Great news – the sweepstakes industry just got a brand new trade group in the form of the Social Gaming Leadership Alliance (SGLA).
Along with the Social and Promotional Games Association (SPGA), that makes two organizations now advocating on behalf of the sweepstakes format. However, according to its website, the SGLA seems opposed to the use of that particular wording.
“Sweepstakes casinos or sweeps casinos is incorrect and inaccurate terminology. This mischaracterization fails to recognize that sweepstakes promotions are a common marketing strategy used across many U.S. industries.”
It’s likely the SGLA was formed in an effort to reduce the negative stigma projected onto the industry – and onto the associated terminology – in recent years. It could also be seen as a response to specific challenges the sector has experienced at the state level this year, with anti-sweepstakes bills being proposed in more than 10 US state legislatures; the SGLA will want to push for regulation and work to stem the flow of legislation that would potentially ban the format.
A Strong Members List
While the member companies of the already-established SPGA certainly aren’t lightweights, it’s fair to say we were wondering when the below companies would join some kind of trade group and throw their weight behind a common cause.
Virtual Gaming Worlds (VGW), the Australia-based company that operates Chumba Casino, LuckyLand Slots, and Global Poker, has been named as the founding partner of the SGLA. Joining forces with it are:
- PLAYSTUDIOS, a Las Vegas-based developer with a strong track record in the social casino space, mainly via the myVEGAS app that has links to real money casinos like MGM Resorts. PLAYSTUDIOS also recently expressed an interest in taking steps into the sweepstakes format.
- Yellow Social Interactive, one of the first sweepstakes companies and operator of the Pulsz and Pulsz Bingo brands.
- ARB Interactive, operator of the Modo.us sweepstakes platform.
- B-Two Operations, operator of numerous successful sweeps casinos, namely McLuck, Hello Millions, SpinBlitz, Mega Bonanza, PlayFame, Jackpota, and SportsMillions.
- Nuvei, a payment processor headquartered in Canada.
Notably, the SGLA has appointed former politician Jeff Duncan as Executive Director. Duncan (pictured below) served as a state representative in South Carolina before becoming a US Congressman in 2011, and will bring considerable legislative and regulatory expertise to the group.
Commenting on the launch of the SGLA, Duncan said:
“The SGLA’s partners are uniquely positioned to work with lawmakers, stakeholders and players to support innovation in digital games and ensure millions of Americans have the freedom to enjoy the games they love in a safe environment. I look forward to working with state and industry leadership to do just that.”
Laurence Escalante, founder and Chief Executive Officer of VGW, added:
“As a pioneer and market leader, we recognize the rising interest in our sector and our responsibility to both ensure the facts about our games, operations and standards are understood, and advocate for what we believe the appropriate industry frameworks should look like.”
Social Gaming Leadership Alliance: Aims and Principles
On its website, the SGLA states that its three main goals are:
- “Driving industry integrity
- Protecting players
- Advocating social gaming excellence“
It also lists four principles that its member companies agree to uphold:
- “Free to play: Online social games can always be enjoyed for free. No purchase is ever required to play.
- Responsible social gameplay: All types of online games should be safe, fun and fair. Our partners monitor behavior, train staff, and offer players tools to manage their play responsibly.
- Protecting players, platforms and the community: Best-in-class financial crime prevention, security protocols and data protection measures are a must.
- Age-restricted platforms: We believe casino-themed games are only for adults and require implementation of robust age verification processes to prevent access by minors.”
From its rhetoric so far, it’s clear the SGLA wants to help rebrand the sweepstakes space, pushing back against the negative stigma that’s built up in recent years. One way they’re doing this is by using the more neutral term ‘online social gaming’.
Whatever we call it, critics often portray the format as a legal loophole exploited in bad faith, but the SGLA counters that narrative, reminding lawmakers that these platforms always provide a free-to-play experience – according to its website, most sweeps players never make a purchase, and for those who do, the median spend is just $25 per week.
Opponents often highlight the potential for gambling addiction too, but the SGLA emphasizes that responsible gameplay tools are already in place, and that most users engage in healthy, recreational play anyway.
Still, challenges exist, particularly at the state level. In Montana, the first anti-sweepstakes bill was signed into law earlier this month, while in Connecticut, New Jersey, Nevada, Louisiana, and New York, similar proposals are still under consideration.
With a former Congressman at the helm, the SGLA will hope to exert more influence on policy discussions than the SPGA has managed so far; the group’s political savvy and unified voice could help shift the tide in regulatory circles.
Private lawsuits continue to challenge the legality of the sweepstakes format too, particularly targeting Escalante’s VGW. While these cases routinely fail to prove the model is illegal, SGLA’s voice may offer a further counterweight in the courtroom.
