As Virginia continues making significant strides toward legalizing iGaming, the sweepstakes casino industry, or what the Social Gaming Leadership Alliance (SGLA) refers to as Social Plus games, could be getting banned. Before that happens, the organization has proposed a different economic model highlighting how the industry could generate more than $30 million in new annual revenue for the Commonwealth of Virginia.
The SGLA release notes that the report, conducted by industry-leading research firm Eilers & Krejcik, illustrates how developing a regulatory framework tailored to this distinct digital entertainment category would check several boxes, including:
The SGLA release highlighted that approximately 340,000 Virginia adults enjoy Social Plus platforms that feature interactive board, card, and casino-style games. The free-to-play platforms have been available to Virginians since 2012.
It also references how a nationwide survey found that 84% of Americans support modernizing laws to tax and regulate online social games. Voters overwhelmingly indicate that lawmakers should prioritize pressing economic challenges like inflation, the high cost of living, health care, and immigration rather than banning popular, free-to-play entertainment options.
Sean Ostrow, managing director of the SGLA, said the Virginia legislature faces an important choice.
“Lawmakers can effectively ban an established Social Plus industry that has operated in Virginia since 2012, or they can implement a thoughtful regulatory framework that protects consumers and generates more than $30 million in new annual revenue for the Commonwealth,” Ostrow said.
Virginia is one of the U.S. states that is making serious strides regarding iGaming legislation. The Virginia Senate recently advanced SB 118 and HB 161 to legalize online casinos in the Old Dominion State.
If the legislation makes it to the finish line, Virginia online casino operators would partner with one of the state’s land-based casino companies. Rules and regulations will need to be finalized prior to the IGaming industry launch.
While things are looking promising for Virginia real money online casinos, the picture is getting cloudy for Social Plus platforms. Virginia’s online casino bill would effectively ban sweepstakes casinos unless the operator obtains a license under the new online casino framework.
The SGLA raised the point that iGaming is wholly incompatible with the Social Plus industry and the economic realities of free-to-play social games. As a result, the SGLA is urging Virginia lawmakers to “give Social Plus games the same study and deliberation that they have given to daily fantasy sports, sports betting, and now iGaming.”
