This week’s East Coast Gaming Congress at Atlantic City’s Hard Rock Casino saw two hot topics take center stage: the growth of sweepstakes-style mobile gaming platforms and the increasing appeal of event-based prediction markets. Both trends are gaining momentum and pushing the boundaries of current gaming laws.
Legal Uncertainty Surrounds Sweepstakes and iGaming, Say Industry Leaders
Industry experts voiced worries about how these new formats often operate in legal gray areas. David Katz from Jefferies Capital pointed out that such ventures often muddy the waters between what is legal and what is not. He mentioned that while some of these new platforms might find a way to become legal, others might have to shut down, reported Casino Reports.
Lynne Kaufman, a legal expert leading a panel called Future Shock: Confronting Unprecedented Changes in Gaming, highlighted how famous people like Drake and Michael Phelps endorsing sweepstakes gaming have boosted its visibility — and sparked debate. These platforms offer casino-like experiences but sidestep traditional gambling labels by using virtual money systems.
Shawn Fluharty, who heads the National Council of Legislators from Gaming States, claimed that talks about iGaming slowing down are not true. He said more states have put forward online casino bills in early 2025 than ever before. He hinted that financial pressures at the state level, given how the federal government views budget self-reliance, might speed up efforts to make iGaming legal.
Fluharty also highlighted the danger for states that put off taking action. If nearby areas give the green light to online casinos, they might drain away tax money, a pattern already noticed with legal sports betting. New Jersey alone took in more than $350 million in online gaming taxes last year, showing how much cash is at stake.
Gaming Execs Warn of Legal Battles Surrounding Sweepstakes and Prediction Markets
Andrew Winchell, speaking for Betr, agreed that states face growing pressure not to miss out on income from more forward-thinking neighbors. He also warned that trying to spell out and control sweepstakes, too, could get stuck in long legal fights — like the arguments over food labels in past decades.
When it comes to prediction markets — like those on platforms such as Kalshi — panel members cautioned about similar legal uncertainties. These platforms let people bet on real-world events, but the legal status of these bets remains unclear. Fluharty thought the federal government would need to sort out this issue, but he expected prediction markets to end up like sweepstakes in states with established iGaming systems.
Technical giants such as Continental 8 are steering clear of sweepstakes entirely. Continental 8’s David Brace saw this as a long-term plan, banking on clearer rules and a steadier market instead of quick cash.