Social Gaming Industry Forms New Trade Group to Counter Growing Criticism

Social Gaming Industry Forms New Trade Group to Counter Growing Criticism

By Michael Thompson

December 13, 2024 at 05:47 PM

A new trade association called the Social & Promotional Games Association (SPGA) has formed to advocate for and regulate the growing social gaming industry. The group represents major players including 10 Ten Gaming, Blazesoft, Fliff, and other prominent social gaming companies.

Logo of Social Gaming Association

Logo of Social Gaming Association

Social gaming platforms typically offer free-to-play casino-style games where players receive complimentary tokens. While traditional social casinos focus purely on entertainment, newer sweepstakes models allow players to win real prizes and cash through a secondary virtual currency system.

The SPGA aims to counter criticism that these platforms enable illegal gambling. According to the association, over two-thirds of users never spend money, and their business model mirrors promotional sweepstakes used by major retailers like Walmart and Starbucks.

Key statistics show U.S. consumers have spent over $40 billion on social casino games in the past decade. However, some states including Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, and Washington, DC have declared certain social sweepstakes casinos illegal and issued cease and desist orders.

The SPGA's core commitments include:

  • Restricting real-money play to ages 18+
  • Using regulation-grade identity verification
  • Following best practices in advertising
  • Ensuring consumer protection
  • Maintaining fair play standards

While proponents argue these platforms provide safe entertainment, critics point to cases like a recent Washington Post report of a player losing $100,000 on a social sweeps casino. The SPGA maintains such cases are rare exceptions rather than the norm.

The association, founded in 2024, serves as an educational resource for lawmakers and the public while working to establish industry standards and responsible gaming practices.

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