Sweepstakes Firms Seek State Talks, Not Court Battles

Patrick Fechtmeyer, chief executive of ARB Interactive, says sweepstakes casino operators are meeting with state lawmakers rather than pursuing federal lawsuits as they press regulatory talks in 2026. ARB operates the sweepstakes brand Modo and completed an acquisition of Publishers Clearing House last year.

Fechtmeyer argued the two sectors face different legal frameworks. He said prediction market firms operate under federal oversight, which leads them to challenge state actions in court. Sweepstakes activity is governed mainly by state law, he said, so operators are focusing on negotiations with state officials.

Legislative activity has increased. Indiana, Maine and Oklahoma passed measures targeting sweepstakes operations in 2026. Six states enacted sweepstakes-related restrictions in 2025. Measures in Tennessee and Louisiana are awaiting governors’ decisions, and Iowa’s governor signed SF 2289, which expands regulators’ enforcement authority over illegal sweepstakes operators. Proposed bans failed to advance this year in Florida, Massachusetts, Virginia, Minnesota and Mississippi.

Industry coordination through the Social Gaming Leadership Alliance has focused outreach to legislators and regulators. Fechtmeyer credited those conversations with helping to block some ban proposals. He has testified against ban bills in Minnesota and Indiana and urged lawmakers to update state sweepstakes laws to keep players on regulated domestic platforms rather than push them offshore.

Fechtmeyer described 2026 as an inflection point for the industry and said he expects more state regulators and lawmakers to consider regulatory frameworks for regulated sweepstakes platforms. He contrasted that approach with prediction market operators, which he said are pursuing federal remedies and are less engaged with state officials.

His remarks were made during a question and answer session scheduled for publication later this week.