The expansion of online casino gaming in the U.S. has stalled, and Chris Grove believes the industry needs a fresh approach, and he has the answer. Speaking at the NEXT Summit New York 2025, the co-founding partner at Acies Investments argued that regulated social sweepstakes gaming could be the key to unlocking legislative progress where traditional iGaming efforts have failed.
“Online casino bills are not going anywhere. They aren’t. And I’ve been saying this for like the last six years, and it’s the thing I’ve been the most right about,” Grove told attendees during his State of the Union session.
Despite the strong consumer demand and proven tax revenue benefits of online casinos, legalization has been stuck in neutral since Michigan became the fifth U.S. state to regulate iGaming in 2019, following New Jersey, Pennsylvania, Delaware, and West Virginia. While Michigan’s success proved the market’s potential, efforts to expand have been met with resistance from different areas including tribal gaming groups, commercial casinos, and anti-gambling advocates, making legislative progress in major states nearly impossible.
Rather than continuing to push the same stalled initiatives, Grove proposed a new path forward: formal regulation of social sweepstakes gaming as an incremental step toward broader online casino legalization.
Why Sweepstakes Gaming Could Be the Solution
Grove presented social sweepstakes gaming as a more politically viable alternative to traditional online casinos. Unlike conventional iGaming, sweepstakes platforms operate under a “no purchase necessary” model, which allows players to participate without depositing any real money upfront.
“Consumers like this product because it does not force them to make the same hard decision to self-identify as a gambler by putting down a credit card in order to play games for the chance to win a prize,” Grove explained.
According to Grove, this unique model makes sweepstakes gaming easier for lawmakers and regulators to accept, especially in states where full casino-style iGaming has failed to gain traction. Rather than pushing for broad online casino expansion, he encouraged operators to back legislation that formally regulates social sweepstakes gaming, suggesting that small incremental wins could eventually add up and open the door to full legalization.
“Doing the same thing over and over again and expecting a different result has a name,” he quipped. “I won’t say it’s quite insanity, but we should not be surprised if we continue to pursue the same approach with getting online casino done and don’t get online casino done.”
However, his proposal comes at a complicated time for sweepstakes gaming, which has faced increasing legislative scrutiny in multiple states.
Regulatory Challenges & Industry Backlash
While Grove sees sweepstakes gaming as an opportunity, many lawmakers view it as a loophole rather than a stepping stone.
In 2024 and 2025, several states including Maryland, New York, Connecticut, and Mississippi have introduced or passed laws to restrict or ban sweepstakes gaming, claiming these platforms operate as unregulated gambling sites. Florida, Nevada, and New Jersey are also weighing similar measures as more states look to tighten restrictions on the industry.
With more states looking to tighten restrictions and close the loopholes, the industry faces a crucial question:Can sweepstakes gaming establish itself as a legitimate, regulated alternative to traditional iGaming, or will it be shut down before gaining wider acceptance?
For operators, the challenge lies in pushing for regulation while trying to navigate the increasing legislative pushback. Grove believes the industry’s success depends on whether it can clearly distinguish sweepstakes from online casinos in the eyes of lawmakers.
Despite Legislative Roadblocks, iGaming Continues to Grow
Even with stalled legislation, the online casino industry continues to thrive. In 2024, iGaming revenue saw nearly 30% year-over-year growth, highlighting its strong consumer demand and long-term profitability.
One factor fueling this growth, Grove noted, is that online casinos have a more level playing field compared to sports betting. The gap between the best and worst online casino platforms is far narrower than in sportsbooks, allowing smaller operators to compete more effectively without massive marketing budgets.
Another emerging trend reshaping the industry is the increasing role of consumer AI in player acquisition. Grove predicted that companies that quickly adapt to AI-driven search optimization and marketing strategies will gain a major competitive edge over slower-moving operators or more traditional operators.
“The operators who are fastest to learn how to optimize—or let’s be honest, exploit—the AI-driven search landscape are likely to see substantial consumer and margin gains,” he said.
Prediction Markets & Fantasy Pick’em
Beyond sweepstakes gaming, Grove highlighted two other trends that could change things in the U.S. gambling industry: prediction markets and fantasy pick’em platforms.
Prediction markets, lets users wager on non-sports events like elections or economic trends, however they don’t fit neatly into existing gambling laws. Some see them as a form of financial speculation, similar to stock trading, while others believe they operate more like unregulated betting platforms. This uncertainty makes it difficult for lawmakers to decide whether prediction markets should be regulated as gambling, financial instruments, or something else entirely.
“I don’t think prediction markets are going to change everything, but I think they will threaten to change a lot of things,” Grove warned. “Being ignorant to those threats is probably the biggest risk for everyone in this room.”
Grove also predicted that fantasy pick’em platforms like PrizePicks could be next in line for major acquisitions as companies look to expand their presence in sports gaming. These platforms, which let users build fantasy-style lineups and win based on individual player performances, have carved out a niche between traditional fantasy sports and sports betting. With competition heating up, Grove pointed to Fanatics and Hard Rock Digital as potential buyers, noting that both are aggressively expanding into sports betting and need ways to stand out in a crowded market.
As the gambling landscape continues to evolve, Grove emphasized that companies must be ready to adapt quickly to these emerging trends.
The debate over sweepstakes gaming’s role in iGaming regulation is far from settled, but one thing is clear: sitting back and waiting is no longer a strategy.