The Social and Promotional Games Association (SPGA) strongly opposes a new bill in California sponsored by San Manuel Entertainment Authority (SMEA), the same group that operates Yaamava’ Resort & Casino.
The legislation, backed by the California Nations Indian Gaming Association (CNIGA), would outlaw online sweepstakes casinos and sweepstakes promotions by companies like Marriott, Microsoft, and Starbucks.
California Anti-Sweepstakes Casino Bill Targets Celebrity Promoters
Howard Glaser, Global Head of Government Affairs at Light & Wonder, reported the news on LinkedIn, posting:
“A bill introduced today with the backing of the California Nations Indian Gaming Association follows similar lines as the New York legislation passed unanimously this week, making it unlawful to facilitate or promote the operation of illegal online sweepstakes casinos by any ‘person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.’”
Glaser went on to mention: “The language of the bill suggests that California celebrities pushing sweeps casinos – such as Drake, Paris Hilton and Ryan Seacrest – would be subject to liability for their roles in illegal casino advertising and promotion.”
SMEA also runs a social casino — PlayOnline — that offers sweepstakes promotions. Their promotions page lists “The Factory Sweepstakes” as the first item. On their “Fall Surprizes Sweepstakes” page, players are also able to win thousands in real-money casino credits.
SPGA Says Bill Stifles Innovation, Hurts Digital Entertainment Industry
The SPGA is “deeply troubled” by California lawmakers’ decision to “attempt a backroom ban on promotional sweepstakes” through a controversial “gut and amend” maneuver hours before a legislative deadline.
“This isn’t how sound policy gets made,” said a spokesperson for the SPGA. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.
“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”
The SPGA also said the bill was “rushed through without stakeholder engagement” and “threatens to criminalize lawful social sweepstakes platforms.”
“These games are free to play, widely used, and built with robust consumer safeguards like age-gating, geolocation, and anti-fraud protections,” the Association continued.
SPGA Urges Gov. Newsom To Spurn Measure
In addition, the legislation is so “broadly written” that it could include sweepstakes promotions by companies like Marriott, Microsoft, and Starbucks that use “chance-based giveaways” to fuel popular rewards programs.
“California has long stood at the forefront of technology and digital entertainment. But this bill undermines that legacy, ceding power to entrenched players at the expense of consumers, startups, and basic fairness,” the SPGA added in its news release.
“We urge Governor Newsom and other leaders to reject this rushed and hypocritical approach, and instead pursue a transparent, fact-based dialogue about the future of legal digital innovation in California.”