Evolution Exec Says Sweepstakes Casinos Work Like Riverboat Casinos

Evolution Gaming’s Martin Carlesund has recently compared the operations of US sweepstakes casinos to the once-popular riverboat casinos. Both gaming platforms operate in a ‘legal gray area, navigating within narrow regulatory conditions, and thriving whenever regulators fail to act. Carlesund made the comparison during his company’s third-quarter earnings call last week. 

During the earnings call, Carlesund likened the operations of US sweepstakes casinos to the popular riverboat casinos that operate within a gray regulatory framework, which continued to operate until regulators set conditions and forbade them. Carlesund assured all investors on the call that the company will continue to supply its software and games to operators in specific states, as long as there’s no authority banning it.

Riverboat and Sweepstakes Casinos Boast the Same Operations, Say Evolution Exec

Carlesund made the comparison during Evolution Gaming’s Q3 2025 earnings call attended by media representatives and stakeholders. He mentioned that both riverboat and sweepstakes casinos navigate the same uncertain regulatory environments, operating in areas where they aren’t specifically banned, and adjusting their policies whenever regulators issue prohibitions.

Riverboat casinos, for example, complied with specific requirements, like being on water and keeping their engines on, while sweepstakes casinos also exploit a few legal loopholes to operate in certain states. 

Carlesund revealed that Evolution Gaming only supplies its software and games to sites operating in states where sweepstakes casinos aren’t banned or under strict regulatory scrutiny. Evolution Gaming made headlines recently after exiting New Jersey, New York, and California due to tightening iGaming regulations.

Carlesund Highlights Sweepstakes Casinos’ Dual Currency Model 

Evolution’s Carlesund also highlighted the unique operations of sweepstakes casinos with its dual-currency model. He mentioned that these sites often feature two virtual currencies: Gold Coins (GCs), which can be used to play games for fun, and Sweeps Coins (SCs), which can be swapped for real-world prizes like cash.

This model allows these gaming platforms to work as social gaming sites, with a “no-purchase requirement”.

Sweepstakes Casinos and Games Remain a “Small Segment” in  Evolution’s Operations

Despite growing regulatory questions, Carlesund shared that sweepstakes games form “a small part” of the company’s business. He then assured those present on-call that the company will continue supplying its software and games as long as there’s no explicit ban. 

Carlesund then proceeded to highlight California’s recent moves against sweepstakes casino operators. He admitted that the state attorney had filed a personal lawsuit, and they welcomed the development, and immediately left the state.

Carlesund added that they’re okay with the policy change, saying “if that's what (they) want, then we will withdraw from that”.

REFERENCES:

• Evolution Gaming’s Earnings Call Q3 2025