The investment company Xanada Investments, specializing in the gaming sector, has announced an early-stage investment in the platform Sweepium. Xanada is investing in Sweepium to access the budding but controversial sweepstakes casino sector.
Sweepium provides a bank-approved payment system allowing the platform to adhere to compliance standards as a sweepstakes casino brand. The B2B platform partners with more than 50 game providers to provide CRM, content management and aggregation tools.
“From day one, Sweepium showed both clarity of vision and precision in execution,” said Xanada CEO Vladimir Malakchi. “Our decision to invest was driven not only by the unique positioning of the platform but by the team’s operational discipline and long-term thinking.”
The investment from Xanada will allow Sweepium to bolster its portfolio of operator partners and enhance its product capabilities. Sweepium will also be leveraging Xanada’s expertise as the investment fund will also act as a strategic advisor for the platform.
New sweepstakes casino laws in the US
Xanada is investing in a sweepstakes casino-focused company as the sector faces scrutiny from regulators and lawmakers across America.
Earlier this month, Connecticut Gov. Ned Lamont signed a piece of legislation making the operation and promotion of online sweepstakes casinos illegal in the state. The law, Public Act 25-112, considers the offering of online sweepstakes casinos a Class A misdemeanor.
Montana also prohibits the operation or promotion of online sweepstakes casinos.
Senate Bill 555 was signed in May by Montana Gov. Greg Gianforte placing a ban on online sweepstakes casinos and the offering of dual-currency systems by gaming operators.
A violation of Montana’s sweepstakes casino ban is considered a felony with up to a 10-year prison sentence. The state’s ban on sweepstakes casinos goes into effect on Oct. 1.
In New York, Gov. Kathy Hochul’s signature is the last step for a measure to ban sweepstakes casinos after the state’s Assembly unanimously passed the bill this week.
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