The sweepstakes industry is getting organized.
Eleven companies operating sweepstakes or social gaming sites announced Thursday the formation of the Social and Promotional Gaming Association (SPGA), which, according to a press release, is “dedicated to providing stakeholder education and advocating for the responsible operation of social and promotional games, sometimes referred to as social sweepstakes games.”
The announcement of the SPGA comes just two weeks after the American Gaming Association — which represents regulated casinos and online operators — issued a memo encouraging a closer look into the legality of operators employing the sweepstakes model.
That model, as described in a recent feature report on Casino Reports examining a group of players profiting off sweepstakes casinos, relies upon sweepstakes law and utilizes a loophole by which real money is deposited or withdrawn from the site but site-specific currency is used for the casino games or sports wagering.
