Social gaming platforms offer engaging, interactive experiences where players can enjoy board, card and casino-style games without payment.
Online social games are a mainstream digital entertainment category that delivers interactive board, card, and casino-style games to millions of Americans. Platforms provide free-to-play experiences where players can always participate without payment, with optional in-game purchases to enhance and extend gameplay.
Like many U.S. retailers and other businesses, large and small, across various industries, social gaming operators may market their digital entertainment offerings using sweepstakes promotions. Operators follow the same established legal principles used by mainstream brands, and, importantly, offer alternative methods of entry (AMOE), which provides customers with an alternative way to enter the promotion without making a purchase or payment.
Online social game operators typically employ a “freemium” business model common in online and app-based games where the base game is free to play, but users may choose to purchase additional enhancements, features or content. Sweepstakes are traditionally intended to promote a bona fide good or service – in this case to promote optional in-game purchases of digital tokens to extend and enhance their experience in free-to-play games.
These promotions operate under the same marketing law as many well-known promotions. To be considered a sweepstakes promotion one of the three elements of a lottery competition – prize, consideration (payment requirement), and chance – must be removed. SGLA’s partners’ promotions always allow free participation and, therefore, remove any element of consideration.
Much like popular match-3 and other online games, online social games offered by SGLA partners are always free-to-play. These games use the freemium model which means players can make in-game purchases to extend or enhance their gameplay.
SGLA partners also implement additional player protections including the ability to set purchase limits and minimum age requirements for casino-themed games and strict age verification processes. Furthermore, our partners ensure best-in-class financial crime prevention, security protocols and data protection measures.
Here’s how SGLA online social games stack up against other popular online games so many Americans play and enjoy.
The Social Gaming Leadership Alliance (SGLA) unites interactive entertainment leaders to advance responsible innovation, player protection and industry integrity while preserving the free-to-play online social games model that has entertained millions of Americans for over a decade. Promoting best-in-class consumer safeguards and transparent operations, we’re committed to ensuring the facts about our industry are clearly communicated, to ensure a thriving, well-understood industry that upholds the highest standards of social gaming excellence.
The Social Gaming Leadership Alliance represents social online game operators and brands, service providers and players who share the same passion for responsible innovation, player protections, and integrity in our growing industry. We advocate for free-to-play online social games, including casino-themed games which leverage sweepstakes promotions. The SGLA does not advocate for operators offering sports products or transacting in cryptocurrency.
Online social games are video games designed around player interaction and social connections and are accessible through web browsers or mobile devices. Games can take many forms including board, match, card, and casino-style games.
“Sweepstakes casinos” or “sweeps casinos” is incorrect and inaccurate terminology. This mischaracterization fails to recognize that sweepstakes promotions are a common marketing strategy used across many U.S. industries. The use of sweepstakes as a promotional element in online social gaming follows this same established marketing tradition.
All SGLA operators must comply with regulatory frameworks and guidelines spanning financial security, data privacy, responsible social gameplay and consumer protection. Social gaming providers also work under the oversight of major payment networks, banking partners and other regulatory authorities. However, the SGLA believes enhanced U.S. regulatory and taxation frameworks will benefit players, communities and the industry.
Leading online social game operators use secure systems to protect player data, have trained staff handling sensitive information and regularly test their security. They must also verify player identity and carefully monitor transactions to prevent fraud and scams with specific limits and safeguards in place to protect players’ money. In addition, payment providers require player payments to be protected by the same security systems and rules that protect credit card purchases at major retailers, and companies must follow proper dispute and refund protocols defined by payment providers and networks.
The SGLA believes that online social gaming platforms should employ dedicated Responsible Social Gameplay teams to proactively monitor for problematic gameplay patterns and act when needed. Leading social game operators also implement multiple player-centered tools, including self-exclusion options, time and purchase limits, and one-click access to responsible gaming information.
Online social games are for mature audiences with data showing that more than 90% of players are aged between 25 and 65.
Some online social games offer sweepstakes promotions, which are used as a marketing tool to promote optional in-game purchases in free-to-play games. These sweepstakes promotions provide real world prizes, operating under the same marketing laws as well-known promotions. Importantly, online social games that offer sweepstakes promotions always provide free participation.
