SGLA warns of revenue loss after Social Plus game restrictions in New York

New York’s ban on Social Plus games removes offerings that contributed more than $230 million to the state’s economy in 2024 and could have generated at least $80 million in yearly state revenue under a regulated model, according to the Social Gaming Leadership Alliance (SGLA).

Governor Kathy Hochul signed S. 5935-A / A. 6745-A, a measure prohibiting Social Plus games that have been available to New York players for a decade. SGLA said the law restricts sweepstakes-based promotional features used by operators without providing another business model that allows continued access for consumers.

The group stated that the legislation did not include industry consultation and affects activities it considers lawful sweepstakes promotions.

SGLA said Social Plus games have operated as free-to-play digital entertainment products enjoyed by New Yorkers and supported business activity tied to the state’s technology and innovation sectors. The organization said the ban cuts off economic contributions for operators and partners serving the market.

"Players, operators, and voters all made their position clear: they didn't want a ban on this popular, safe form of entertainment," said Jeff Duncan, Executive Director of SGLA. "Governor Hochul had the opportunity to protect consumer choice and New York's economic interests. Instead, she chose a short-sighted path, closing the door on choice, innovation, and hundreds of millions in economic activity."

SGLA pointed to nationwide polling suggesting 84% of Americans support updating laws to regulate and tax Social Plus games. The group said voters want officials to focus on broader economic concerns including inflation and the high cost of living, as well as health care and immigration.

The organization said it remains focused on pursuing policies that allow consumer access and oversight of Social Plus offerings while maintaining economic participation for companies operating in the sector.

SGLA works with social gaming operators that provide free-to-play entertainment and digital marketing using sweepstakes promotions. The group advocates for approaches it says protect consumers, platforms and communities while supporting responsible gameplay.