Modernized regulation could unlock $30 million+ in state revenue while strengthening consumer protections
WASHINGTON, DC – The Social Gaming Leadership Alliance (SGLA) today released new economic modeling showing that a regulated Social Plus games industry could generate more than $30 million in new annual revenue for the Commonwealth of Virginia.
The report, conducted by industry-leading research firm Eilers&Krejcik, illustrates how developing a regulatory framework tailored to this distinct digital entertainment category can strengthen industry-wide consumer protections, provide regulatory clarity, and secure meaningful, consistent new revenue for the Commonwealth.
Approximately 340,000 Virginia adults enjoy Social Plus platforms that deliver interactive board, card and casino-style games, which have been available in the Commonwealth since 2012. These platforms are always free-to-play and restricted to players over the age of 21.
However, both SB118 and HB161 would abruptly end the Social Plus industry by requiring “sweepstakes” operators to become licensed under the same regime as iGaming, which is wholly incompatible with the Social Plus industry and the economic realities of free-to-play social games. Rather than forcing longstanding businesses out of Virginia without a fulsome debate, the SGLA is urging lawmakers to give Social Plus games the same study and deliberation that they have given to daily fantasy sports, sports betting, and now iGaming.
The policy debate comes as voters signal clear support for Social Plus regulation over prohibition. A nationwide survey found that 84% of Americans support modernizing laws to regulate and tax online social games. Voters overwhelmingly indicate that lawmakers should prioritize pressing economic challenges like inflation and the high cost of living, health care and immigration, rather than banning popular, free-to-play entertainment options.
“The Virginia legislature faces an important choice,” said Sean Ostrow, Managing Director of the Social Gaming Leadership Alliance. “Lawmakers can effectively ban an established Social Plus industry that has operated in Virginia since 2012, or they can implement a thoughtful regulatory framework that protects consumers and generates more than $30 million in new annual revenue for the Commonwealth.”
SGLA urges the General Assembly to request the Lottery conduct a comprehensive study of Social Plus games.
To learn more about SGLA, please visit our website at www.SGLeadership.org and our social channels at LinkedIn, X, and Facebook.
Contact:
Laurie Rossbach
Partner, Seven Letter
202.258.7810
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, Publishers Clearing House, McLuck, HelloMillions and SpinBlitz. Other partners include major payments providers Nuvei and Paysafe. The SGLA’s advocacy and standards focus exclusively on online social games. Our advocacy does not extend to operators offering sports products or transacting in cryptocurrency.
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