VGW Leads New Sweepstakes Advocate Group, Social Gaming Leadership Alliance

The alliance includes other sweepstakes casino operators such as B-Two Operations (McLuck, Hello Millions, Spin Blitz), Yellow Social Interactive (Pulsz), ARB Interactive (Modo Casino), and PLAYSTUDIOS (MyVegas).

The group is distinct from the already present Social and Promotional Games Association (SPGA), but will campaign in much the same way against increased regulation of social gaming amid increased regulatory and legal scrutiny.

Give Americans freedom to enjoy games they love

The SGLA website reports the group’s aim to “advocate for appropriate oversight that recognizes the unique entertainment value of social online games, protects players, platforms and the community, and promotes responsible gameplay.”

“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.”

Focus exclusively on sweepstakes casinos

The group will focus purely on social and sweepstakes platforms and has explicitly stated it has no intention of lobbying for sports betting or crypto casinos. The SGLA stated, “Our advocacy does not extend to operators offering sports products or transacting in cryptocurrency.”

The SGLA’s puts forward its core principles as emphasizing:

• 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: Sweepstakes Casino VGW Forms Social Gaming Leadership Alliance

Critics argue that although some games are free-to-play, users can also lose large sums of money playing casino-style games, and the lack of regulatory oversight means players do not have the same levels of protection as regulated online casinos.

Sweeps rise amid regulatory scrutiny

The group is formed amid increased scrutiny from regulators and lawmakers. A bill in New Jersey restricting the dual-currency model of platforms has been making progress, while there are also active bills in Louisiana, Montana, Connecticut, and New York.

Previous efforts by lawmakers in Florida, Arkansas, Maryland, and Mississippi failed to make progress due to various legislative challenges and disagreements.

With a lack of clear oversight, the industry continues to grow. Revenue increased from $460 million in 2019 to over $8 billion last year. Projections estimate that the figure will grow to over $12 billion by 2031.

VGW promoting player protection

“VGW has consistently led the way in innovation and player-first practices. Now, we’re excited to establish this Alliance with like-minded partners to take this further, promoting the highest standards of player protection and industry integrity while advocating for sensible regulatory frameworks that reflect the role of online social games as a safe and growing component of the interactive entertainment industry.”

The company has faced scrutiny from lawmakers and investors alike. Escalante recently made news in a rant to investors over the transparency of the company’s financial reporting.

The SPGA has already been active in opposing bills to restrict sweepstakes and social casino regulations. Time will tell whether the introduction of the SGLA makes a difference to the future of the industry.

Adam Roarty

Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.