A new trade group has emerged to champion the interests of the social gaming and sweepstake casino industry. The Social & Promotional Games Association (SPGA) argues that online gaming businesses are legitimate despite facing many critics.
Proponents of social and sweepstakes casinos claim that these online platforms provide safe, no-risk entertainment to millions of players. Critics, however, argue that some businesses operate illegal gambling, luring players with free tokens only to have them make real money deposits and gamble for cash.
The SPGA aims to dispel these negative claims by asserting that social casinos with sweepstakes prizes adhere to the established model of social casinos while also offering promotional sweepstakes prizes for players. The association includes numerous social sweepstakes entities such as 10 Ten Gaming, Blazesoft, Fliff, FSG Digital, Gold Coin Group, High 5 Entertainment, KHK Games, Kickr Games, Octacom, Rolling Riches, and Woopla Gaming.
Social Gaming Evolution
Social gaming isn’t a new phenomenon. For years, social media users have enjoyed free-to-play online slots and table games where no actual money could be won. These businesses generate revenue by selling additional tokens after a player’s free plays are depleted.
A newer concept in social gaming involves sweepstakes. Sweepstakes casinos follow the social gaming model by giving new accounts free credits to play. When those spins or bets are exhausted, players can buy additional plays or purchase secondary virtual currency that can be used to win prizes, typically cash. Critics claim such enterprises violate state and federal gaming laws.
Industry Controversy and Defense
In a recent exposé, The Washington Post highlighted a case where a 41-year-old lost almost $100,000 on a social sweeps casino. The SPGA states that such incidences are atypical, with the majority of social sweeps customers never spending money. Over two-thirds of customers at a typical SPGA member site play for free only, according to the SPGA.
The SPGA compares its members’ business models to major retailers like Walmart and Starbucks using online sweepstakes promotions to award cash and prizes. They argue that U.S. consumers view social casinos as genuine entertainment products, having spent over $40 billion on social casino games in the last decade. Rewarding players through the well-established sweepstakes model is no different from other companies promoting the sale of consumer goods.
Despite this, some states disagree. Lawmakers and regulators in several states and jurisdictions, including Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, and Washington, DC, have declared social sweepstakes casinos to be illegal gambling and have issued cease-and-desist letters to operators like High 5 Casino.
About the SPGA
Founded earlier this year, the SPGA is a member-driven organization dedicated to educating state and federal lawmakers and the public about the social sweeps industry. SPGA members are committed to limiting real-money play to players aged 18 and older, using regulation-grade technology to verify player identities, and adhering to best practices in advertising, fair play, and consumer protection.
