The recent prohibition on Social Plus games in New York eliminates a source of over $230 million in economic contributions to the state in 2024, a move that could have alternatively brought in an additional $80 million annually in state revenue if regulated, claims the Social Gaming Leadership Alliance (SGLA).
Governor Kathy Hochul has enacted S. 5935-A / A. 6745-A, a law that bans Social Plus games which have been accessible to players in New York for the past decade. According to SGLA, this legislation hinders the sweepstakes-based promotional features leveraged by operators while failing to present an alternative business model for consumers to continue enjoying these services.
The organization emphasized that the new law lacked industry input and undermines activities that they consider legitimate sweepstakes promotions.
SGLA expressed that Social Plus games have been integral to the free-to-play digital entertainment market in New York and have bolstered business activities linked to the state’s tech and innovation sectors. The alliance noted that the ban disrupts the economic contributions of operators and partners engaging with the local market.
“Players, operators, and the electorate have voiced their disapproval: they do not support a ban on this widely accepted, safe entertainment option,” stated Jeff Duncan, the Executive Director of SGLA. “Governor Hochul had a chance to safeguard consumer choice and bolster New York’s economic strength. Instead, she has taken a regressive approach, closing the door on innovation and hundreds of millions in potential economic growth.”
SGLA pointed out that national surveys indicated that 84% of Americans favor modernizing laws to regulate and tax Social Plus games. The organization highlighted that voters are urging officials to address broader economic issues such as inflation, the escalating cost of living, and topics related to healthcare and immigration.
The group pledged to continue advocating for policies that ensure consumer access and oversight regarding Social Plus offerings, while simultaneously encouraging economic participation from companies within the sector.
SGLA collaborates with social gaming operators that deliver free-to-play experiences and digital marketing through sweepstakes promotions. The alliance promotes methods that it argues safeguard consumers, platforms, and communities, while encouraging responsible gameplay.
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