A Fierce Response to Bans
The Social Gaming Leadership Alliance (SGLA), a coalition of sweepstakes casino operators led by Virtual Gaming Worlds (VGW), sharply criticized new state laws banning their platforms.
Louisiana’s SB 181 and Connecticut’s SB 1235, passed unanimously in June, outlawed online sweepstakes games, prompting SGLA’s executive director, former Congressman Jeff Duncan, to call the moves “hastily passed based on incomplete information.”
The group, formed in May 2025 with members like PLAYSTUDIOS, Yellow Social Interactive, and Nuvei, argues these bans stem from “deliberate misinformation” by competitors in real-money gaming, aiming to squash legal rivals.
SGLA claims lawmakers in Louisiana and Connecticut were swayed by a “campaign of deliberate misinformation” from parties with “clear vested interests,” like licensed casinos and sportsbooks. Duncan stressed that sweepstakes operators had no “meaningful opportunity to engage” in the legislative process, while critics dominated the conversation.
“Competitors were given ample voice in a concerted effort that prevented a commonsense solution,” he said. The group insists its platforms, like Chumba Casino and McLuck, operate legally under sweepstakes laws, similar to promotions by mainstream brands.
SGLA refutes claims that players routinely lose money without recourse, calling such accusations “categorically false.” The bans, they argue, cut off residents from “popular, free-to-play online games enjoyed by millions nationwide.”
Black Market Wins, Players Lose
The SGLA labels Connecticut’s ban a “win for the black market,” warning it stifles “innovation, competition, and free choice” while offering no benefits to the state.
In Louisiana, Duncan said residents will lose access to safe, regulated entertainment, leaving “black market operators laughing all the way to the bank.” Unlike licensed casinos, sweepstakes platforms offer free-to-play models with no purchase required, using dual currencies like Gold Coins for fun and Sweeps Coins for prize redemptions.
SGLA argues these games pose less financial risk than real-money gambling, yet face harsher scrutiny.
While SGLA “supports oversight,” it rejects laws that “ignore player protections and competition.” Duncan emphasized the industry’s openness to “sensible regulation” that benefits states and players. The group’s four principles, free-to-play access, responsible gaming, player protection, and age restrictions, guide its advocacy.
Members implement age verification, data security, and tools like spending limits, aiming to set a standard for responsible play. SGLA hopes to work with lawmakers in Louisiana, Connecticut, and beyond to “right this wrong” and craft a “better approach” that preserves free entertainment with proper oversight. “We’re ready to collaborate,” Duncan said, urging states to regulate rather than ban.
Broader State Crackdowns
The sweepstakes industry faces mounting pressure. Montana pioneered an outright ban in 2025. Last week, New York’s Attorney General Letitia James forced 26 platforms, including SGLA members’ brands, to halt Sweeps Coin sales.
States like Idaho, Michigan, Nevada, and Washington issued cease-and-desist orders, with VGW shuttering Global Poker in Nevada earlier this year.
New Jersey’s Senate Bill 4282, advanced in June, targets sweepstakes, while Maryland and Arkansas consider similar measures.
Launched to counter “external attacks,” SGLA unites operators like B-Two Operations (McLuck) and ARB Interactive (Modo Casino) to educate lawmakers and the public.
Unlike the Social and Promotional Games Association (SPGA), formed in September 2024 with members like High 5 and Fliff, SGLA focuses solely on sweepstakes, not sports or crypto products.
The SPGA, also vocal against bans, called Louisiana’s law a “step backward,” aligning with SGLA’s view. Both groups share goals of player safety and innovation, but differ in membership and strategy. SGLA’s VGW, a market leader since 2016, abandoned its FendOff sports betting venture to double down on sweepstakes.
