Well-known operators of social games have gathered together and formed a gaming alliance in response to the ongoing scrutiny into sweepstakes gaming operations. The group, called the Social Gaming Leadership Alliance, is set to push for more friendly rules and regulations in the social gaming industry. It is led by former congressman Jeff Duncan, and he is joined by major players like VGW (Virtual Gaming Worlds), Yellow Social Interactive, B-Two Operations, ARB Interactive, and PLAYSTUDIOS.

A collective of prominent social gaming operators has come together to form the Social Gaming Leadership Alliance, a newly established advocacy group aimed at addressing mounting regulatory challenges and shaping a sustainable future for the industry. The coalition will be led by former US Congressman Jeff Duncan, and its founding members include Virtual Gaming Worlds (VGW), Yellow Social Interactive, PLAYSTUDIOS, B-Two Operations, and ARB Interactive, along with payment provider Nuvei.

The SGLA marks a significant step for the social gaming industry as it seeks to better educate lawmakers, regulators, and the public about the nature of its platforms and practices.

Promoting standards and clarifying misconceptions

Laurence Escalante, Chief Executive Officer of VGW, emphasized the importance of unifying under one voice to promote transparency and industry best practices. “Online social gaming is a well-established, popular form of entertainment in North America, where we’ve operated for more than a decade,” said Escalante.

“As a pioneer and market leader, we recognize the rising interest in our sector and our responsibility to both ensure the facts about our games, operations, and standards are understood and advocate for what we believe the appropriate industry frameworks should look like,” continued Escalante.

The coalition aims to develop and promote clear, consistent industry standards to help lawmakers and regulators differentiate social gaming from other forms of online gambling.

Core principles guide the SGLA's mission

The SGLA will be grounded in four core principles:

  1. Free-to-play options - Ensuring players can enjoy games without spending money.
  2. Responsible Gaming - Promoting player well-being and sustainable gameplay practices.
  3. Player and platform protection - Upholding data privacy and ensuring secure, fair gameplay environments.
  4. Age Restrictions - Enforcing strict age verification processes to keep minors from accessing gaming content.

By aligning on these values, the alliance hopes to present a united front when advocating for balanced regulations and preserving innovation in the sector.

Response to mounting legal pressure

The creation of the SGLA comes at a pivotal time for the social gaming industry, which has increasingly come under scrutiny from state regulators. VGW and several other sweepstakes operators have recently faced cease and desist orders in states such as Connecticut, Michigan, Idaho, Montana, Washington, and Nevada.

In one high-profile development, VGW made the decision earlier this year to shut down its Global Poker brand in Nevada, citing increased regulatory pressure. Gold Coin sales were discontinued in January, and customer accounts were fully closed by mid-April. This climate of uncertainty has spurred leading operators to organize and present a coordinated effort to protect the viability of their businesses and the enjoyment of their users.

Competing visions within the industry

The SGLA’s formation also highlights a growing divergence within the social gaming sector. Another industry group, the Social and Promotional Gaming Association, was launched in September 2024 with a focus on opposing legislative efforts that seek to curtail sweepstakes and other social gaming models.

While both groups aim to defend the social gaming space, their approaches and priorities appear to differ. The emergence of multiple advocacy organizations suggests an evolving and increasingly complex regulatory environment, as operators navigate differing interpretations of how social gaming should be governed.

The SGLA plans to begin an outreach campaign targeting lawmakers, regulatory agencies, the media, and the general public, advocating for informed and balanced policy decisions that allow the industry to flourish while protecting consumers. With seasoned leadership and backing from influential stakeholders, the alliance hopes to shape the narrative around social gaming and prevent overly restrictive laws that could stifle innovation.