SGLA Advocates Smart Oversight, Not a Ban, for Indiana’s Sweepstakes Casinos

Indiana’s the latest state to act on the legal status of sweepstakes casino games. While playing sweepstakes casino games isn’t explicitly illegal, there are efforts to ban the business model.

HB 1052, a bill introduced by Rep. Ethan Manning, is one of the bills which aim to ban sweepstakes casinos in the state. The House completed its first hearing on January 6th, and it’s waiting for a vote on whether it will advance and ultimately classify sweepstakes games as illegal.

As support for the ban pours in, a few dissenting voices of reason for the broader sweepstakes casinos have emerged. The Social Gaming Leadership Alliance (SGLA), an industry lobby group, has stepped forward to challenge Rep. Manning’s proposal. 

Social games, they say, area legal form of entertainment, and banning these wouldn’t help. Instead, they’re calling for “responsible regulation, rather than a ban”, which SGLA calls the “pragmatic pathway forward.”

“Social Plus” Games are Safe, Says Sean Ostrow

The Social Gaming Leadership Alliance (SGLA) was one of the stakeholders invited during HB 1052’s first hearing. In a statement, the lobby group urged lawmakers to reconsider the plans to ban sweepstakes casino games. The group argued that these games are legal, fun, and have been operating responsibly since 2012.

Sean Ostrow, Managing Director of the SGLA, argued that HB 1052 would “criminalize law-abiding businesses” and would do nothing in stopping illegal operators from exploiting players.

Ostrow pitches for a regulated environment, instead of an outright ban on sweepstakes casinos.

Other Stakeholders, Like VGW and ARB Interactive, Join Calls for “Regulations, Not Ban”

SGLA was joined by other stakeholders, such as VGW and ARB Interactive, in arguing on behalf of the operators. 

In the same hearing, Dan Marks of ARB Interactive called HB 1052 an “overly broad attempt to protect consumers from bad actors that will continue to prey on consumers whether the bill is passed or not.” If explains that if the ban happens, legit sites like ARB sites will close, pushing players to offshore sites that operate illegally.

Lloyd Melnick, Chief Growth Officer, also added his thoughts, calling for sensible regulation that protects players. Melnick explains that the sweepstakes casino industry has been defined by constant innovation, offering players a “broad range of fun and safe entertainment.

A Regulatory Framework that Works for All

For SGLA, regulation with a sensitive regulatory framework delivers the best results. Under the SGLA’s proposal, an updated framework shall give Indiana up to $20 million in annual tax revenues while enforcing checks and responsible gambling.

“Responsible regulation, rather than a ban”, they say, is the best move forward for a growing industry. The lobby group has committed that they’re ready work with the state’s legislators, not just to support an industry, but also protect players while generating revenues.

REFERENCES:

• HB 1052