The Social and Promotional Games Association (SPGA) has pushed back against Pennsylvania’s decision to send cease-and-desist letters to 18 sweepstakes operators, calling the move inconsistent with both legal norms and industry practices.
On Thursday, the SPGA released a public statement criticizing Pennsylvania’s enforcement effort, urging regulators to rethink their stance. “The SPGA is concerned by Pennsylvania’s recent cease-and-desist orders against 18 sweepstakes operators. This broad regulatory action is out of step with legal precedent and industry standards,” the organization stated.
The group pointed to recent developments in other states to highlight what it sees as growing support for the sweepstakes model. Legislatures in Arkansas, Mississippi, and Maryland recently rejected bills that would have placed restrictions or bans on sweepstakes-style gaming, which the SPGA cited as a sign that public and legislative sentiment is shifting in its favor.
Economic and Business Impact Raised
The SPGA also warned about the broader consequences of banning sweepstakes models. “Banning social sweepstakes threatens more than just entertainment—it puts at risk a growing digital sector that supports innovation, creates jobs, generates tax revenue and helps both large and small businesses reach and retain customers,” the group said.
In a call for a more balanced approach, the Association urged Pennsylvania to engage with the industry rather than act unilaterally. “This kind of heavy-handed approach sends the wrong signal to companies investing in Pennsylvania’s economy and digital future. We urge Pennsylvania regulators to pursue open, fact-based dialogue with industry stakeholders. A collaborative approach will better protect consumers, support businesses and foster innovation in the digital economy.”
Sweepstakes Framed as Industry Norm
The SPGA views sweepstakes games as legitimate promotional tools used by sectors like retail and hospitality. It argued that questioning their legality could create uncertainty around other common marketing strategies, and said the discussion touches on broader issues of consumer rights and protection in digital markets.
The group also noted it has been engaging in dialogue with other states. Most recently, the SPGA said it adjusted its approach in New York following constructive talks with local officials on March 27.
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