SGLA urges Indiana lawmakers to regulate social games instead of banning them

The Social Gaming Leadership Alliance (SGLA) urged Indiana lawmakers to regulate rather than ban so-called Social Plus games, warning that a proposed prohibition could drive players to illegal offshore operators while eliminating potential tax revenue for the state.

The appeal followed testimony submitted on House Bill 1052, which seeks to prohibit certain online sweepstakes-style social games. SGLA described Social Plus games as a lawful category of free-to-play and freemium online social games with promotional sweepstakes features that have operated in Indiana for more than a decade.

“Social Plus games are a safe, legal form of entertainment that has been operating responsibly in Indiana since 2012,” said Sean Ostrow, Managing Director of the SGLA. "HB 1052, as currently written, would criminalize law-abiding businesses while doing little to stop illegal operators who exploit consumers. The hundreds of thousands of Hoosiers who enjoy these games deserve a regulated environment that protects them and preserves choice."

According to SGLA, Social Plus platforms are restricted to players aged 21 and over and incorporate age and identity verification, geolocation controls, responsible gameplay tools, and data protection safeguards. The group emphasised that the games are free to play, with optional in-game purchases that are not required for participation.

At the hearing, Dan Marks, Chief Financial Officer of ARB Interactive, said: "HB 1052 is an overly broad attempt to protect consumers from bad actors that will continue to prey on consumers whether the bill is passed or not. If it does pass, consumers will be in more danger as legitimate companies like ARB cease operations and our players drift to offshore sites that operate illegally."

Support for regulation was also voiced by Lloyd Melnick, Chief Growth Officer at VGW. "Social Plus games benefit players by giving them a broad range of fun, safe entertainment," Melnick said. He added that the bill, in its current form, would signal that Indiana was not open to digital innovation and competition.

SGLA has proposed an alternative regulatory framework that it estimates could generate more than $20 million annually for Indiana through a combination of player purchase taxes and operator registration fees. The group said the framework would include strict requirements on age verification, data privacy, and responsible gameplay protections.

“Responsible regulation, rather than a ban, is the pragmatic pathway forward,” Ostrow added. "We are ready to work with Indiana legislators to protect consumers, support local businesses, and provide meaningful tax revenue while keeping these popular games accessible to adults."