importance of the mobile experience and the continued investment being made in this sector.  

What I find particularly interesting is that this is not simply about launching another app. It reflects how established operators are continuing to invest in their products, improve accessibility and create more seamless experiences for their players. The launch also reinforces an important point: despite the regulatory challenges, there is still a substantial commercial opportunity in social and sweepstakes gaming.  

However, I would separate the size of the market from the long-term sustainability of individual business models. Consumer demand is clearly an important indicator, but the industry's future will depend on how effectively operators respond to regulatory expectations. For technology providers like GammaSweep, this creates an opportunity to support operators with scalable platforms that combine strong product experiences with the compliance infrastructure needed to operate responsibly. The next stage of market growth will not just be about who can attract the most players. It will be about who can build the most sustainable operation. 

What's next for GammaSweep in 2027? 

For GammaSweep, 2027 is about building on our foundations and becoming an increasingly important technology partner for operators navigating this changing regulatory environment. We see three major priorities. First, continuing to strengthen our compliance capabilities. We want to make it easier for operators to manage jurisdictional requirements, integrate KYC and AML solutions, improve geolocation controls and maintain better visibility across their operations. Second, expanding our technology and integration ecosystem.  

No single provider can solve every challenge facing this industry. We want to continue working with established payment providers, compliance specialists, game studios and CRM partners to give operators access to a more complete technology stack. Third, focusing on scalability and operational efficiency.  

Operators need platforms that can grow with their businesses without compromising the player experience or creating unnecessary operational complexity. We also want to continue improving the level of support we provide to our partners. We believe there is real value in combining technology with practical industry experience.  

How optimistic are you about the future of sweepstakes?  

Having built our platform with an understanding of how sweepstakes businesses actually operate, we can help our partners make better technology and operational decisions. Ultimately, we are very optimistic about the future, but we are also realistic about the challenges ahead.  

We don't believe the next phase of this industry will be won simply by launching faster or spending more on marketing. It will be won by building better businesses, supported by better technology, stronger compliance and a genuine commitment to long-term sustainability.  

Our ambition for 2027 is simple: to make GammaSweep more than just a platform provider. We want to be a long-term technology and infrastructure partner for operators who are serious about building sustainable businesses in this evolving market