The Social and Promotional Games Assocation (SPGA) and the Social Gaming Leadership Alliance (SGLA), two groups that represent the social gaming industry, are reportedly merging amid the California State Assembly’s passing of Assemblymember Avelino Valencia’s AB 831 by a unanimous, 63-0 vote.
SPGA Will Cease To Exist As Distinct Entity
The SPGA will cease to operate as a distinct entity, as AB 831 has now been sent to the desk of Governor Gavin Newsom for approval. The bill can either be signed into law or become law without his signature. Newsom may also decide to veto the legislation.
“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.”
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.
VGW Reportedly Offering $1 Million To Tribes Who Oppose AB 831
According to reporter Victor Rocha on X, sweepstakes casino giant Virtual Gaming Worlds (VGW), the parent company of popular sweepstakes casinos Chumba Casino, LuckyLand Slots, and Global Poker, has been offering $1 million to tribes who oppose AB 831.
However, the tribes are now worried they’ll get stiffed, per Rocha.
Members of Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria gathered outside the Capitol in Sacramento earlier this month to protest the bill.
It’s unclear if each aforementioned tribe has been offered $1 million.
While the SPGA and SGLA have both long advocated for social gaming operators and the regulation of casino-style games, the groups have been unsuccessful in getting lawmakers to reject AB 831.
California is America’s largest sweeps market. Although Gov. Newsome can still veto the measure, the consolidation of the SPGA into the SGLA indicates that he will likely not.