ARB Interactive CEO Says Sweepstakes Operators Chose Negotiation Over Litigation as State Crackdowns Mount
ARB Interactive CEO Patrick Fechtmeyer says the sweepstakes casino industry has deliberately chosen state-by-state political engagement over the litigation path prediction market platforms have pursued — with mixed results.
Patrick Fechtmeyer, CEO of ARB Interactive, told Gambling Insider in a recent interview that the sweepstakes casino industry has consciously chosen a strategy of state-by-state legislative engagement rather than pursuing the litigation approach that prediction market platforms have adopted against state restrictions. The comments offer a rare window into the sweepstakes industry’s strategic thinking at a moment when multiple states have passed or are considering bans.
ARB Interactive is a sweepstakes casino platform operator. Fechtmeyer’s remarks come as the industry faces a wave of legislative action in 2026 that has significantly shrunk the map of states where sweepstakes casinos can operate freely.
Negotiation vs. Litigation as a Strategy
The contrast Fechtmeyer drew with prediction market operators is stark. Companies like Kalshi and Polymarket have taken an aggressive legal stance, supporting CFTC lawsuits against states that attempt to restrict their platforms. The CFTC has now sued Arizona, Connecticut, Illinois, New York, and Minnesota over state-level prediction market restrictions. Sweepstakes casinos, by contrast, have not pursued a similar federal preemption argument, opting instead to work with state legislators to either delay bans, carve out licensing pathways, or shape the language of enforcement bills in ways that are less damaging to the industry.
The results of that strategy have been mixed. Oklahoma overrode its governor’s veto to enact a sweepstakes casino ban that takes effect November 1, classifying violations as a Class C felony. Indiana and Maine have both passed outright bans effective July 2026. California and New Jersey enacted prohibitions in 2025 and earlier this year respectively. Iowa chose a middle path, signing a bill that gives its regulator cease-and-desist authority over sweepstakes operators without banning the model by name.
What the Industry Faces Going Forward
Fechtmeyer’s comments suggest that sweepstakes operators see their best path forward as working within the political process rather than challenging state authority in federal court. That approach has kept some markets open — states like Florida, Texas, and Georgia have not enacted bans — but has not prevented the industry from losing access to some of its most populous state markets.
The sweepstakes casino model, which uses dual-currency systems of Gold Coins and Sweeps Coins to avoid qualifying as gambling under most state laws, has faced increasing scrutiny from both state gambling regulators and legislators who argue the products function as de facto casino gaming. For players in states where sweepstakes casinos are still available, the legislative landscape is worth monitoring. The state-by-state legal map for sweepstakes has changed significantly in just the past six months and is likely to continue evolving through 2026 and beyond.