VGW, the company behind Luckyland Casino, Chumba Casino, and Global Poker, has established a new sweepstakes casino advocate group, Social Gaming Leadership Alliance (SGLA).
The alliance includes other sweepstakes casino operators such as B-Two Operations (McLuck, Hello Millions, Spin Blitz), Yellow Social Interactive (Pulsz), ARB Interactive (Modo Casino), and PLAYSTUDIOS (MyVegas).
The group is distinct from the already present Social and Promotional Games Association (SPGA), but will campaign in much the same way against increased regulation of social gaming amid increased regulatory and legal scrutiny.
Give Americans freedom to enjoy games they love
The SGLA website reports the group’s aim to “advocate for appropriate oversight that recognizes the unique entertainment value of social online games, protects players, platforms and the community, and promotes responsible gameplay.”
Jeff Duncan, a former member of the U.S. House of Representatives from South Carolina’s Third Congressional District, takes the role of executive director. Duncan commented on the group’s formation,
“Social games industry leaders are already investing heavily in financial security, data privacy, responsible social gameplay and consumer protections. And they are ready and open to sensible regulation that can benefit hard-working constituents in the states where they operate.
“The SGLA’s partners are uniquely positioned to work with lawmakers, stakeholders and players to support innovation in digital games and ensure millions of Americans have the freedom to enjoy the games they love in a safe environment. I look forward to working with state and industry leadership to do just that.”
Focus exclusively on sweepstakes casinos
The group will focus purely on social and sweepstakes platforms and has explicitly stated it has no intention of lobbying for sports betting or crypto casinos. The SGLA stated, “Our advocacy does not extend to operators offering sports products or transacting in cryptocurrency.”
VGW had entered the sports betting industry with its Fendoff brand, but abandoned the project in favor of focusing on its sweepstakes model.
The SGLA’s puts forward its core principles as emphasizing:
- Free to play: Online social games can always be enjoyed for free. No purchase is ever required to play.
- Responsible social gameplay: All types of online games should be safe, fun and fair. Our partners monitor behavior, train staff, and offer players tools to manage their play responsibly.
- Protecting players, platforms and the community: Best-in-class financial crime prevention, security protocols and data protection measures are a must.
- Age-restricted platforms: We believe casino-themed games are only for adults and require implementation of robust age verification processes to prevent access by minors.
Critics argue that although some games are free-to-play, users can also lose large sums of money playing casino-style games, and the lack of regulatory oversight means players do not have the same levels of protection as regulated online casinos.
Sweeps rise amid regulatory scrutiny
The group is formed amid increased scrutiny from regulators and lawmakers. A bill in New Jersey restricting the dual-currency model of platforms has been making progress, while there are also active bills in Louisiana, Montana, Connecticut, and New York.
Previous efforts by lawmakers in Florida, Arkansas, Maryland, and Mississippi failed to make progress due to various legislative challenges and disagreements.
With a lack of clear oversight, the industry continues to grow. Revenue increased from $460 million in 2019 to over $8 billion last year. Projections estimate that the figure will grow to over $12 billion by 2031.
In the first half of the 2024 fiscal year, VGW achieved a net profit of $207 million on $2.8 billion in revenue, representing a 23% increase in profit and a 29% increase in revenue compared to 2023.
VGW promoting player protection
VGW founder and CEO Laurence Escalante commented on the formation of the SGLA in a statement, “As a pioneer and market leader, we recognize the rising interest in our sector and our responsibility to both ensure the facts about our games, operations and standards are understood, and advocate for what we believe the appropriate industry frameworks should look like.
“VGW has consistently led the way in innovation and player-first practices. Now, we’re excited to establish this Alliance with like-minded partners to take this further, promoting the highest standards of player protection and industry integrity while advocating for sensible regulatory frameworks that reflect the role of online social games as a safe and growing component of the interactive entertainment industry.”
The company has faced scrutiny from lawmakers and investors alike. Escalante recently made news in a rant to investors over the transparency of the company’s financial reporting.
The SPGA has already been active in opposing bills to restrict sweepstakes and social casino regulations. Time will tell whether the introduction of the SGLA makes a difference to the future of the industry.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
