Google Ads announced some policy updates this month that will impact several gambling advertisers, including sweepstakes casinos, social casinos, and gambling affiliate sites. On the surface, there doesn’t seem to be much to the updates, but a few important details may have some sweeps casinos considering major changes to their operations.
The guidelines require online gambling ads and gambling promoters like affiliates to abide by country-specific and state-specific gambling regulations. They also require operators and affiliates to apply for certification to run Google Ads.
These changes will go into effect April 14.
So where exactly does this leave sweepstakes casino sites?
Sweeps casinos constitute online gambling, Google says
The Updated Google Ads policy defines gambling as follows:
- “As defined by law under the regulatory framework in the country you are targeting with ads”
- “Anything that functions by staking something of value on the outcome of events or processes determined by an element of chance with the opportunity to win something of value”
While some could and will argue that sweepstakes casino sites don’t explicitly fall in either of these categories, Google clears up where it stands on that question in its list of examples of what is considered online gambling (emphasis added):
- Online casinos or bookmakers
- Online bingo or slots sites or apps
- Online lottery ticket or online scratch card purchase
- Online sports betting
- Online gambling games played with virtual currencies or items that have real-world value
One thing to note: On the actual certification application for gambling ads in the U.S., there is no option to select sweepstakes casinos, only online casinos. So presumably, sweeps operators would need to select “online casinos” as the product they are requesting to advertise.
According to Google’s U.S.-specific ad stipulations for online casinos:
- “Advertisers of horse racing, sports betting and online casinos must be licensed by the state entity in certain states where legal.”
Google support didn’t respond directly to Sweepsy‘s request for clarification on the “certain states where legal” specification, but Google did provide us with the following explanation regarding the updated policy:
“Gambling ads must target approved countries, have a landing page that displays information about responsible gambling and never target minors. Check local regulations for the areas that you want to target.”
This appears to confirm that Google will defer to local gambling regulations in its decisions whether to approve Google Ads certification for online casinos, including sweepstakes casinos (by Google’s categorization).
In which states can sweeps casinos run Google Ads after April 14?
One possible interpretation is that any online casino sites (including sweepstakes casinos) looking to advertise in states with legal and regulated iGaming would need to be licensed by the state gaming operator to be eligible for certification to advertise in those states.
On Google’s gambling ad application for a single-country license, only the following states are listed as options when you select “online casino” as the product you are advertising:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- West Virginia
- Rhode Island
- Nevada
The first seven make a lot of sense — those are the only U.S. states with legal and regulated online casinos. Nevada, on the other hand, does not have legal online casinos. It does have regulated online poker and online sports betting (with some in-person requirements). Why Nevada is included in this short list is unclear.
What this could mean for sweepstakes casino operators depends on how Google interprets licensing and legality of sweepstakes casinos in legal iGaming states and in states without regulated iGaming. What it could mean:
- Sweeps casinos won’t be able to run Google Ads in the eight states listed on the application (due to the state licensing requirement).
- Sweepstakes casinos (and regulated online casino brands) could be blocked from advertising in states other than the eight states listed, as the Google Ads application form does not even allow online casino companies to apply for Google Ads certification in the other 42 states.
A less likely scenario is:
- Some sweeps casinos (presumably only ones that are 21-plus and have the required responsible gambling messaging) could apply and get Google Ads certification in any of the eight states listed above that they operate in, based on the sweepstakes law argument. Again, this would depend on Google’s interpretation of local and state regulations for online casinos and sweepstakes.
If that last scenario does occur (like VGW getting certified to run ads in Pennsylvania or Delaware, for example), we can likely expect more of those states to follow legislative approaches like those in Mississippi (and Connecticut and Maryland) attempting to explicitly outlaw sweepstakes casinos in their legal code, to remove any ambiguity around local gambling law and regulation.
For eligible U.S. online gambling products, advertisers also must, according to Google:
- “(1) Not target users under 21 or users outside of the state(s) where they are licensed”
- “(2) Include a warning against the dangers of addictive and compulsive gambling and related assistance information on the landing page or in the creative.”
The second requirement means we will soon see responsible gambling disclaimers and problem gambling resource information on landing pages of online casino sites that didn’t previously have them. While this policy is specifically for online gambling sites applying for Google Ads certification, it is possible that RG messaging could also impact organic search rankings on Google search engine results pages, prompting even smaller casino operators to include them on home or landing pages.
