SPGA ‘concerned’ by cease-and-desist orders from Pennsylvania
The SPGA released an official statement in response to letters being sent to 18 sweepstakes operators, calling the decision ‘out of step’ within legal precedent and industry standards.
Key Points
- The Association recently commented on legislative victories seen in Maryland, Arkansas and Mississippi, where bills that would’ve prohibited the operation of sweepstakes failed to pass
- Calling for a “collaborative approach” to sweepstakes discussions within Pennsylvania, the SPGA urged regulators to pursue “open, fact-based dialogue” with industry stakeholders
The Social and Promotional Games Association (SPGA) released an official statement on April 10 in response to the state of Pennsylvania sending cease-and-desist orders to 18 different sweepstakes operators.
“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 SPGA said.
“Three state legislatures have recently rejected similar proposals, reinforcing what Pennsylvania’s approach may overlook: when properly structured, promotional sweepstakes are legal, safe and widely enjoyed by American adults.”
The Association recently celebrated legislative victories in Arkansas, Mississippi and Maryland, where bills that would have eventually prohibited the operation of sweepstakes casinos failed to pass.
“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 SPGA continued.
Good to know: The SPGA decided to adjust its New York approach regarding sweepstakes games after recent constructive conversations with state officials on March 27
“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.”
The SPGA described sweepstakes as a “promotional tool” that has been used across various industries, including retail and hospitality, and believes challenging its legality “raises broader questions about the future of consumer protections.”
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