The “Social Plus” Strategy
The SGLA isn’t just asking to stay in business; they are proposing a new category called “social plus” gaming. This framework would treat sweepstakes platforms similarly to other digital gaming sectors by requiring:
- Official Registration: Platforms would need to be documented with the state.
- Clear Taxation: A structured tax system to ensure the state gets a cut of the action.
- Defined Rules: Modernizing laws that were written long before app-based gaming existed.
The Financial Incentive
To grab the attention of lawmakers, the industry released studies by Eilers & Krejcik Gaming highlighting the potential “lost” revenue. The numbers are substantial:
| State | 2025 Estimated Player Spend | Potential Annual Tax Revenue |
| Pennsylvania | ~$446 million | Over $40 million |
| Virginia | ~$423 million | Over $30 million |
The industry’s core argument is that this money is already being spent; the state simply isn’t seeing a dime of it yet.
Challenging the “Cannibalization” Theory
A common criticism is that sweepstakes sites steal revenue from licensed online casinos. However, the SGLA points to Michigan as a counter-example. After sweepstakes platforms exited that state, licensed online casinos didn’t see the massive growth spike many expected, suggesting the two may actually serve different audiences.
Modernizing Outdated Laws
The SGLA also argues that current sweepstakes laws are simply stuck in the past. Most were written long before mobile apps, digital currencies, or virtual prize systems existed. By establishing a modern “social plus” category, states could finally address how these new technologies actually work.
What’s Next?
This is an uphill battle. While the SGLA is pitching legalization, many other states are still moving toward total bans. Pennsylvania and Virginia were chosen specifically because they have large, established gaming markets where the potential revenue numbers are hard for legislators to ignore.