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The Social Gaming Leadership Alliance (SGLA) has expressed strong disapproval following the recent approval of Assembly Bill 831 (AB 831), which aims to ban online social games featuring sweepstakes promotions in California.
Last week, the California Assembly Governmental Organization Committee became the latest legislative body to back the bill, leading to sharp criticism from the SGLA. According to the organization, if AB 831 becomes law, it could wipe out over $1 billion in annual economic activity and deny California hundreds.
Executive Director Jeff Duncan criticized the community for overlooking critical facts and economic data, suggesting that they prioritized the interests of large gaming tribes that have already made substantial investments in Las Vegas and California’s coastal areas.
He went on to warn that this legislation would unfairly limit opportunities for other tribal groups and urged Governor Gavin Newsom to veto the bill if it moves forward.`
Bill has ulterior motives, claims SGLA
Duncan strongly challenged the idea that sweepstakes casinos operate illegally, arguing that if that were true, there would be no need for new legislation like AB 831.
He contended that the real aim of the bill is to change the law in a way that benefits a select group of wealthy tribes while effectively shutting down a legal industry that has thrived.
The SGLA pointed out significant issues with how the committee handled the bill. They noted that over 16,000 Californians had voiced their opposition, sending nearly 33,000 emails and making more than 4,400 calls, yet their concerns were largely ignored.
Additionally, they accused Committee Chair Blanca Rubio of falsely claiming that she had never received a comprehensive economic analysis, despite having been given one directly and it being publicly available during the discussions.
Ban causes divide among tribes
Eric Wright, CEO of the Kletsel Economic Development Authority, emphasized that while larger tribes benefit greatly from gaming revenues, smaller tribes and those in less favorable locations rely on social gaming as one of their few economic options.
He warned that AB 831 would worsen economic inequalities by cutting off opportunities for rural and struggling tribal nations.
Several tribes, including the Big Lagoon Rancheria, Kletsel Dehe Wintun Nation, the Mechoopda Indian Tribe of Chico Rancheria, and the Sherwood Valley Rancheria of Pomo Indians, have voiced their opposition to the bill. They argue that it threatens to deepen existing disparities and undermine the sovereignty of tribal nations.
Even with opposition from multiple tribes, the California Senate advanced AB 831 with a unanimous 36-0 vote last week.
Senate amendments still need approval
Since being introduced in the Assembly early this year, the bill has undergone key amendments in the Senate, including a prohibition on sweepstakes casinos. After passing through several committees without any opposition, the measure is now back on its way to the Assembly for approval.
Before its third reading, senators made revisions to the bill to ensure that state lottery games and traditional sweepstakes operated by major companies like McDonald’s and Starbucks were excluded. These changes came in response to concerns that the bill could only target these well-established entities.
The movement to ban sweepstakes casinos in California is in line with a growing trend seen across the country. States such as Connecticut, Montana, and New Jersey have already implemented similar bans, while regulators in other areas have issued cease-and-desist orders against operators.
Source: NEXT.io
