Summary
- In a bold move shaking up the industry, the United States' top two sweepstakes organizations have united their forces, leading to the dissolution of the SPGA.
- Gambling Insider was the first to break the news, speaking directly with the organizations involved to confirm the details of this pivotal merger.
- The recent passage of AB 831 might be the driving force behind this decision, inspiring trade groups to come together with a more unified strategy.
The Social and Promotional Gaming Association is joining forces with the Social Gaming Leadership Alliance. Together, they've uncovered new opportunities for collaboration within a unified partnership, enhancing their collective impact.
Trade groups consolidate for stronger advocacy amid US sweepstakes legal challenges
In an exclusive report by Gambling Insider, a key player in the industry news, the SPGA announced its decision to merge with the SGLA, ceasing its independent operations. Through a joint statement shared with the media, an SPGA representative expressed: We are joining forces with the SGLA to unify our efforts. A singular, strong voice is essential for our industry's success. We take great pride in our achievements and eagerly anticipate SGLA's continued guidance. For some time, these two groups have actively opposed sweeping legislative changes across the U.S. that threaten to ban the entire sector. Lawmakers are targeting sweepstakes, labeling them as illegal gambling, a viewpoint both organizations argue is flawed. The SPGA and SGLA urge open conversations with regulators, seeking a fair assessment of the sweepstakes industry rather than outright bans. Now, the SPGA's resources and membership will align with the SGLA, which is under the leadership of VGW, a major player in the sweepstakes casino world that's already battled significant opposition in various states. This merger may have been catalyzed by the recent passage of AB831 in California, which the groups perceived as a lack of opportunity for thorough debate. California legislators moved quickly, aiming to outlaw sweepstakes without sufficient discussion involving the public or industry stakeholders.
Legal momentum against the sector is already picking up steam
The SPGA and SGLA have passionately argued that targeting the sweepstakes sector and labeling it as illegal could severely hinder the country's competitive edge. Such actions would stifle innovation, scare off investors, and result in job losses, depriving millions of Americans of the chance to responsibly enjoy these games. Instead, the trade groups have consistently suggested a better route: let industry leaders and lawmakers sit down together to create a regulatory framework. This approach would not only adjust taxation but also recognize the sector's potential to boost state revenues. Both New Jersey and New York are also taking a stance against the sector, and a recent survey by the American Gaming Association highlights that most people who gamble at sweepstakes casinos are motivated by the chance to win real money.
