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SGLA testifies for social game regulation in Maine

Maine Senate Paper 825 would ban social plus games across the state, leading SGLA to request a regulatory framework for the gaming type rather than prohibit the offering entirely.

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SGLA testifies for social game regulation in Maine
Key Points
SGLA Managing Director Sean Ostrow stated the SP 825’s approval would be ‘sadly predictable’ and allow illegal operators to remain in the state
The organization believes its regulatory framework for social plus games could generate over $3m in annual revenue for Maine

The Social Gaming Leadership Alliance (SGLA) has submitted testimony to Maine lawmakers following the introduction of Senate Paper 825, which seeks to prohibit social plus game offerings across the state. 

The social gaming organization has instead proposed a regulatory framework that the SGLA believes could generate more than $3m for Maine through player purchase taxes and operator registration fees. 

“If the language of SP 825 is passed, the outcome will be sadly predictable – the law-abiding operators will exit the state, but illegal operators will stay and prey on unsuspecting Maine consumers,” SGLA Managing Director Sean Ostrow said. 

“Social Plus operators offer real consumer protections that keep minors from playing, that protect consumer data and finances and that encourage responsible social gameplay.” 

According to the SGLA, partner operators of the Alliance work to ensure all social plus game offerings include age and identity verification, responsible social gameplay tools, geolocation and the “secure handling” of consumer data.

Ostrow continued: “This proposal would ensure that all operators enforce strict age-verification restrictions to keep people under the age of 21 from participating, protect consumer data and privacy, ensure prizes can be redeemed promptly, provide clear and truthful advertising to adults only and provide resources to ensure that customers are interacting with Social Plus games responsibly.”

On January 6, SGLA also submitted testimony regarding Indiana House Bill 1052, describing the legislation as an "overly broad attempt" to safeguard residents from "bad actors" in social plus gaming.

House Bill 1052 was originally brought forth by Indiana Representative Ethan Manning on December 5 and looks to prohibit sweepstakes casinos utilizing dual-currency payment systems and simulating casino-style games, lottery games, bingo and sports betting.

The SGLA would go on to propose a regulatory framework for social plus games in Indiana with an estimated yearly revenue of over $20m.

Good to know

In the wake of New York's ban on sweepstakes and social plus games, SGLA responded by labelling the decision 'rushed' on December 8, citing the loss of significant potential financial contributions

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