Fresh research backed by the Social Gaming Leadership Alliance argues that Social Plus gaming has quietly become a sizable business in Virginia and Pennsylvania, even as officials in both states step up scrutiny of sweepstakes-style casinos.
PENNSYLVANIAPress release: t.co/WWWNjvyU5TE&K report: t.co/u46MSVHUH2VIRGINIA:Press release: t.co/YcosHDUruiE&K report: t.co/QHZIuzx4vh pic.twitter.com/nWBYLMSyei
— Daniel Wallach (@WALLACHLEGAL) February 23, 2026The reports, prepared by Eilers & Krejcik Gaming, describe Social Plus games as “a category of casino-styled social games that leverage sweepstakes promotions to award users with real cash and/or prizes,” while still following long-standing sweepstakes rules. The rules include offering a free alternate method of entry. Companies in the space also must meet payment processor standards such as know-your-customer checks, geolocation controls, and anti-money-laundering compliance.
Political pushback against Social Plus games amid sweepstakes’ growth in Virginia and Pennsylvania
Analysts estimate players across the country will spend about $12.5 billion on Social Plus games in 2025. Of that, roughly $423 million is expected to come from Virginia and about $446 million from Pennsylvania. Virginia’s share works out to around 3.4% of the national market, supported by about 6.5 million eligible adults, relatively high disposable income, and broadband access in nearly nine out of ten households. Pennsylvania, with close to 9.8 million eligible adults, is projected to account for 3.6%.
Once prize payouts are deducted, projected 2025 net revenue lands at about $135 million in Virginia and $143 million in Pennsylvania. Although sweepstakes-style gaming has been around for more than a decade, the firm says the sector “has grown substantially over the past several years,” pointing to pandemic-era demand and rising investor interest.
Beyond consumer spending, the studies outline a broader economic ripple effect. Nationwide, Social Plus activity generates more than $1.8 billion a year in combined direct and indirect impact. That includes $1.468 billion in direct payments to U.S. companies for marketing, payment processing, and cloud services. An estimated 2,762 jobs are supported across those sectors, producing roughly $348 million in wages, with average earnings of about $125,892.
The findings arrive as policymakers debate whether to tighten the rules. In Virginia, lawmakers have weighed proposals that would effectively ban sweepstakes casinos, according to our coverage, reflecting concerns from some regulators and segments of the regulated gaming industry. In Pennsylvania, state regulators recently sent cease-and-desist letters to 18 unlicensed sweepstakes operators, signaling a more aggressive enforcement stance.
Eilers & Krejcik suggest states could capture revenue by requiring registration or licensing and applying taxes to player purchases. The Virginia analysis estimates more than $30 million a year in potential revenue under such a framework, while Pennsylvania could see over $40 million annually. Registration, the Virginia report says, would give regulators the “ability to audit operators for compliance with existing laws,” create “a cleaner path to enforcing penalties,” and improve dispute resolution.
Addressing fears that Social Plus siphons money from regulated online casinos, the researchers point to Michigan. “If Social Plus operators had a material negative impact on Michigan’s online casino market, one would expect the removal of those products to have had a positive impact on Michigan’s growth when they left. The opposite is true.” The authors add that available data “strongly imply a low likelihood” that Social Plus significantly harms regulated iGaming markets.
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