Eleven online gaming operators that use the sweepstakes model to serve US-based players have come together in forming a new trade organization that is "dedicated to providing stakeholder education and advocating for the responsible operation of social and promotional games, sometimes referred to as social sweepstakes games."
The new trade group, the Social and Promotional Games Association, has formed amid increasing criticism from traditional gambling stakeholders who oppose the dual-currency model employed by sweepstakes-style sites, which do not require players to deposit real money. Instead, sweepstakes sites offer bonus 'sweeps' coins, either as giveaways or as add-ons to free-play coin purchases, which can then be used to gamble for cash or prizes.
These are the 11 firms who are founding members of the SPGA:
- 10 Ten Gaming
- Blazesoft
- Fliff
- FSG Digital
- Gold Coin Group
- High 5 Entertainment
- KHK Games
- Kickr Games
- Octacom
- Rolling Riches
- Woopla Gaming
Of interest is that the creator of and largest firm in the sweepstakes segment, Australia-based Virtual Gaming Worlds (VGW), is not a member of SPGA. VGW is the parent company of Chumba Casino, Luckyland Slots, and Global Poker.
Launch follows attack on industry by AGA
Though it's likely the SPGA has been a work in progress for some time, its launch is timely in that it follows, by just a couple of weeks, a prominent attack on the sweepstakes industry by the US's largest casino-entertainment lobbying interest, the American Gaming Association. The AGA, though it stopped just short of accusing sweepstakes sites of being illegal, declared that they are 'potentially skirt[ing] gaming laws', depriving consumers of adequate protections, and causing states to forego 'significant tax and revenue opportunities'.
In contrast, the new SPGA indirectly asserts that the AGA's claims are meritless. The SPGA's landing page advovates for player safeguards, stating, "SPGA members implement robust player protection measures, including geolocation technology, age verification processes, and responsible gaming tools, to ensure a safe and fair gaming environment for all participants."
The SPGA also touts its members' commitment to transparency: "SPGA members are required to adhere to best practices in advertising and disclosure, including clear communication about game mechanics, odds, and free entry options."
As for legality, the SPGA declares, "Each one of the SPGA’s members has established the legality of their games and platform through a thorough legal and regulatory analysis that ensures they are compliant with federal and state laws, differentiates their offerings from gambling, and provides assurance to business partners." Sweepstakes sites are widely available in most US states, though a small number of states have gambling laws that forbid sites that operate under a sweepstakes model.
The SPGA has also announced the formation of internal committees to focus on crucial areas of interest to the segment. The group has not announced any formal lobbying efforts at the present time.
