SGLA Adds Paysafe as Newest Industry Partner
The Social Gaming Leadership Alliance has added payments provider Paysafe as a new partner amid growing regulatory scrutiny of the U.S. social gaming sector.
LISTEN TO THIS ARTICLE:The trade group said the partnership will support its push for a regulated framework for social gaming and stronger player protections.
Paysafe, which processes payments in 48 currencies and supports more than 260 payment methods, brings nearly three decades of online payments experience to the SGLA. The company has expanded its services across the U.S. market and was recently recognised in industry listings as a leading fintech and global company to watch.
Zak Cutler, president of global gaming at Paysafe, said the company was joining the SGLA to back the group’s work on responsible social gaming. “We are proud to join the SGLA and support its work promoting safe, responsible, and innovative Social Plus games”, Cutler said. “As a global payments leader, we are committed to providing secure and reliable solutions that enhance player experiences while protecting the integrity of the gaming ecosystem.”
Paysafe joins an alliance that includes founding operator partners VGW, PlayStudios, Yellow Social Interactive, ARB Interactive and B-Two Operations, which operate prominent sweepstakes and social casino brands. Major payments provider Nuvei is also listed among SGLA partners.
Sean Ostrow, managing director of the SGLA, highlighted Paysafe’s technical and regulatory strengths.
Paysafe’s global payments experience strongly aligns with SGLA’s commitment to player protections and industry integrity. The company’s technical capabilities, industry perspective and significant U.S. footprint will meaningfully support our work with policymakers and stakeholders.”
Related: SGLA Hosts Own Expo to Educate About Social Gaming
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Regulatory Pressure Mounts
The partnership comes at a politically sensitive moment for the sweepstakes and social casino industry. Over the past year, multiple state legislatures have considered measures that would restrict or ban sweepstakes-style casino games. Lawmakers in states such as Maine, Maryland, Indiana, Mississippi and Virginia have proposed bills that would curtail aspects of the business model, and regulators in California have taken enforcement actions that effectively halted certain sweepstakes gameplay earlier in the year.
In response to that legislative pressure, the SGLA has been lobbying for what it describes as a sensible regulatory framework that would allow the “social plus” sector to operate under clear rules, contribute tax revenue and register operators with state authorities. The alliance argues that properly regulated operators deliver consumer protections, while bans risk pushing players toward unregulated and potentially illicit services.
Last week, state lawmakers in Maine debated draft legislation that would prohibit a form of sweepstakes gameplay known as Sweeps Coin. SGLA representatives warned that a ban could drive legitimate companies out of the state while leaving illegal operators in place. In Indiana, several members of a House public policy committee have expressed reservations about imposing bans, signalling that a consensus has not yet formed in every jurisdiction considering restrictions.
Payments companies like Paysafe can play a material role in those conversations by demonstrating how transaction monitoring, identity verification and fraud controls can be integrated into social gaming ecosystems to meet regulatory expectations. Industry observers say the addition of a large payments provider strengthens the SGLA’s ability to make technical and compliance-based arguments to policymakers.
With states moving at different speeds on potential restrictions and with recent enforcement activity in major markets, the clash between regulators and the social gaming industry is likely to continue. For now, SGLA partners are emphasizing dialogue with lawmakers and regulators to secure a framework that permits lawful operators to remain in-market while safeguarding consumers.
Looking ahead, the outcome of legislative debates in key states and the capacity of industry participants to demonstrate robust compliance practices will determine whether social plus games can sustain a regulated presence in the U.S. market.
RELATED TOPICS: Regulation
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