Summary
- Sweepstakes casinos have found a new ally in the Social Gaming Leadership Alliance.
- This is the second trade group, following the Social and Promotional Games Association, to advocate for the sector's interests.
- Regulators and lawmakers are launching an unprecedented crackdown on sweepstakes casinos.
The sweepstakes social casino industry in the United States is facing significant challenges. Initiated by Maryland, several states, including Hawaii, Mississippi, Arkansas, and New York, are attempting to ban these casinos. In response, the industry is rallying to counter what they perceive as a regulatory offensive threatening to shut down operations and outlaw businesses.
Sweepstakes casinos experience increased pushback
Several states have launched new challenges against the industry, with New Jersey and Louisiana taking their own actions. Trade organizations have been equally vocal and combative. The American Gaming Association has been blunt, describing the industry as a way to facilitate gambling without taking on the corresponding responsibilities. Recently, a new trade group called the Social Gaming Leadership Alliance (SGLA) has emerged to join the existing Social and Promotional Games Association (SPGA) in defending the industry's interests and debating its legality with lawmakers. The SGLA is spearheaded by VGW, the company behind well-known social casino and gaming brands such as Chumba Casino, Luckyland Casino, and Global Poker. While the SGLA will differ from the SPGA, it will similarly tackle upcoming regulatory and legal issues and work to highlight how its model differs from traditional casinos. Jeff Duncan, a former U.S. House Representative from South Carolina’s Third Congressional District and current leader of the trade group, emphasizes that their main argument is about offering free games that remain free. According to Duncan, Leaders in the social gaming industry are already heavily investing in financial security, data privacy, responsible gaming practices, and consumer protection. They are prepared to support sensible regulations that can benefit the hardworking people in the states where they operate.
Helping the public, lawmakers, and players understand what the sector is
He stated that the SGLA plans to collaborate with lawmakers, stakeholders, and players to ensure that millions of Americans have the freedom to choose and enjoy their favorite games. Commenting on the formation of the new trade group, VGW CEO and founder Laurence Escalante emphasized the company's proactive role. He argued that it is their responsibility to clarify the facts surrounding their gaming operations and standards. The SGLA also intends to advocate for appropriate industry frameworks. While the emergence of a new trade group may not completely halt regulatory challenges, it will definitely empower the sector to push back more effectively.
