A group of sweepstakes casinos stakeholders has formed a coalition aimed at supporting the social online sportsbook and casino industry.
Key Takeaways
- Operators, service providers, and sweepstakes players recently formed the SGLA
- Former U.S. Congressman Jeff Duncan has been named executive director
- Social gaming group hopes to work with state lawmakers and regulators who are trying to ban sweepstakes companies
The Social Gaming Leadership Alliance (SGLA) recently announced that operators, service providers, and players “who share the same passion about the many benefits of this well-established industry” have come together to advocate responsible innovation, player protections, and gaming integrity.
The group, which says it supports oversight, plans to engage legislators, regulators, media, the general public, and others at a time when several states are looking to force unregulated sweepstakes operators out, especially in legal sports betting and/or iGaming markets.
“Social games industry leaders are already investing heavily in financial security, data privacy, responsible social gameplay, and consumer protections,” said newly-appointed SGLA Executive Director Jeff Duncan, a former U.S. Congressman of South Carolina.
“And they are ready and open to sensible regulation that can benefit hard-working constituents in the states where they operate.”
The battle
Sweepstakes operators have grown greatly in popularity by marketing through celebrities and offering free-to-play games through virtual currency.
Many allow users to purchase more digital coins and exchange them for real cash and prizes, violating state laws and regulations in certain jurisdictions. Social gaming is creating major revenue for those unlicensed companies, but despite the popularity, the online form of gaming has many opponents to the SGLA’s mission.
Nearly a dozen jurisdictions, including Michigan, have sent cease-and-desist letters to social sportsbook and casino companies. Numerous state legislators have introduced bills in 2025 that would ban sweepstakes gaming. Louisiana legislature passed one last month. New York, which doesn’t offer legal iGaming, is getting closer to outlawing it.
Lawmakers in Ohio, which is considering legalizing online casinos, recently introduced a bill to ban sweepstakes gaming.
In states with limited or no legal gambling, like California, sweepstakes operators are providing a method of gaming that’s being challenged by lawmakers and tribal nations.
“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,” Duncan said.
"I look forward to working with state and industry leadership to do just that.”
The message
Operators VDW, PLAYSTUDIOS, Yellow Social Interactive, ARB Interactive, and B-Two Operations are among the partners in the SGLA. Payment provider Nuvei is also in the alliance.
“The surge in online social gaming highlights the need for clear, fact-based dialogue that reflects our industry’s commitment to safe, fun, and free-to-play entertainment,” Patrick Fechtmeyer, CEO of ARB Interactive, said.
The SGLA’s goal is to educate on its industry stances. That includes allowing no-purchase gaming, offering responsible social gameplay, crime prevention, security protocols, data protection, and age verification processes, the alliance said.
“As a market leader in our sector, we agree it’s time for a more informed conversation about online social games and acknowledge we have a role to play to both inform that discussion and advocate for what we believe appropriate frameworks and requirements in the future look like,” a Yellow Social Interactive spokesperson said. “That’s why we’re proud to support the SGLA, which brings together industry leaders to advance these shared goals.”
