One of the longest-running names in conventional sweepstakes, Publishers Clearing House, has signaled plans to enter the social gaming space by announcing a strategic partnership with SCCG Management. Although the announcement lacked specifics, the consensus among industry experts is that this likely means a new sweepstakes casino is coming.
Publishers Clearing House has a long history of direct-to-consumer products, dating back to the 1950s. The company became renowned for its sweepstakes mailer program. To date, the Publishers Clearing House Sweepstakes has awarded in excess of $500 million in prizes. The company has updated that model to deliver prizes via the internet and email.
SCCG has an expansive footprint in gaming, from tribal casino partnerships to casino gaming and strategic capital investment relationships with gaming companies. SGGC calls itself “the leading advisory firm in the global gaming industry,” identifying itself as “specializing in iGaming, Sports Betting, E-Sports, and Casino Technology…”
In light of PCH and SCCG teaming up, a sweeps casino product could appear in the near future. Both companies mentioned social gaming in statements announcing the partnership.
In a statement, Founder and Chief Executive Officer of SCCG Management Stephen Crystal said of the new venture:
By combining [the Publishers Clearing House] vast database of highly engaged users with our expertise in social gaming, we are creating new ways to drive monetization and expand opportunities for gaming operators.
Social and Sweeps Casinos Continue to Grow in U.S. Markets
That statement leads to speculation that PCH and SCCG are eying social gaming and sweeps, an area of online gaming that is growing in part amid uncertainties over legal online casinos. Fewer than a dozen states have active legal online casino products, which has helped social sweeps casinos thrive in some markets. Some states have taken action to make sweeps casino apps illegal. Other states are considering laws to regulate them or restrict their operations. Always present in the issue is the matter of tax revenue from such products. There are also concerns over sweeps casino or social gaming dangers to underage consumers.
Publishers’ Head of Sales Ed Leahy said in a statement that the strategic partnership with SCCG could “redefine how social gaming operators engage players and build long-term monetization strategies.” The company reportedly has as many as 170 million names in its various player databases.
Currently at its websites, PCH.com, Publishers offers free-to-play sweepstakes and contests that can lead to cash prizes as large as $1 million.
SCCG brings expertise in gaming regulatory compliance, anti-money laundering processes, and so-called Know Your Customer technologies that would be valuable for PCH and efforts to build out social and sweeps style casino platforms.
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