Social gaming and sweepstakes operators have joined forces and launched the Social and Promotional Gaming Association (SPGA).
The trade organisation provides stakeholder education and advocates for the responsible operation of social and promotional games, often called social sweepstakes games.
Among the founding members are 10 Ten Gaming, Blazesoft, Fliff, FSG Digital, Gold Coin Group, High 5 Entertainment, KHK Games, Kickr Games, Octacom, Rolling Riches and Woopla Gaming.
The mission of the SPGA is to emphasise the legality and legitimacy of social sweepstakes games, especially as their popularity continues to rise.
The organisation will work closely with regulators, policymakers, and consumers to ensure a comprehensive understanding of these gaming platforms.
Recent criticism
The sweepstakes gaming sector has recently come under increased scrutiny.
Last month, the American Gaming Association (AGA) has called for a crackdown on sweepstakes-based gaming models, urging state gaming regulators and attorney generals to investigate these companies to ensure they comply with legal requirements.
Additionally, NEXT.io revealed that Sweepslots operator Regal Technologies LLC has failed to pay several affiliate partners for first-time purchaser deals, further fuelling concerns about the industry’s practices.
Two committees
“The formation of the SPGA is a critical step toward establishing a clear and cohesive voice for the social sweepstakes industry,” said FSG Digital CEO Seth Schorr (pictured).
“By creating this association, we are committed to helping regulators and policymakers understand how our industry’s products work and how they comply with the appropriate state and federal laws.”
To achieve its goals, the SPGA has created internal committees focused on key areas of the industry.
The Player Safeguards committee is developing educational resources to ensure safe and responsible participation in social gaming, expanding mechanisms for addressing consumer complaints, and enhancing player protections through Know Your Customer (KYC) protocols, age verification, geolocation, and spending controls.
The Regulatory Compliance committee is creating policy principles that align with existing regulations, helping regulators understand the “compliant and consumer-first operating model” of social sweepstakes games, including the steps operators already take to ensure age and identity verification, limit fraud, and to provide consumers with control over their play experience.
Collaboration and knowledge sharing
“The SPGA is committed to fostering a cohesive industry voice through collaboration among member companies,” said Camilla Wright of Red Knot Communications, a spokesperson for the new industry body.
“Our goal is to provide forums for sharing knowledge and best practice mutual support and to create an environment that puts consumers first.
“By prioritising transparency and responsible practices and communicating this effectively, we will have an industry that thrives as it ensures that millions of adult American consumers can continue this form of online entertainment with confidence,” Wright added.
The organisation restricts membership to companies with US-facing social and promotional gaming platforms that have a thorough analysis which supports their legal and regulatory compliance.
VGW, one of the largest players in the industry, is not included among the members of the newly established advocacy group.
To kick off its initiatives, the SPGA will host a webinar on 1 October, bringing together industry experts to discuss the future of social and promotional gaming.
This event will explore emerging trends, regulatory landscapes, and best practices to ensure the industry’s sustainable growth.
