The sweeepstakes social casino sector in the United States is under assault. Since an effort by the state of Maryland (among others) to prohibit sweepstakes social casinos, the sector has been up in arms looking to push back against what has been a regulatory onslaught in places such as Hawaii, Mississippi and Arkansas, and New York, among others, to shutter the sector and outlaw operators.
These states have been hardly the only ones to mount this fresh assault on the sector, with New Jersey and Louisiana also acting of their own. Trade bodies have been similarly vociferous and antagonistic.
The American Gaming Association has not minced words and outright described the sector as a roundabout way to offer gambling with none of the responsibilities.
Now, a new trade group – the Social Gaming Leadership Alliance (SGLA) – joins the already existing Social and Promotional Games Association (SPGA) to protect the interests of the industry and spart with lawmakers over the legality of the industry.
This new trade group is led by VGW, the company behind a number of prominent social casino and gaming brands, Chumba Casino, Luckyland Casino and Global Poker.
The SGLA is going to be different from the SPGA, but it will similarly address these new regulatory and legal challenges and seek to raise awareness for how the model is different than that of traditional casinos.
The main argument for the trade group, argues its boss, Jeff Duncan, who is a former US House of Representatives member from South Carolina’s Third Congressional District, is that it offers free games that will always be free.
"Social games industry leaders are already investing heavily in financial security, data privacy, responsible social gameplay, and consumer protections. And they are ready and open to sensible regulation that can benefit hard-working constituents in the states where they operate," Duncan said.
He explained that the SGLA will seek to work with lawmakers and stakeholders, as well as players, to ensure that millions of Americans have the freedom to choose and play the games they love and enjoy.
Commenting on the launch of the new trade group, VGW CEO and founder Laurence Escalante did not hesitate to outline what has prompted the company to act preemptively, arguing that it was the company’s responsibility to ensure the facts about our games operations and standards are understood."
The SGLA is also looking to advocate for what the appropriate industry frameworks should be. The arrival of a new trade group is not likely to stem the tide of regulatory pushback, but it is certainly going to give the sector teeth to push back.
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