The requirements in that first bullet point could help explain some recent moves by a couple sweeps casino operators in particular.
Is VGW’s age requirement increase from 18 to 21 a reaction to Google Ads policy update?
While VGW’s decision to change its policy to 21-plus could be based on many reasons, the timing indicates it very well could be in part motivated by Google’s updated online gambling advertising policies. VGW raised minimum age from 18 to 21 just two days after Google’s gambling ads update announcement on Feb. 10.
As of Feb. 12, customers aged 18-20 on VGW sites Chumba Casino, LuckyLand Slots, and Global Poker were no longer allowed to purchase Gold Coins packages. Beginning Feb. 19, these players could no longer redeem Sweeps Coins and they will lose all their access to the sites on April 17.
VGW’s move to increase its minimum age requirement to 21 could help lend more legitimacy to its brands, or at least help it defend itself against the ongoing and growing anti-sweeps casino sentiment. In addition to facing moves by state gaming regulators, attorneys general, and legislators to ban or expel sweeps operators from their states, VGW also continues to be the primary target of civil suits and class actions from customers.
As the top dog for sweeps casino revenue, VGW is also among the biggest spenders when it comes to advertising of its products. A VGW financial report from 2023 showed that, after taxes, the company posted a total profit of $323.5 million. The report also showed VGW spent $275 million on advertising spend for its social sweepstakes gaming brands in 2023, up from $237 million in 2022. VGW’s Google and social media ads feature celebs like Ryan Seacrest and Michael Phelps, which help promote credibility and trust for their brands.
For VGW (and other sweepstakes casino operators) to possibly gain approval for Google Ads in the U.S. as of April 14, they very clearly cannot be targeting users under 21. VGW’s revised age policy, which will be fully in effect on April 17, eliminates a major obstacle to gaining certification for Google Ads, a marketing strategy VGW is likely interested in maintaining.
The pesky ol’ licensing question
Going back to the updated Google Ads policy above, online casinos (including sweepstakes casinos) are also forbidden from targeting “users outside of the state(s) where they are licensed.”
It’s not completely clear what this will mean for sweeps casinos in practice, or where in Google’s eyes sweeps casinos are legally entitled to operate.
Will they only be excluded from Google advertising in regulated iGaming states (and Nevada, apparently)? Will they be able to get Google Ads certification to advertise in legal iGaming states if the states don’t explicitly outlaw them?
Will they find a way to become licensed in regulated online casino states, as at least one bill in New Jersey has proposed?
It’s hard to tell at this point, but we should get a better idea once the policy updates go into effect.
Will others follow High 5, Stake.us decisions to pull out of regulated iGaming states?
Perhaps also in response to Google’s Ad changes, High 5 Casino earlier this week updated its terms to exclude players in Pennsylvania, Connecticut, Delaware, New Jersey, Rhode Island, and West Virginia effective Feb. 18, with accounts to be permanently closed after March 14 (as first reported by The Closing Line). Those are all regulated iGaming states.
The other regulated online casino state, Michigan, as well as Nevada, were already on High 5’s restricted list.
Then, on Feb. 20, Stake.us also officially pulled out of all regulated iGaming states.
VGW currently restricts players from Connecticut, Idaho, Michigan, Montana, Nevada, and Washington. It will be interesting to see if VGW opts to pull out of any of the other states named in the Google Ads policy update (i.e. Pennsylvania, Delaware, New Jersey, Rhode Island, or West Virginia).
It’s also possible that we will see other high market share sweeps casino operators follow either or both moves — to raise the minimum age to 21 or pull out of regulated iGaming states (and Nevada) — particularly before the new Google gambling ads policy goes into effect on April 14.
SPGA: Members ‘will comply’ with any requirements for Google Ads
A spokesperson for the Social and Promotional Games Association (SPGA) commented the following to Sweepsy about the Google Ads updates:
“Google has made multiple policy changes, as well as algorithm adjustments, over the last few years which have affected many industries. If looking to advertise with Google, SPGA member operators will comply with any requirements that company may have.”
One takeaway from that statement is that for many of the dozens of sweeps casinos with relatively small shares of the market (and lower marketing budgets), running Google Ads may not be in their budgets anyway. So they may be less inclined to make changes similar to ones that VGW and High 5 are making, or others based on Google gambling ads policies.