A national trade association representing companies in the social gaming business is pushing back against new legislation introduced in Minnesota that would outlaw a category of online games the industry says has operated legally in the state for years.

The Social Gaming Leadership Alliance, a Washington based trade group known as SGLA, released a statement Monday (March 16) criticizing Minnesota Senate File 4474 and House File 4410, two proposals that target so-called “Social Plus” titles or online sweepstakes, which the organization describes as free-to-play social games used by hundreds of thousands of Minnesota residents.

SGLA Managing Director Sean Ostrow said the legislation would wipe out a long-standing entertainment option while failing to deal with illegal operators that run websites outside the United States.

“Social Plus games are a popular form of entertainment enjoyed by hundreds of thousands of Minnesotans and have been operating lawfully in the state for over a decade,” Ostrow said in a statement to ReadWrite. 

“SF 4474/HF 4410 would ban these games entirely, punishing law-abiding businesses and the Minnesotans who responsibly enjoy them while doing nothing to address illegal offshore operators and shutting down the potential for the games to generate $20 million or more in state revenues. We urge Minnesota lawmakers to pursue smart regulation rather than prohibition.”

SGLA slams Minnesota and other states for moving against sweepstakes style online games

Lawmakers in Minnesota are considering the bills as part of a national debate about sweepstakes style casino platforms, which operate with virtual currencies and promotional prize systems rather than traditional wagers.

Recent proposals in several states show how quickly regulators are turning their attention to the sector. Coverage by ReadWrite reported that lawmakers in Maine are also weighing legislation that would prohibit online sweepstakes casino games statewide.

In Indiana, the governor recently signed a measure tightening rules tied to sweepstakes promotions, another sign that policymakers are increasingly trying to define how these gaming products should be treated under state law.

SGLA argues Minnesota could take a different route by building a regulatory framework instead of banning the games outright. The organization says it has already started conversations with lawmakers about rules that would let the industry continue operating while adding consumer protections.

According to the alliance, guardrails could include strict age checks, standards protecting player data, and measures aimed at responsible social gameplay.

The group also warns that eliminating legal platforms might drive players toward offshore websites that operate outside U.S. oversight and may lack safeguards such as age verification or clear rules governing customer information.

SGLA says it plans to stay engaged with Minnesota lawmakers, arguing that regulation could protect players, preserve legitimate businesses, and still allow adults to access the free to play games.

Featured image: SGLA