SGLA Highlights Florida’s Potential for Sweepstakes Regulation

The Social Gaming Leadership Alliance (SGLA) is beginning to promote the economic benefits of regulating online sweepstakes gaming in the state of Florida.

The SGLA, a trade group representing many of the most popular sweeps casinos – including Chumba, Pulsz, and McLuck – has faced setbacks this year as several states passed anti-sweepstakes legislation, essentially banning the format. Because of this, the group seems to be exploring opportunities to strengthen markets elsewhere.

Why Florida Matters to the Social Gaming Leadership Alliance

No state currently offers regulation for sweepstakes or social casinos. On the contrary, sentiment favors legislation to ban the vertical, with Montana, Connecticut, Nevada, New Jersey, and California all passing such bills in 2025. Connecticut and New Jersey do regulate online real money casinos, which they see as distinct from sweeps sites.

Meanwhile, the vast majority of sweeps casinos are still active in Florida, operating in a gray area of the law thanks to their dual currency system which avoids direct, real money consideration.

In fact, Florida is very rarely off limits for sweepstakes sites (going by the terms and conditions of various brands), and with a population exceeding 23 million in 2024, it ranks just behind California and Texas, making it a high priority for the SGLA.

The trade group recently commissioned a report on the state’s potential, and the document from Eilers & Krejcik Gaming estimates that Florida accounts for around 8.5% of the total US sweeps market this year – that’s about $1.04 billion of a $12.5 billion market. Those figures relate specifically to sales from purchases of coin packages, and break down to $334 million and $4 billion in net revenue.

The report also goes on to point out the economic benefits for the state via potential regulation via a license fee system. It estimates that a $270,000 a year license for each brand could be realistic and might be funded in part by a 6% sales tax in Florida – in line with the current statewide sales tax. That would potentially bring in $62.7 million in annual tax revenue for the Sunshine State.

The SGLA commissioned a similar report from Eilers & Krejcik earlier this year in its fight against California’s anti sweepstakes bill, AB 831. Despite that report estimating similar economic benefits for the Golden State, CA’s bill still passed and was signed off by Governor Newsom, meaning that all sweeps casinos must leave the state by the end of the year or face penalties.

Legal Hurdles and Tribal Exclusivity in Florida

Florida has some similarities to California. For example, both states have compacts with Native American tribes who run land-based venues to the exclusion of standard commercial casinos.

It’s the Seminole Tribe in Florida who control the land-based market, and they offer some sports betting too (via Hard Rock Bet). However, they don’t offer casino-style gaming online, which is where sweepstakes casinos come in.

In fact, earlier this year SB 1404 was introduced to the Florida Senate, and its aim was to amend state law to explicitly crack down on non-tribal casino-style operations, including sweepstakes and social casinos, clarifying definitions and increasing penalties. Ultimately, it fizzled out, though.

Gaming lawyer Daniel Wallach argues that sweepstakes casinos already violate Florida’s gaming laws. He points out the following:

Between this constitutional right and the power of the Seminole Tribe, Florida will indeed be a tough nut to crack for the SGLA. That being said, the state represents too large and lucrative a market for the SGLA to ignore. By promoting the potential for regulation, the SGLA can position itself as a constructive voice, even if immediate success is unlikely.

And for now, the vast majority of sweepstakes casinos continue to operate there anyway, having yet to be challenged directly by the state. Regulation would sure be a nice addition, though.