Significant progress has been made in transparency and regulatory participation, as ten leading lottery operators have jointly established the Social and Promotional Gaming Association (SPGA).
This new industry association was announced last Thursday, aiming to clarify legality and establish the legitimacy of social lottery games through better communication with regulators, policymakers, and the public.
SPGA is prepared to take a proactive stance to educate and inform stakeholders about the complexities and legality of the lottery industry. "The establishment of SPGA is an important step towards creating a clear and cohesive voice for the social lottery industry," said Seth Schorr, CEO of FSG Digital Inc., one of the founding members. The mission of the association, as stated on its official website, is to provide a comprehensive understanding of social lottery games, emphasizing their compliance with current legal frameworks.
SPGA has structured itself around two core committees focusing on player protection and regulatory compliance, highlighting its commitment to responsible gambling and adherence to legal standards. This structured approach aims to enhance the industry's status and ensure that the games offered are both entertaining and safe for players.
Notable Absences and Industry Dynamics
While the association has a diverse group of founding members, such as 10 Ten Gaming, Blazesoft, and High 5 Entertainment, it is notable that VGW, the largest operator in the lottery field known for brands like Chumba, Luckyland, and Global Poker, is absent. This absence highlights different approaches to handling regulatory and public relations challenges within the industry.
SPGA's initiative comes at a time when lottery operators are facing increasingly strict scrutiny. The American Gaming Association (AGA) recently expressed concerns about the lottery model, suggesting that clearer regulations are needed to address potential loopholes that could be exploited by unlicensed entities. In seeking to create a more transparent and regulated environment, SPGA's mission becomes even more critical.
Operators within SPGA are responding to this scrutiny, calling for clearer laws to define and regulate their operations, similar to other gaming and gambling platforms. Recent actions by states like Michigan and Delaware, issuing cease notices to major operators like VGW, highlight the urgency of a unified industry voice to effectively participate in the legal framework.
Expansion Amid Challenges
Despite regulatory challenges, the lottery industry continues to grow, with new platforms launching and some transitioning from regulated sports betting to lottery models. This growth indicates a strong interest and market potential for lottery games, and SPGA aims to nurture these games responsibly.
As SPGA navigates these complex regulatory areas, its role in shaping the future landscape of the lottery industry will be crucial. By adhering to legal standards and creating a safe gambling environment, SPGA not only aims to protect player interests but also to solidify its members' operational foundations across different jurisdictions.
