Sweepstakes Casino Operators Join Forces to Support the Gaming Vertical
On September 5, eleven companies involved in the sweepstakes and social gaming sector announced the formation of the Social and Promotional Gaming Association (SPGA). This new association aims to advocate for the responsible operation of social and sweepstakes casinos, often referred to as social sweepstakes games. According to the SPGA’s press release, the group’s mission is to educate stakeholders and promote best practices within the industry.
The Blazesoft logo on its website. (Source: Blazesoft)
LISTEN TO THIS ARTICLE:The formation of the SPGA follows increased scrutiny from the American Gaming Association (AGA), which represents regulated casinos and online operators. Just two weeks ago, the AGA issued a memo urging a closer examination of the legal status of sweepstakes gaming operators. These operators often utilize a sweepstakes model that some have described as legally ambiguous, prompting a call for clearer guidelines on how such platforms should be regulated.
Sweepstakes casinos operate under a distinct model that differentiates them from traditional online gambling platforms. In essence, they allow players to participate in casino-style games using virtual currency.
Real money can be exchanged to purchase virtual currency, but the gameplay itself occurs without direct monetary stakes. Instead, players can earn sweepstakes entries or additional virtual currency as rewards, which may be redeemable for real money or prizes. The use of this model leverages existing sweepstakes laws, allowing these platforms to operate legally in states where traditional online gambling may be restricted.
This sweepstakes model has faced legal challenges in several states, including Michigan, Delaware, and Washington, which have sought to restrict the operation of such platforms. These states argue that the model circumvents gambling laws, while operators contend that they are complying with existing regulations by offering games of skill or chance tied to sweepstakes rules.
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Fliff, High 5 Among the Founders
The founding members of the SPGA include notable companies such as 10 Ten Gaming, Blazesoft, Fliff, High 5, FSG Digital, Gold Coin Group, and several others. These companies, which operate sweepstakes and social gaming sites, aim to establish unified standards for their operations. According to Seth Schorr, CEO of FSG Digital, the creation of the SPGA marks a critical step toward offering a "clear and cohesive voice" for the sweepstakes gaming industry. Schorr highlighted the group’s commitment to educating regulators and policymakers about how these platforms function and ensuring they comply with state and federal laws.
The SPGA also emphasizes the importance of responsible innovation in the gaming industry. As outlined on its website, the association aims to protect players and promote integrity within the sector. While social sweepstakes games provide a fun and engaging experience, the SPGA insists that player safety and transparency remain top priorities. By advocating for clear and consistent regulations, the SPGA believes it can help the industry continue to grow while fostering a safe and enjoyable environment for players.
The SPGA hopes it can play a key role in shaping the future of the industry. By uniting platforms under a common banner, the association hopes to bring greater legitimacy and accountability to social and promotional gaming. With millions of players enjoying these games across the US, the SPGA’s work could have a lasting impact on how these platforms are regulated and perceived by the public and lawmakers.
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