Indiana is the latest state to step into the Social Gaming Leadership Alliance (SGLA) spotlight as the organization is urging state lawmakers to regulate, not ban social plus games. It’s a reaction to state representative Ethan Manning introducing legislation that would prohibit sweepstakes casinos.
The SGLA has taken similar stances with several other states, including New York and California, both of which have outlawed social casinos. Regarding Indiana, SGLA leaders have proposed a regulatory framework that would generate upwards of $20 million per year in state revenue via player purchase taxes and operator registration fees. The proposal also mentions the ideas of enforcing strict age verification, data privacy, and responsible gameplay protections.
While Indiana lawmakers and the SGLA have opposing viewpoints regarding the Social Plus industry, the latter is seeking common ground that would allow Hoosier State residents to continue legally using the platforms.
Sean Ostrow, Managing Director of the SGLA, said responsible regulation, rather than a ban, is the pragmatic pathway forward.
“We are ready to work with Indiana legislators to protect consumers, support local businesses, and provide meaningful tax revenue while keeping these popular games accessible to adults,” Ostrow said.
The SGLA was established by market leader VGW, the parent company of Chumba Casino, LuckyLand Slots, LuckyLand Casino, and Global Poker brands. The organization aims to unite interactive entertainment leaders, service providers, and players to advance free, safe, and engaging Social Plus games.
It’s a process that’s becoming more challenging as U.S. jurisdictions have either passed legislation to ban Social Plus casinos or are discussing the possibility. California’s ban on dual-currency sweepstakes casinos went into effect on January 1. New Jersey, Montana, New York, and Connecticut all passed similar bills last year.
Each time around, the SGLA offers possible alternative solutions, but the list of banned states keeps growing.
When New York Gov. Kathy Hochul signed Senate Bill 5935 into law, the SGLA expressed deep disappointment regarding dual-currency casinos being banned from operating in the Empire State. The response included the wording of taking the “short-sighted path.”
Prior to Gov. Gavin Newsom signing AB831 into law, the SGLA shared the results of its nationwide poll showing that 85% of Californians agreed that the state should modernize and update laws. The idea of regulating and taxing online social gaming had strong support from poll participants.
In Indiana, if House Bill 1052 does become law, dual-currency gaming platforms that resemble traditional gaming would be penalized. Operators could face a $100,000 fine per violation.
The uncertainty surrounding the sweepstakes industry has led smaller operators like Vegas Coins, Bitsler.io, Vivaro.us, and Starlight Casino to shut down.
Ostrow highlighted how Social Plus games have been “operating responsibly” in Indiana since 2012.
“HB 1052, as currently written, would criminalize law-abiding businesses while doing little to stop illegal operators who exploit consumers,” Ostrow said. “The hundreds of thousands of Hoosiers who enjoy these games deserve a regulated environment that protects them and preserves choice.”
