The Social Gaming Leadership Alliance (SGLA) has responded to recent regulatory developments in Illinois and Maryland, warning that proposed restrictions on Social Plus and sweepstakes-style games could weaken consumer safeguards and drive compliant operators out of regulated markets.
In Illinois, the debate follows cease-and-desist orders issued by the Illinois Gaming Board. In Maryland, lawmakers are weighing House Bill 295 and Senate Bill 112, which seek to prohibit sweepstakes platforms that use dual-currency models or award prizes. The SGLA argues that both actions reflect a misunderstanding of how Social Plus games function and how they are already monitored.
Illinois Cease-And-Desist Response
Following the Illinois Gaming Board’s action, SGLA Managing Director Sean Ostrow criticized the inclusion of Social Plus operators alongside illegal offshore gambling sites.
“The fact that responsible Social Plus games operators were mentioned alongside illegal offshore gambling websites indicates a fundamental misunderstanding by the Illinois Gaming Board of the nature of our industry and the very real consumer protections SGLA operator partners implement,” Ostrow said.
“Our operators implement robust age verification, responsible social gaming tools, and comprehensive safeguards on Social Plus games, setting us apart from unregulated, illegal gambling sites.”
Ostrow added that cooperation remains possible, stating, “SGLA would welcome the opportunity to work constructively with Illinois regulators, Attorney General and lawmakers to ensure our industry continues to provide legal, safe entertainment for adults while maintaining the highest standards of consumer protection.”
Maryland Hearings And Legislative Concerns
In Maryland, the SGLA testified before the House Ways and Means Committee on House Bill 295. The Alliance said the proposal would remove access to Social Plus games for more than 120,000 Maryland adults who have used these platforms since 2012.
“If HB 295 passes, the law-abiding operators will exit the state, but illegal operators will stay and prey on unsuspecting Maryland consumers,” Ostrow told lawmakers. “Social Plus operators offer real consumer protections that keep minors from playing, that protect consumer data and finances, and that encourage responsible social gameplay.”
The Alliance outlined protections used across the sector, including age and identity checks, geolocation, secure data practices, and responsible social gameplay tools. Ostrow also noted that the industry falls under oversight from federal agencies such as the FTC, FCC, US Postal Service, and the DOJ Consumer Protection division.
Regulation, Enforcement, And Next Steps
Executives from VGW also testified against HB 295, describing voluntary standards already adopted by operators and warning that a ban would reduce accountability while leaving illegal platforms untouched.
Instead of prohibition, the SGLA urged lawmakers to consider a regulatory framework. During testimony, the group said regulation could generate more than $20 million annually through taxes and registration fees.
The Alliance also pointed to recent cease-and-desist letters sent by the Maryland Lottery and Gaming Control Agency to unlawful operators as evidence that targeted enforcement is already possible.
The Maryland House Ways and Means Committee has not scheduled a vote on HB 295. A similar proposal failed last year, leaving the future of sweepstakes and Social Plus gaming regulation under continued debate.
Source:
“SGLA Responds to Illinois Gaming Board Cease-and-Desist Orders”, sgleadership.org, February 6, 2026
“SGLA Testifies Before Maryland Legislature Regarding HB 295”, sgleadership.org, February 5, 2026
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