Social Casino Games Industry Fights Back Against Attacks

Major buzzwords in the Australian gaming industry currently include “sweeps,” “sweepstakes,” and “social gaming.” A trade group has emerged to promote the interests of the social gaming and sweepstake casino industry. The Social & Promotional Games Association argues that online gaming businesses are legitimate despite their many critics.

Proponents of social and sweepstakes casinos claim these platforms provide entertainment to millions of players in a safe, no-risk environment. However, opponents argue that many such businesses operate as illegal gambling schemes, enticing players with free tokens before encouraging real-money deposits.

A new trade group called the Social & Promotional Games Association (SPGA) seeks to dispel these negative claims. According to the SPGA, social casinos with sweepstakes prizes “adhere to the established model of social casinos while also offering promotional sweepstakes prizes for players.”

The SPGA comprises numerous social sweeps entities, including:

• 10 Ten Gaming
• Blazesoft
• Fliff
• FSG Digital
• Gold Coin Group
• High 5 Entertainment
• KHK Games
• Kickr Games
• Octacom
• Rolling Riches
• Woopla Gaming

Social Groups Gather

Social gaming isn’t a new concept. For years, users have enjoyed free-to-play online slots and table games where no real money could be won. These businesses generate revenue by selling additional tokens once a player’s initial and ongoing free plays run out.

A newer trend within the social gaming realm involves sweeps. Sweepstakes casinos provide new accounts free credits to play. If players lose their spins or bets, they can buy additional plays or purchase a secondary virtual currency to win prizes and, typically, cash.

However, critics maintain that such enterprises violate state and federal gaming laws. For instance, The Washington Post recently highlighted a case of a player who lost nearly $100,000 on a social sweeps casino. The SPGA dismissed such incidents as atypical, stating:

The majority of social sweeps customers never spend money. Over two-thirds of customers at a typical SPGA member site are free-to-play only.

The SPGA argues that their members’ business models are similar to how major retailers like Walmart and Starbucks use online sweepstakes to award cash and prizes. Furthermore, the association claims that U.S. consumers view social casinos as genuine entertainment products, with the market spending over $40 billion on social casino games over the past decade.

Rewarding players and promoting play using the established sweepstakes model is no different than major companies using sweepstakes to promote consumer goods, such as coffee or hamburgers.

Nevertheless, certain states have taken a firm stance against these operations. Legislators and regulators in regions such as Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, and Washington, DC, deem social sweepstakes casinos illegal and have issued cease-and-desist orders to operators like High 5 Casino.

About the SPGA

Founded this year, the SPGA is a member-driven organization focused on educating lawmakers and the public about the social sweeps industry. Members have pledged to limit real-money play to individuals aged 18 and older and to adopt “regulation-grade” technology for identity verification. They also commit to best practices in advertising, fair play, and consumer protection.

In conclusion, as the social gaming and sweepstakes industry continues to grow, the establishment of the Social & Promotional Games Association aims to promote awareness, transparency, and positive regulatory frameworks, fostering a healthy environment for both operators and players.