A new trade association, the Social & Promotional Games Association (SPGA), has formed to protect and regulate the growing social gaming industry amid increasing scrutiny and criticism.

Social gaming platforms offer free-to-play casino-style games, with some incorporating sweepstakes elements that can award real prizes. The industry has generated over $40 billion in revenue over the past decade through the sale of virtual tokens and credits.

The SPGA consists of 11 prominent social gaming companies, including 10 Ten Gaming, Blazesoft, Fliff, and High 5 Entertainment. Its primary goals are:

• Educating lawmakers and the public about social gaming
• Implementing age verification (18+)
• Establishing consumer protection standards
• Promoting responsible gaming practices
• Ensuring fair play and transparent advertising

While proponents argue these platforms provide safe entertainment, critics claim they enable illegal gambling. Several states, including Idaho, Kentucky, and Nevada, have issued cease-and-desist orders to social gaming operators.

The SPGA maintains that their business model is legitimate, comparing it to promotional sweepstakes run by major retailers like Walmart and Starbucks. They report that over two-thirds of their users never spend money on the platforms.

However, concerns persist following reports of excessive spending, including one case where a player lost nearly $100,000. The SPGA claims such cases are rare and emphasizes their commitment to responsible gaming through strict verification processes and consumer protections.

The association's formation marks a significant step toward self-regulation in an industry facing increased legislative and regulatory challenges across multiple states.

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