Modern regulation could unlock $80 million+ in new state revenue
WASHINGTON, DC – The Social Gaming Leadership Alliance (SGLA) today released new economic modeling showing that a thriving online social games with sweepstakes promotions industry contributes more than $230 million annually to New York’s economy.
A veto of legislation (S. 5935-A / A. 6745-A) currently under consideration by Governor Kathy Hochul could not only preserve this economic activity but also unlock more than $80 million in additional new annual tax revenue – all while enhancing consumer protections.
“Governor Hochul faces a clear choice: Embrace smart regulation that protects consumers and generates new revenue or ban a thriving, responsible industry and eliminate hundreds of millions of dollars in economic benefits,” said Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance. “We urge the Governor to veto this bill and support a framework that ensures these games are safe, accessible and beneficial to New Yorkers.”
Key findings from the economic analysis, conducted by respected industry research firm Eilers & Krejcik on behalf of SGLA, shows that in 2024 online social games with sweepstakes promotions contributed:
- $230 million+ in annual economic contribution to New York
- $135 million+ in interchange fees to New York-based card issuing companies
- $15 million+ in payment processing and card network fees to NY-based companies like Mastercard and American Express
- $44 million+ in affiliation deals
- $38 million+ in household earnings through New York-based jobs at companies that work with the industry
Additionally, with modernized laws to regulate and tax the industry, online social games with sweepstakes promotions could bring $80 million-plus in potential new state revenue each year:
- $7-13M from operator registration fees
- $30-68M from a tax on player purchases
- Additional revenue from advertising, brand partnerships and expanded market access
Furthermore, voters are opposed to a ban. A recent nationwide survey found that 84% of Americans support modernizing laws to regulate and tax online social games. Voters overwhelmingly prefer that lawmakers focus on pressing issues like inflation and the high cost of living, health care and immigration, not banning popular free-to-play entertainment.
The SGLA continues to advocate for a regulatory framework that ensures robust age verification, mandates robust data, financial, and fraud protections, codifies transparent operations and provides players with built-in responsible gameplay tools such as spending limits and self-exclusion options and creates new tax revenue for the state.
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 operators offering sports products or transacting in cryptocurrency.
