The top executives of the partners of the Social Gaming Leadership Alliance (SGLA) sent an open letter to California Governor Gavin Newsom, arguing that the Golden State will miss out on millions in tax revenue if online sweepstakes gaming is outlawed.
SGLA Partners Urge California Gov. Gavin Newsom To Veto AB 831
Assembly Bill 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 Gov. Newsom decides not to sign the measure, AB 831 will become law automatically. This means a veto is the only hope for sweeps gaming in America’s 31st state.
The leading operators of online social games with sweepstakes promotions, including ARB Interactive, B-Two Operations, PlaySTUDIOS, VGW, and Yellow Social Interactive, signed onto an open letter along with SGLA Executive Director Jeff Duncan.
The top executives are urging Gov. Newsom to veto AB 831.
Letter Highlights Benefits Of Sweepstakes Gaming
According to the SGLA, the letter highlights the positive benefits that a thriving social gaming industry can have on California’s economy and the downsides of passing the “gut and amend” anti-sweepstakes bill.
The reasoning includes:
- AB 831 chooses destruction over opportunity. California should regulate online social gaming to reap the benefits instead of banning legitimate businesses.
- Operators are ready to pay. The online social games industry would “contribute at least $200-$300 million annually in new tax revenue through modern regulation and licensing.”
- The economic damage will be catastrophic. Research shows that AB 831 would immediately eliminate $1 billion in direct and indirect benefits to California.
- Californians oppose this ban. Legislators received more than 37,000 emails, calls, and tweets from California residents opposing AB 831.
- AB 831 threatens California’s tech leadership. Because major tech platforms like Google and Meta are being threatened with legal action for offering sweepstakes operators services, “AB 831 creates dangerous precedent that could stifle emerging technologies including AI, blockchain, and digital entertainment.”
- AB 831 eliminates tribal economic opportunities. This legislation would “stop the collaborative work between operators and tribal partners to create legitimate economic development pathways to less wealthy, remote tribes that don’t depend on geographic advantages.”
SGLA Partners Are Willing To Work With Lawmakers
SGLA partners are prepared to work with lawmakers to “create sensible regulation” that supports the California economy and preserves access to a fun, free-to-play form of digital entertainment.
“The leaders in online social games have made a pledge: regulate and tax our industry so California doesn’t lose access to an important revenue stream and games that Californians enjoy playing,” said Duncan.
“California has always been a leader in innovation, not a place where opportunity is shut down overnight. We urge the Governor to veto this reckless bill and work with us to create smart, consumer-focused regulation that strengthens California’s economy and protects its leadership.”
If AB 831 passes, both sweepstakes casinos and social casinos would be banned in California.