The Social and Promotional Games Association has launched to protect players and encourage growth within the sweepstakes casino industry.
Acting as a trade body for the sector, the SPGA has brought together companies within the social casino space to uphold player protection and create a “safe, legal and engaging” social gaming environment.
“The formation of the SPGA is a critical step toward establishing a clear and cohesive voice for the social sweepstakes industry,” said Seth Schorr, CEO at FSG Digital Inc.
“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.”
Sweepstake casinos allow players to access free-to-play casinos that often operate using in-game currencies, with players not always needing to make any deposits while still being able to gain prizes.
The sector has faced much scrutiny in recent years, with some seeing social casino offerings as illegal operations due to their lack of licensing. Also, some unlicensed sweepstake casinos will allow players to make deposits to purchase in-game currencies.
The SPGA has established internal committees to focus on two key areas, player safeguards and regulatory compliance, to provide regulators, policymakers and players with “a comprehensive understanding” of sweepstakes offerings.
Under the player safeguards initiative, the SPGA will develop educational resources for players while expanding mechanisms to address consumer complaints and enhance player protection.
Meanwhile, the regulatory compliance initiative will develop policy principles to “maintain alignment with the established regulatory and legal structures that underpin social games”.
This will hope to provide regulators and policymakers with a comprehensive understanding of the compliant and consumer-first operating model of the sweepstakes sector, highlighting the ways operators ensure player protection.
“The SPGA is committed to fostering a cohesive industry voice through collaboration among member companies,” added Camilla Wright of Red Knot Communications, a spokesperson for the new industry body.
“Our goal is to provide forums for sharing knowledge and best practice mutual support and to create an environment that puts consumers first.
“By prioritising 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.”
The SPGA will kick-off these initiatives on 1 October by bringing together industry experts for a discussion on the future of social and promotional gaming.
Eilers-Krejcik’s Managing Director of Digital and Interactive Gaming, Matt Kaufman, recently came out in support of social casinos, explaining that “sweepstakes are operating within the confines of legal constructions of sweepstakes contests and are acting entirely within their rights”.