At this busy and pivotal moment for the sweepstakes sector, what is one key challenge and one key misconception facing the market at present?

The main challenge is domestic banking and payments. The appeal of sweepstakes gaming is its legal status, which provides access to local banking and proper domestic payment processing in addition to a variety of marketing channels. In my experience, securing these banking and payments relationships has become more difficult over the past year, primarily due to a more cautious approach from the acquiring banks. The encouraging news is that we are seeing new, sometimes even better, solutions introduced on a regular basis.

Regarding misconceptions, operators launch sweepstakes sites based on their knowledge of real money gaming or traditional social gaming but fail to realize that a compliant sweepstakes product is a very different animal that requires significant adaptations across the board. We have worked with multiple companies to ease that transition and noticed that when organizations embrace sweepstakes as something different, and take the time to make the adjustments, their performance improves significantly.

Following the outlawing of sweeps in numerous US states – including California and New Jersey – as well as the recent Google gambling categorization, some are worried that sweeps is a dying sector. What do you think?

In my view, Sweeps is not dying. It’s changing and adapting. As a category it grew very fast, maybe too fast, which in some states led to a strong counterreaction and a more challenging operational and legal landscape. In my work with sweepstakes operators, I insist that they take a responsible approach and operate within each state’s legal framework based on ongoing consultation with reputable lawyers. I believe those who follow these guidelines will be able to solidify and scale their business.

Let’s not forget that the social gaming with sweepstakes model answers a very strong consumer demand, providing the closest possible experience to traditional online gambling without venturing into offshore gambling sites. My recommendation for those seeking to outlaw sweepstakes would be to focus on providing a reasonable and attainable path to a licensed online casino offering. This scenario, unfortunately, is not currently on the cards for most states.

Do you believe that, historically, there has been an attitude or perception of sweepstakes as ‘easy money?’ Is this something you see changing in the current climate?

Definitely. The sweepstakes market has seen a rapid influx of operators over the past two years, many of them drawn by the prospect of quick profits. Those who came less prepared, or simply thought they could apply the same practises used in their real-money operation, quickly realized that this model has many unique challenges; the first of these challenges is its coin economy, which when not properly managed can lead operators to very slim margins or even losses.

That said, opportunities absolutely still exist, and there is still a significant profitable market out there. From firsthand experience, I can attest that operators who take the time to properly understand the ins and outs of the sweeps economy – and all the different elements that impact their bottom line – are far better positioned to show strong ROI and scale up while maintaining healthy margins.

How do you expect the sweepstakes sector to adapt to what are evidently changing regulatory perceptions around its role within the gambling sphere during 2026?

I believe the combination of the current legal pressure and the challenging profitability some operators may be experiencing will require sweepstakes operators to adjust their product and focus on more casual and recreational users. In my view, products that provide a better social gaming experience, which focus more on engagement and less on transactions and that keep the sweepstakes model complementary to the social gaming experience will be able to appeal to larger audiences.

This should also further distance them from being labeled as gambling sites and, hopefully, will result in reduced friction with regulators. However, overcoming the existing perception of the sweeps category and familiarizing users with a new product type could be a difficult endeavor.

Finally, what are the key pitfalls and growth areas sweeps operators should be paying attention to when scaling their operations over the next 12 months?

The vast majority of operators are relatively new and are still working through growing pains. In addition to staying compliant and within legal boundaries, the main areas I’d recommend they pay extra attention to are maintaining a healthy and balanced coin economy, and ensuring their product is built to increase organic and natural engagement as a complement to the economy.

I would also urge operators to step outside their comfort zones and consistently work on diversifying their user acquisition channels. While working with affiliates can be the most familiar path to growth, it is expensive, highly competitive and prove limiting. To mitigate risk, I’d strongly recommend ensuring variety and redundancy in banking and payment processing.

In the current atmosphere, dependency on a single bank or payment processor is likely the biggest threat to a sweepstakes operation. Lastly, operators who feel confident should consider a multi-brand strategy, enabling them to address different audiences, different offerings and cross-sell.