During Tuesday’s California Senate Governmental Organization Committee hearing on Assembly Bill 831, the Social Gaming Leadership Alliance (SGLA) urged lawmakers to reject the measure and protect access to online sweepstakes casinos and sweepstakes promotions by companies like Marriott, Microsoft, and Starbucks.
SGLA Referenced Four Consumer Safeguards
The SGLA cited four consumer safeguards that its partners utilize, including:
- Strict age verification using robust identity and geolocation technology and processes to prevent access to games and platforms by minors.
- Comprehensive security protocols including anti-money laundering (AML) procedures and “Know Your Customer” (KYC) frameworks.
- Responsible gameplay tools including spending limits, self-exclusion options, and one-click access to responsible gaming resources.
- Financial protections through partnerships with major payment networks that require the same security standards as major retailers.
“This bill isn’t about protecting players. It is about protecting incumbents from competition,” said Jeff Duncan, Executive Director of SGLA and former Congressman.
“It would override longstanding legal precedents affirming the legitimacy of sweepstakes promotional models that are used across industries including food, retail, entertainment, and political campaigns.”
Over 20,000 Californians Have Submitted Letters Opposing AB 831
AB 831 was introduced as a last-minute “gut-and-amend” with “no formal study, stakeholder engagement, or public input,” the SGLA asserted.
The opposition to the legislation extends far beyond the gaming industry, as more than 20,000 letters, calls, and text messages from California residents were sent to state legislators to express their disapproval of the bill.
Bill Gantz, a partner at Duane Morris who is a lead trial lawyer and authority on gaming law in the U.S. testified on behalf of the SGLA, stating:
“Social casino freemium games are legitimate entertainment services that have been available in California since 2012. They are entirely legal and use the same model of selling gold coins that many other social casino platforms – including Light & Wonder and San Manuel Yaamava’ Resort’s PlayOnline – use.”
SGLA, SPGA Lead Fight Against Anti-Sweepstakes Bill
San Manuel is a proponent of AB 831, while Light & Wonder has been a vocal campaigner against free-to-play casino-style games in the sweepstakes industry. The measure is also backed by the California Nations Indian Gaming Association (CNIGA).
“SGLA remains committed to working with state leaders to develop a smart and modern regulatory framework that prioritizes consumer safety, promotes innovation, and protects California’s digital economy,” the SGLA said in a press release.
In addition, this news comes on the heels of the Social and Promotional Games Association (SPGA) sending a formal letter to the California lawmaker who introduced AB 831, Assemblymember Avelino Valencia, urging the politician to remove his bill.
The SPGA described AB 831 as “too vague, too rushed, and too risky” in the letter, and stated that “the Legislature should take a more thoughtful and transparent approach and make this a 2-year bill.” The measure puts all types of promotions, rewards apps, and marketing campaigns at legal risk.