Publishers Clearing House (PCH), a leading sweepstakes industry giant, sent a letter Wednesday to the California Senate Appropriations Committee “to express our strong opposition to Assembly Bill 831.”
Publishers Clearing House Strongly Opposes California AB 831
In March, PCH announced a partnership with SCCG Management “to explore new social gaming monetization opportunities,” and since July, PCH has been owned by ARB Interactive, Inc., a social casino company.
This means PCH could eventually become a future sweepstakes casino operator.
If passed, AB 831 would outlaw company sweepstakes promotions and sweeps platforms that offer free-to-play casino-style games via a dual-currency model.
“This bill seeks to criminalize legitimate online social games and sweepstakes promotions — marketing tools used by mainstream American brands like McDonald’s, Pepsi, and PCH to engage millions of consumers, including over 1.5 million Californians,” Owen O’Donoghue, the CEO of PCH, wrote to Chair Anna Caballero and the committee members.
“PCH opposes AB 831 because it lacks thorough stakeholder input, economic analysis, or evidence of harm. Rather, this bill was generated by anti-competitive motives from brick-and-mortar casino operators, who seek to prohibit companies from marketing to Californians using decades-old, lawful, tools — sweepstakes promotions — modified for the 21st century.
“Contrary to claims that this industry is unregulated or operates in the shadows, PCH operates transparently under established consumer protection laws, not gaming laws. We support reasonable regulation and urge a collaborative approach to develop a framework that protects consumers, preserves entertainment choices, and unlocks significant economic opportunities for California.”
PCH Calls For California Lawmakers To Regulate Sweeps
More importantly, the letter calls for lawmakers to regulate sweeps platforms instead of outright banning them, arguing that such gaming sites could generate up to $149 million annually in tax revenue for California.
O’Donoghue also cited public opposition to AB 831, stating that more than 20,000 Californians have sent emails and more than 3,000 have placed phone calls to legislators in support of social and sweeps sites.
“We respectfully request that you oppose AB 831 in its current form, as it criminalizes a lawful marketing tool used by mainstream businesses. Instead, we urge the California Senate to work with our industry to develop sensible regulatory frameworks that enhance consumer protections, preserve entertainment options, offer valuable economic benefits for California, and build upon our existing responsible gaming standards,” the letter concludes.
This news comes a little over a week after VGW, the Australian-headquartered operator of Chumba Casino, LuckyLand Slots, and Global Poker, announced a multi-year partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe in California.
The deal, signed with the Kletsel Economic Development Authority (KEDA), will involve VGW working with the tribe’s economic team to offer casino-style games, including sweepstakes promotions, to Californians.