New Social/Sweeptakes Trade Group Launches, This Time With VGW Involved

And then there were two prominent advocacy groups for sweepstakes-style gaming.

The Social Gaming Leadership Alliance (SGLA) announced its establishment Tuesday afternoon, and included among its members is VGW — the company behind Chumba Casino, Luckyland Slots, and Global Poker, and the overall largest operator in the space. VGW, notably, is not part of the Social and Promotional Games Association (SPGA), which has until now been the lone trade group issuing statements on behalf of the social/sweeps sites.

Arguably as noteworthy as VGW’s involvement is the announcement that the SGLA’s executive director is a former member of the United States House of Representatives, South Carolina’s Jeff Duncan. Duncan, a Republican, held his congressional seat from 2010-2024.

“Social games industry leaders are already investing heavily in financial security, data privacy, responsible social gameplay, and consumer protections. And they are ready and open to sensible regulation that can benefit hard-working constituents in the states where they operate,” Duncan said in a press release.

“The SGLA’s partners are uniquely positioned to work with lawmakers, stakeholders, and players to support innovation in digital games and ensure millions of Americans have the freedom to enjoy the games they love in a safe environment. I look forward to working with state and industry leadership to do just that.”

Sweeps under the microscope

Sweepstakes gaming has been the subject of much scrutiny in recent months. The sites use a dual-currency system whereby there is always the option to play “social casino” games for play money “gold coins” with no real-world value (Rubystone CEO Jamison Selby estimated at last week’s SBC Summit Americas conference that two-thirds of all players only play these no-cost social games).

There is also an option, however, to play for “sweeps coins,” which can be converted to real money and withdrawn from the sites. Technically, to comply with sweepstakes laws, a customer spending real money purchases gold coins, then receives sweeps coins as a deposit bonus.

VGW, like many other sweeps operators, has received cease-and-desist orders from several states, as the debate over the legality of these sites continues to swirl.

Other partners in the SGLA in addition to VGW include PLAYSTUDIOS, Yellow Social Interactive (the company behind the Pulsz brand), ARB Interactive (Modo Casino), B-Two Operations (McLuck), and payments provider Nuvei.

Said VGW CEO Laurence Escalante in the SGLA’s press release, “VGW has consistently led the way in innovation and player-first practices. Now, we’re excited to establish this Alliance with like-minded partners to take this further, promoting the highest standards of player protection and industry integrity while advocating for sensible regulatory frameworks that reflect the role of online social games as a safe and growing component of the interactive entertainment industry.”

The SGLA spelled out that it advocates strictly for social and sweepstakes casino games, and not for sweepstakes-style sports betting sites.