New SPGA Trade Association Formed by Multiple Sweepstakes Companies

In a notable shift towards transparency and regulatory engagement, ten leading sweepstakes operators have come together to establish the Social and Promotional Gaming Association (SPGA). Announced last Thursday, this new trade association aims to clarify the legality and establish the legitimacy of social sweepstakes games through better communication with regulators, policymakers, and the public.

The SPGA is poised to take a proactive stance in educating and informing stakeholders about the intricacies and legalities of the sweepstakes sector. “The formation of the SPGA is a critical step toward establishing a clear and cohesive voice for the social sweepstakes industry,” said Seth Schorr, CEO at FSG Digital Inc., one of the founding members. The association’s mission, as stated on its official website, is to provide a well-rounded understanding of the social sweepstakes games, emphasizing their compliance with current legal frameworks.

The SPGA has structured itself around two pivotal committees focusing on player safeguards and regulatory compliance, underscoring its commitment to responsible gaming and adherence to legal standards. This structured approach aims to enhance the industry’s standing and ensure that the games offered are both enjoyable and secure for players.

Notable Absences and Industry Dynamics

While the association boasts a diverse group of founding members such as 10 Ten Gaming, Blazesoft, and High 5 Entertainment, notable by its absence is VGW, the largest operator in the sweepstakes space, known for popular brands like Chumba, Luckyland, and Global Poker. This omission highlights the varied approaches within the industry towards handling regulatory and public relations challenges.

The initiative by SPGA comes at a time when sweepstakes operators face increasing scrutiny. The American Gaming Association (AGA) recently articulated concerns over the sweepstakes model, suggesting a need for clearer regulations to close existing loopholes that might be exploited by unlicensed entities. This backdrop makes the SPGA’s mission even more pertinent as it seeks to foster a more transparent and regulated environment.

Operators within the SPGA are responding to this scrutiny by advocating for clearer laws that define and regulate their operations akin to other gaming and betting platforms. The recent actions by states like Michigan and Delaware, sending cease and desist notices to major operators like VGW, underscore the urgency for a unified industry voice to engage with legal frameworks effectively.

Expansion Amidst Challenges

Despite regulatory challenges, the sweepstakes sector continues to grow, with new platforms launching even as some transition from regulated sportsbooks to the sweepstakes model. This growth signifies a robust interest and market potential for sweepstakes games, which SPGA aims to cultivate responsibly.

As the SPGA navigates these complex regulatory waters, its role will be crucial in shaping the future landscape of the sweepstakes industry. By aligning with legal standards and fostering a secure gaming environment, the SPGA not only aims to protect player interests but also to solidify the operational footing of its members across various jurisdictions.