Industry leaders have announced the formation of the Social and Promotional Gaming Association (SPGA), a new organization dedicated to advocating for responsible practices and consumer protections within the social and promotional gaming sector, often referred to as social sweepstakes games.

The SPGA aims to underscore the legality and legitimacy of these games, which allow American adults to participate in online gaming for free with opportunities to win prizes. The association seeks to ensure that these platforms remain safe, legal, and enjoyable by providing education and working closely with regulators and policymakers.

“Our mission is to emphasize the well-established legality and responsible enjoyment of social sweepstakes games,” said Seth Schorr, CEO of FSG Digital Inc. “By creating this association, we are committed to helping regulators and policymakers understand how our industry’s products operate and comply with state and federal laws.”

To support its goals, the SPGA has established two key committees:

– Player Safeguards Committee: This committee is tasked with developing educational resources to promote safe gaming, addressing consumer complaints, and implementing technologies for Know Your Customer (KYC), age verification, and spending controls.
 
– Regulatory Compliance Committee: This group focuses on aligning industry practices with regulatory frameworks, helping regulators understand the compliant operation of social sweepstakes games and the measures operators take to ensure consumer protection.

The launch of the SPGA comes as the sweepstakes gaming sector faces heightened scrutiny. The American Gaming Association has recently called for a crackdown on sweepstakes-based gaming models, urging investigations to ensure compliance with legal standards. Additionally, reports have surfaced about unpaid affiliate partners, further intensifying concerns about the industry’s practices.

Among the founding members of the SPGA are Blazesoft, FSG Digital, Gold Coin Group, and several other companies. Notably, VGW, a major player in the industry, is not among the initial members of the newly formed group.

To kick off its initiatives, the SPGA will host a webinar on October 1, 2024. The event will bring together industry experts to explore emerging trends, regulatory landscapes, and best practices for sustainable growth in the social and promotional gaming sector.

Camilla Wright of Red Knot Communications, spokesperson for the SPGA, emphasized the organization’s commitment to fostering collaboration and knowledge sharing among member companies. “Our goal is to provide forums for sharing best practices and to create an environment that prioritizes consumer protection,” Wright said. “By prioritizing transparency and responsible practices, we aim to ensure that millions of adult American consumers can continue to enjoy this form of online entertainment with confidence.”