The Social Gaming Leadership Alliance (SGLA) has emerged in strong opposition to California Assembly Bill 831 (AB 831), a proposal to prohibit online sweepstakes casino-style games in California.
It argues that legislation ignores economic realities and could eliminate more than $1 billion annually in direct and indirect economic activity, resulting in the state losing hundreds of millions of dollars in tax revenue each year.
Key Takeaways
- The SGLA is opposing Bill 831, which bans sweepstakes casino games in California
- An estimated $1 billion will be lost from economic activity due to the ban, according to the SGLA
- It has instead proposed a regulatory framework to support consumers and tribal sovereignty
“Today’s hearing exposed the committee’s complete disregard for facts, economic reality, and the voices of tens of thousands of Californians all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties,” said Jeff Duncan, Executive Director of SGLA and former Congressman.
AB 831 passed unanimously in the California Senate on a vote of 36-0 and then passed with Assembly approval on Sept. 12 on a vote of 63-0. The legislation now goes to Gov. Gavin Newsom, whose deadline to approve or veto it is Oct. 12. If no decision is made, the measure will become law automatically.
SGLA leadership reported that more than 16,000 Californians opposed the legislation, sending close to 33,000 emails and placing 4,500 calls to legislators. Various tribal organizations also expressed opposition, while groups like Californians United for a Responsible Budget organized in opposition to the plan.
In addition, the SGLA has stated that those for the bill have threatened those opposed with comments such as “toe tags will be helpful to identify our next of kin.”
Instead of a ban, the group calls for a regulatory framework to support consumer protections, tribal sovereignty, player choice, and economic growth through online social gaming.
California tribe partners with sweepstakes operator in opposition to bill
While a large number of tribes in California show support for AB 831, one has partnered with a sweepstakes operator in opposition.
The Kletsel Dehe Wintun Nation of the Cortina Rancheria has announced a conditional partnership with Virtual Gaming Worlds (VGW), which will allow VGW to host free-to-play social gaming and sweepstakes casinos in the state.
The Kletsel Economic Authority, which made the agreement with VGW, is among those who oppose the sweepstakes ban in the Golden State. They argue that the bill will impact smaller tribes and their ability to generate alternative revenue.
“We’ve operated in North America for more than a decade, creating not only great games, user experiences, and entertainment but ensuring this is done safely, responsibly and at the highest level of standards – in line with our core value of ‘we do what’s right’,” said Laurence Escalante, Founder and CEO of VGW.
Despite larger tribes in the state supporting AB 831, Eric Wright, CEO of Keda, stated the bill does not have full tribal backing and disadvantages smaller tribes.
“We respectfully oppose AB 831. This bill lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to operate legitimate revenue streams to support our people,” Wright added.
