As sweepstakes gaming grows in popularity, some of the industry's biggest players hope a new initiative will help mitigate concerns and bolster the format's legitimacy.
Launched last week, the Social and Promotional Gaming Association (SPGA) is an organization dedicated to providing stakeholder education and advocating for the responsible operation of social sweepstakes games. The SPGA was formed by nearly a dozen sweeps industry leaders including Blazesoft, FSG Digital, and Gold Coin Group.
“The SPGA is committed to fostering a cohesive industry voice through collaboration among member companies, said Camilla Wright, a SPGA spokesperson and partner at Red Knot Communications. "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.”
Sweeps' growing scrutiny
Sweepstakes casinos differ from other online betting sites by allowing users to play slots, table games, and other casino games without directly wagering real money. Instead, players purchase virtual tokens, often called Gold Coins or Sweeps Coins, which are used to wager and can be redeemed as prizes.
Although readily available in many U.S. states, sweepstakes casinos are not subject to U.S. gambling regulations. As such, regulators have repeatedly questioned the legality of sweepstakes casinos.
In response to regulator scrutiny, the SPGA is looking to educate both consumers and stakeholders on the legality and legitimacy of sweepstakes games.
SPGA sub-committees
The SPGA has established individual committees within the organization to focus on the most important components of the social gaming industry. In doing so, the association hopes to promote transparency, compliance, and consumer protection, three of the cornerstones of online gaming.
The Player Safeguards Committee is responsible for creating educational resources on safe and responsible gambling practices for adult consumers. The committee will expand on existing mechanisms to successfully address complaints, guarantee fair treatment for players, and enhance player protection measures. It will also continue to provide the latest technology for geolocation, age verification, and account limit controls.
The Regulatory Compliance Committee will develop a policy to ensure operators adhere to the legal and regulatory structures already in place. The committee will give both policymakers and regulators in-depth information on the consumer-first model of sweepstakes games, and demonstrate the steps taken by operators to not only ensure that players are of legal gambling age, but limit fraud and give players control of the user experience.
Putting consumers first
“The formation of the SPGA is a critical step toward establishing a clear and cohesive voice for the social sweepstakes industry,” said FSG Digital CEO Seth Schorr. “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.”
On Oct. 1, the SPGA will hold a webinar where operators and industry experts can collaborate and discuss the future of the sweepstakes casino model. The discussion will include topics like the regulatory landscape, emerging trends, and best practices of the sweeps industry.
