Sweepstakes operators join forces to launch trade body as pressure increases on vertical
Social and Promotional Gaming Association, which counts Fliff and High 5 Entertainment as founding partners, aims to create “safe, legal, and engaging social and promotional gaming experiences for American adults”
A selection of sweepstakes operators has banded together to form a new trade body as pressure on the vertical continues to ramp up from regulators and the American Gaming Association (AGA).
The newly formed Social and Promotional Gaming Association (SPGA) has vowed to champion the “well-established legality and legitimacy of social sweepstakes games”, aiming to educate regulators, policymakers, and consumers about the vertical.
Founding members of the SPGA include 10 Ten Gaming, which this week launched its own social gaming platform, Smiles.
High 5 Entertainment also forms part of the coalition. Back in June, two of its social gaming platforms, High 5 Casino and High 5 Vegas, were ruled to be illegal games by a Washington court.
Other SPGA members include BLAZESOFT, Fliff, FSG Digital, Gold Coin Studios, KHK Games, Kickr Games, Octacom, Rolling Riches, and Woopla Gaming.
Fliff hit the headlines this week after Greg Small, the Indiana Gaming Commission’s executive director, revealed he would join the company has its head of legal and government affairs.
The trade body has prioritized player safeguarding and regulatory compliance as its first initiatives.
The group said it will develop educational resources for consumers, expand mechanisms to address consumer complaints, while continuing to implement best practices for KYC, age verification, geolocation, and play and spending controls.
On the compliance side, the SGPA plans to liaise with regulators to develop policies for sweepstake gaming, while ensuring lawmakers have a comprehensive understanding of the sweepstake gaming model.
The SGPA will hold a webinar on October 1 featuring industry leaders to discuss the future of social and promotional gaming in the US.
In August, the AGA warned regulators they had to be wary of sweepstakes casinos that were looking to take advantage of regulatory loopholes.
Seth Schorr, FSG Digital CEO, said: “The formation of the SPGA is a critical step toward establishing a clear and cohesive voice for the social sweepstakes industry.
“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.”
Red Knot Communications’ Camilla Wright, a spokesperson for the SGPA, added: “Our goal is to provide forums for sharing knowledge and best practice mutual support and to create an environment that puts consumers first.
“By prioritizing 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.”
Earlier this week, Novig relaunched its platform across the US after rebranding as a sweepstakes operator having initially started life as a real-money betting exchange.
The company had initially launched its platform in Colorado in January before pulling out of the state in April.
Analyst firm Eilers & Krejcik Gaming estimated the sweepstake gaming industry was worth $5.6bn in 2023, with projections of the sector reaching $11bn in valuation by 2025.