The CEO of BetMGM, Adam Greenblatt, has come out against sweepstakes casinos in a new interview. In it, he states that the social casino should be made illegal, as it’s a negative for the regulated sector.
Greenblatt is “delighted” that states are tackling the problem. In recent months, New York, California, Connecticut, and others have begun to move to outlaw sweepstakes casinos. Some states are taking it from a protective angle, as these platforms often don’t provide safety measures for addicts and other gambling pitfalls up to standard.
There’s also the matter of these illicit platforms often avoiding taxation, something that states have seen a massive increase in since gambling revenue has jumped in the last few years.
BetMGM CEO on sweepstakes casinos
Speaking in the interview, Greenblatt said:
“Look, we’re pretty clear — or we are clear that we believe sweeps should be illegal iGaming, and it’s bad for the regulated sector. It’s bad for state revenues. It’s bad for players.
“And so, we are delighted to see lots of states now — increasingly, not lots, increasingly states adopting just legislation against the sweeps industry, which — what we would love to see and what we are certainly advocating for is more regulated iGaming states, I think BetMGM more than anyone stands to gain relatively most in the event that it happens. And we fully anticipate, over time, that to happen.
“But the message to our lawmakers is the sweeps activity is happening anyway. As I’ve said, the good guys aren’t benefiting. And so, we would like to see that situation unwind and in fact reverse.”
BetMGM won’t be first to move to predictions
The CEO also said that they won’t be the first to make a move on the prediction markets. This is due to the ongoing lawsuits and various legal issues surrounding the concept.
Platforms like Kalshi and Polymarket have begun to dominate the gambling industry, providing a massive range of topics to bet on. Politics, movies, and more are all on the table.
Tribes in California have taken umbrage with Kalshi, which it sees as providing sportsbooks in a state where sports gambling is illegal. Greenblatt elaborates:
“We do not have the desire to be a first mover. Our state regulators have been very clear. Our tribal partners have been very clear. Thirty-four states’ attorneys general have been very clear.
“They do not believe prediction markets should serve — should offer sports contracts, because that is sports betting. They would argue that that is sports betting.
“And so, I don’t think we have a — BetMGM has a right to win… trying to become a leader in what is a very different market.
“From a regulatory perspective, very different. From a technical perspective, from a risk management perspective, just very different.”
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