Following California Assembly passage of Assembly Bill 831, the Social Gaming Leadership Alliance (SGLA) reached out to Governor Gavin Newsom’s office to ensure a veto of the “gut and amend” anti-sweepstakes bill.
“It is incredibly disappointing that the California Assembly decided to pass AB 831. Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy,” said Jeff Duncan, Executive Director of SGLA.
“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
SGLA Hopes California Governor Will Protect Sweeps Gaming
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. Gov. Newsom has until Oct. 12 to approve or veto the bill.
If no decision is made, the measure will become law automatically.
AB 831 will outlaw sweepstakes casinos and the dual-currency system in the Golden State.
The measure will also make it illegal “for any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within the state.”
AB 831 was amended into an anti-sweeps bill in the California State Senate, clarifying that the measure will not affect state lottery games, licensed cardrooms, or traditional sweepstakes promotions.
85% Of California Voters Believe Government Should Regulate Social Gaming
The updated language in AB 831 states: “(a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.”
It also reads: “(b) It is unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”
The SGLA cited a recent poll, which found 85% of California voters agree the state government should “modernize and update laws to regulate and tax online social gaming.”
Many tribes also oppose AB 831 due to the legislation’s economic implications for less wealthy tribal nations.
Tribes include Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria.
“We are confident Gov. Newsom will see through their smokescreen and urge a sensible veto of this flawed bill,” the SGLA added in its news release.