A trade group for the sweepstakes casino industry is asking lawmakers in Pennsylvania and Virginia to legalize and regulate sweepstakes-style casino games instead of banning them. The group, called the Social Gaming Leadership Alliance (SGLA), says these platforms are already popular in both states and that regulation could turn today’s activity into tax revenue and clearer consumer protections.
The push is backed by new economic studies that estimate how much money players spent on sweepstakes casinos in 2025 and how much each state could collect if it created a legal framework. Supporters say this is a practical way to control a market that already exists. Critics argue sweepstakes casinos still look too similar to gambling and should be restricted.
What SGLA Is Asking Lawmakers to Do
SGLA’s main message is “regulate, don’t ban.” The group says sweepstakes casinos should be treated as a distinct category of digital gaming that can be licensed, audited, and taxed.
In its latest effort, SGLA released two state-specific reports prepared by Eilers & Krejcik Gaming (EKG). The reports argue that a formal system could include registration fees, a tax on player purchases, and clear rules for things like age checks and location verification.
SGLA also uses the term “Social Plus” to describe sweepstakes casino-style platforms. The group says these products operate differently than traditional online casinos because they use promotional-style currency systems. Still, SGLA’s proposal would place them under state oversight, with licensing standards and consumer protection requirements.
Industry leaders aligned with the sweepstakes model say state laws have not kept up with modern digital platforms. They argue that older sweepstakes rules were written for mail-in promotions, not online games with digital tokens and app-based purchases.
Why Pennsylvania and Virginia Are the Next Targets
SGLA says Pennsylvania and Virginia are ideal test cases because sweepstakes casinos are already widely used there. The EKG research estimates that Pennsylvania players made about $446 million in sweepstakes casino purchases in 2025, while Virginia players made about $423 million in 2025.
The reports also estimate what regulation could mean for state budgets. Under a system that combines fees and taxes, the studies suggest Pennsylvania could bring in over $40 million per year, while Virginia could bring in over $30 million per year.
Pennsylvania is a unique case because it already taxes certain digital goods. The study argues that simply applying existing sales tax rules to sweepstakes purchases could produce a large share of the projected revenue, even before adding registration fees.
Virginia’s pitch focuses more on giving regulators clearer authority to oversee operators, verify compliance, and enforce consumer protection standards. SGLA’s argument is that a “known and regulated” market is safer than pushing players to less transparent offshore sites.
The Big Argument: Do Sweepstakes Casinos Hurt Regulated iGaming?
One of the biggest claims from opponents is that sweepstakes casinos “cannibalize” revenue from regulated online casinos. SGLA’s studies push back, saying the risk is low.
To support that point, the EKG analysis points to Michigan. Many sweepstakes-style platforms left Michigan in late 2023. The report argues that if sweepstakes casinos were truly draining money from regulated iGaming, Michigan’s regulated online casino market should have grown faster after sweepstakes sites left. The study says the data did not show that kind of boost.
This debate matters in both Pennsylvania and Virginia, where legal gambling is already a major business. In Virginia, lawmakers have also been debating online casino legalization bills that would restrict sweepstakes-style games unless they are operated by licensed providers. That makes Virginia a key battleground for SGLA’s “license us” strategy.
For now, SGLA is not announcing a single model law. Instead, it is trying to change the conversation: from “ban sweepstakes casinos” to “set rules, collect taxes, and enforce safeguards.”