WASHINGTON DC – The Social Gaming Leadership Alliance (SGLA), a coalition of industry leaders advocating for the online social games industry, is disappointed by the passage of S. 5935-A / A. 6745-A in New York, legislation that will deprive the state’s residents of popular, free-to-play entertainment enjoyed by millions nationwide.
SGLA Executive Director and former Congressman Jeff Duncan said: “By advancing legislation that was drafted based on fundamental misunderstanding of our industry and aggressively promoted by stakeholders with a competitive interest in shutting down these platforms, New York residents could lose access to popular, free-to-play online games enjoyed by millions. Of particular concern, the discretionary powers handed to the Gaming Commission under this bill could restrict use of a popular marketing tool, hurting businesses and the New York economy in ways lawmakers did not intend.”
“Legislators raised legitimate questions about how this law would be enforced, whether federal law takes priority, and potential unintended consequences for widespread promotional activities – questions that remain unanswered because the bill was rushed through too quickly. By blurring the line between lawful sweepstakes promotions and illegal gambling, this legislation threatens a vibrant digital-entertainment sector while offering players no safer alternatives.”
“The SGLA remains committed to working with New York policymakers to develop sensible regulatory frameworks that protect consumers while preserving innovation and the freedom for residents to enjoy the same entertainment options available to Americans in other states,” said Mr. Duncan. “We believe there is an opportunity to create a comprehensive regulatory framework that provides appropriate oversight, mandates robust consumer safeguards, and recognizes the legitimate use of sweepstakes promotions.”
Setting the Record Straight
Age Verification: SGLA partners already employ robust age verification using comprehensive identity and geolocation technology to prevent minor access. Therefore, claims that all social gaming platforms lack adequate age protections are misplaced.
Consumer Protections: Our operators maintain comprehensive security protocols including anti-money laundering (AML) procedures, ‘Know Your Customer’ (KYC) frameworks, responsible gameplay tools, and adherence to payment security standards required by major financial partners. Therefore, claims that all social game operators lack consumer protections ignore these clearly defined safeguards.
Well-Established Promotional Activities: Senators rightfully questioned whether well-known promotional sweepstakes like Starbucks Stars and McDonald’s Monopoly would be affected. While assurances were given, the broad language of the legislation creates uncertainty for countless businesses across a range of industry sectors that use promotional tools similar to those employed by social gaming platforms.
To learn more about SGLA, please visit our website at www.SGLeadership.org and our social channels at LinkedIn, X, Facebook and BlueSky.
Contact:
Laurie Rossbach
Partner, Seven Letter
202.258.7810
Laurie@SevenLetter.com
About the Social Gaming Leadership Alliance
The Social Gaming Leadership Alliance (SGLA) champions social gaming operators who offer innovative, free-to-play entertainment experiences enjoyed by millions of Americans while promoting responsible digital entertainment. Our partners set the standard for innovation, world class games and the responsible use of digital marketing including sweepstakes promotions. We advocate for appropriate oversight that recognizes the unique entertainment value of social online games, protects players, platforms and the community, and promotes responsible gameplay.
The SGLA’s operator partners are VGW, PLAYSTUDIOS, Yellow Social Interactive, ARB Interactive and B-Two Operations, representing Chumba Casino, Luckyland Slots, Global Poker, Pulsz, Pulsz Bingo, Modo Casino, McLuck, HelloMillions and SpinBlitz. Other partners include major payments provider Nuvei. The SGLA’s advocacy and standards focus exclusively on online social games. Our advocacy does not extend to opera
