The Social Gaming Leadership Alliance (SGLA) has come out against another bill this week, following on from their statement against the social casino bill in California. This time, the group is opposing a Massachusetts bill that it claims will bring “criminal liability” against businesses in the state.
Massachusetts officials are currently proposing to also ban online social games that offer sweepstakes. As the SGLA represents platforms that are currently operating sweepstakes casinos and similar operations, they have a vested interest in ensuring that Bill 4431 doesn’t pass.
The bill hasn’t had much movement, with only one entry listed on the Massachusetts House site. It is currently “Referred to the committee on Economic Development and Emerging Technologies”.
SGLA argues against Massachusetts bill
However, the SGLA argues that while the bill might target online platforms, the wording “broadly targets” a whole host of other online games. One point that the SGLA makes is that the bill “fails to define key terms”. Reading the bill, it defines “online sweepstakes” as the following per this bill:
“”Online sweepstakes game”, any game, contest or promotion, in which a prize is awarded based on chance, that is available on the internet and accessible on a mobile phone, computer terminal or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, and table games, lottery games and sports wagering.”
Based on this, it is clearly targeting sweepstakes casinos, which have skirted around US state regulations for quite some time. They offer dual currency games, with the often labeled “gold coins” used for free games, while the bundled “sweep coins” can be used for cash prizes. These are sold in bundles, often without any limitations or safety measures in place.
SGLA director speaks out on sweepstakes bill
One aspect that the SGLA argues could happen is that businesses that happen to work with them, like payment processors, could be liable. However, the bill is still in the early stages and could be radically changed over the coming weeks and months.
Speaking in the press release, Jeff Duncan, Executive Director of SGLA and former Congressman, said:
“Massachusetts has long been a hub of innovation, technology, and economic leadership, but this proposal sends the wrong message.
“Voters do not want bans. They want smart rules that protect consumers, preserve choice, and strengthen the economy.
“A blanket prohibition on social games would strip away lawful entertainment, criminalize legitimate businesses, and undermine an industry that, if rules are modernized to regulate and tax the industry, could add to the state’s annual revenue.”
We recently reported that illegal gambling takes up a third of the US wagering, and that 74% of wagers are spent on offshore platforms.
