Talk may not be cheap after all.
After having constructive conversations with state officials about the evolving landscape of digital entertainment, the Social and Promotional Games Association (SPGA) has announced a strategic shift in its approach to a sweepstakes casino bill in New York State.
The group wants to work together with lawmakers to find a happy medium.
The New York State Senate Racing, Gaming, and Wagering Committee recently approved Senate Bill 5935. If it becomes law, this bill will ban online sweepstakes casino games in New York. The SPGA initially denounced the vote, but recent talks now have the group singing a different tune.
“Innovation in digital entertainment often requires a constructive and informed dialogue with lawmakers and policymakers,” an SPGA spokesperson remarked.
Highlighting the successful collaboration experienced in the realm of fantasy sports, the SPGA is optimistic that similar engagement will help develop effective policies around sweepstakes promotions.
SPGA Members Will Help Define Path Forward
Each SPGA member will determine the most appropriate path forward based on individual legal guidance and strategic priorities. This individualized approach underscores a wider industry initiative to foster collaboration and establish clear regulations for sweepstakes-based promotional games.
The organization is encouraged by New York officials' recognition of the need for carefully considered decisions. “We know New York officials recognize the need to get this right,” the spokesperson added, “because any decisions about social sweepstakes could have broader implications—not only for promotions by companies like Starbucks and Marriott, but also for any mobile game where consumers spend money, from Candy Crush and Coin Master to Clash of Clans and Monopoly Go.”
Legal Standing and Market Insights of Sweepstakes Casinos
Pointing to SB5935, the SPGA considers this legislation a confirmation of the legality of these games in New York. The fact that there was a proposal to ban such games implies their current legal status, making further prohibitions unnecessary.
The New York Assembly's companion measure, Assembly Bill 6745 (A6745), has yet to receive a similar vote. That bill is sponsored by State Assemblywoman Carrie Woerner.
Research conducted by Eilers & Krejcik Gaming (EKG) further supports SPGA's stance. Their analysis of Michigan's online gaming market revealed that social and sweepstakes casinos do not compete with traditional real-money casinos and attract players driven by different motivations.
And according to the research, when asked why they play, people who enjoy social sweepstakes games said they do it mostly for entertainment and excitement, rather than to win real money. They also mentioned that connecting with others is a big reason they participate, showing that making money isn't the main reason they play these games.
Distinct Features of Social Sweepstakes Games
Sweepstakes casinos allow players to use a special currency (Gold Coins or Sweepstakes Coins) to win prizes or cash in games that look like casino games.
A notable distinction of social casinos and sweepstakes casino games is their no-purchase-necessary model. Most participants engage in these games without cost, enjoying a relaxed and low-risk form of entertainment. This feature contributes significantly to their widespread popularity.
Commitment to Advocacy and Responsibility
Many online sweepstakes sites are run by companies outside the U.S., and it's unclear if they're legal under U.S. law because there hasn't been a court case about it yet. Some of these companies have stopped offering their services in certain states because they risk being prosecuted.
States like West Virginia, Connecticut, Mississippi, and New Jersey have introduced bills to ban sweepstakes games altogether, making it clear what the law intends to do.
Looking ahead, the SPGA is unwavering in its commitment to advocating for the millions of American adults who enjoy sweepstakes casino games.
The association promises ongoing dedication to responsible operations, transparency, and open dialogue with regulators to ensure the continued success and legality of sweepstakes-based promotional games.
