New Social Gaming Group Hopes to Stop Attacks on Sweepstakes Casinos
A coalition of major companies in the social gaming space has launched a new organization to promote higher industry standards and push back against increasing legislative and regulatory challenges targeting sweepstakes casinos. Virtual Gaming Worlds (VGW), the operator behind titles like Chumba Casino and Global Poker, is at the forefront of this effort with the establishment of the Social Gaming Leadership Alliance (SGLA).
LISTEN TO THIS ARTICLE:The newly formed SGLA aims to reinforce responsible gaming practices by emphasizing four central pillars: maintaining free-to-play access, fostering healthy gaming habits, securing user safety and data, and ensuring that only users of appropriate age can participate. These goals are intended to create a unified approach to addressing legal and ethical concerns surrounding sweepstakes-style games.
Related: New York Senate Approves Bill to Ban Sweepstakes CasinosAlongside VGW, the founding members of the alliance include PlayStudios, Yellow Social Interactive—the company that runs Pulsz—ARB Interactive, which operates Modo Casino, B-Two Operations, and financial technology provider Nuvei. Oversight of the SGLA will be led by former US Rep. Jeff Duncan, who has been named the group's executive director.
Duncan explained that many of the companies involved have already invested in improving their approaches to data protection, financial oversight, and user safety. He noted that the alliance is open to working with policymakers to develop sensible rules that support both players and the broader ecosystem of the gaming industry.
He also stated that the SGLA intends to collaborate closely with legislators, business leaders, and stakeholders across the sector to foster innovation in the digital gaming world while ensuring that consumer trust and safety remain at the forefront.
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SGLA to Promote Best Practices in Sweepstakes Vertical
Laurence Escalante, CEO of VGW, described the company's track record of innovation and commitment to player welfare, framing the creation of the SGLA as a significant next step in promoting ethical standards in social gaming. He also emphasized the importance of aligning regulation with the realities of the digital entertainment landscape, particularly in how social games are enjoyed by millions of users.
Patrick Fechtmeyer, CEO of ARB Interactive, pointed to the fast-paced growth of social gaming as a reason for more open and informed conversations about its direction. He stressed the need for partnerships that protect users while also supporting the sustainability of the industry's business model.
The SGLA is actively working to expand its membership, although it operates independently from the Social and Promotional Games Association, which includes a different set of companies. The alliance was formed in response to mounting legal and political pressure on sweepstakes-based platforms, as numerous US states explore potential reforms that could reshape how these games are offered, regulated and taxed.
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