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The Social Gaming Leadership Alliance (SGLA) has publicly criticized Governor Gavin Newsom for signing AB 831 into law, which effectively bans online social games featuring sweepstakes promotions in California.
This decision, which was confirmed last week, aligns California with Montana, Connecticut, and New Jersey as states with official sweepstakes bans. It also comes despite strong opposition from various tribal nations and other stakeholders within California.
Tribes such as the Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria have expressed concerns that this legislation will restrict economic opportunities for tribes that lack the financial resources enjoyed by more affluent gaming tribes.
Furthermore, the SGLA referenced a study by Eilers & Krejcik, which projected that AB 831 could immediately erase $1 billion from California’s economy. The state could also miss out on an estimated $200-$300 million in tax revenue each year as a result of this ban.
Jeff Duncan, Executive Director of SGLA, stated:
“Voters, players who love online social games, California tribes, and online social games operators all made their position clear: they didn’t want a ban on this popular, safe form of entertainment.”
“We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation and economic gains.”
Californians were against AB 831
Opposition to AB 831 was strong among Californians. The SGLA highlighted a nationwide poll that included a significant number of California voters, revealing that the majority of residents do not support the ban on online social games featuring sweepstakes.
The poll indicated that around 85% of Californians believe the state should modernize its laws to regulate and tax online social gaming, contrasting sharply with the outright prohibition established by the new law.
In an effort to voice their concerns, more than 20,000 residents sent over 34,000 emails and made nearly 6,500 calls to legislators and Governor Newsom, urging them to oppose AB 831.
Despite this pushback, Governor Newsom chose to sign the bill into law, which will take effect on January 1, banning all sweepstakes casino platforms. The new law also criminalizes involvement with these platforms, imposing misdemeanors that carry penalties of up to $25,000 in fines or up to a year in county jail.
In its new release, the SGLA stated that it will “continue to promote sensible regulatory frameworks that respect voter preferences, support economies, protect consumers and allow residents the right to choose their digital entertainment options.”
Source: ReadWrite
