WASHINGTON DC – The Social Gaming Leadership Alliance (SGLA) today responded to the New York Attorney General’s enforcement action, which mischaracterizes social online games that utilize sweepstakes promotions as illegal gambling operations.
The SGLA represents industry-leading companies that provide engaging, free-to-play online entertainment to millions of American adults through sweepstakes promotional models widely used by respected consumer brands nationwide. Our partners utilize established sweepstakes promotional frameworks which are distinct from gambling because they are designed to promote a bona fide service (the play-for-fun social games) and always provide genuinely free participation methods through Alternative Methods of Entry (AMOE), including daily rewards and on-request (such as mail-in) options.
Contrary to claims in the Attorney General’s statement, purchasable digital tokens used in SGLA partner platforms cannot be redeemed for anything of value, transferred, or traded. These tokens are used solely to enhance gameplay and cannot be converted to cash. Any prizes awarded through legitimate sweepstakes promotions are separate from and not purchased with these game tokens.
SGLA partners maintain comprehensive consumer protection standards, including:
- Strict age verification using robust identity and geolocation technology to prevent minor access.
- Comprehensive security protocols including anti-money laundering (AML) procedures and ‘Know Your Customer’ (KYC) frameworks.
- Responsible gameplay tools including spending limits, self-exclusion options, and resources for players.
- Adherence to comprehensive regulatory frameworks required by third-party partners including major financial and technology partners.
“While we disagree with the characterization of our members’ lawful sweepstakes operations in today’s enforcement action, we look forward to working with legislators and regulators to develop a comprehensive regulatory structure that protects consumers while preserving innovation,” said SGLA Executive Director Jeff Duncan. “We believe there is an opportunity to create a framework that provides appropriate oversight, mandates robust consumer safeguards, and recognizes the legitimate use of sweepstakes promotions.”
“The SGLA remains committed to collaborative engagement with New York officials to develop balanced regulations that serve the interests of consumers, the state, and the digital entertainment industry. We believe productive dialogue can lead to solutions that enhance consumer protection while supporting innovation and economic growth.”
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.
