Bill would ban legitimate online games while shielding unregulated competitors and threatening California innovation; thousands of Californians already voicing their opposition to this flawed Bill
WASHINGTON, DC — During today’s California Senate Governmental Organization Committee hearing on AB831, the Social Gaming Leadership Alliance (SGLA) urged lawmakers to reject the bill and protect access to legitimate, free-to-play digital entertainment enjoyed by millions of Californians.
AB831 would ban online social games that offer legal “freemium plus sweepstakes” options, even though the bill’s most vocal backers operate similar games of their own. Furthermore, SGLA partners’ games maintain comprehensive consumer safeguards, 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.”
The legislation was introduced as a last-minute “gut-and-amend” with no formal study, stakeholder engagement, or public input. The bill also introduces criminal liability provisions for tech companies, payment processors, and media platforms, raising serious concerns about unintended consequences for California’s innovation economy.
The rushed process was evident in today’s hearing, where senators repeatedly asked for amendments and clarification on basic provisions, with some reserving the right to change their votes pending further stakeholder input. As Senator Ochoa Bogh noted, “this is what happens when we don’t go through the proper process” – underscoring the need for proper legislative process and stakeholder engagement before rushing to judgment on such complex issues.
The opposition to AB831 extends far beyond industry concerns, with more than 20,000 letters, calls and texts from California residents being sent to state legislators to express their opposition to the bill and urge preservation of access to safe, legal online social games in the past week alone.
Bill Gantz, a partner at Duane Morris and a well-known speaker 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.”
San Manuel is a proponent of AB831, while Light & Wonder has been a vocal campaigner against the social games with sweepstakes industry, typically spreading misleading or even outright false information.
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.
To learn more about SGLA, please visit our website at www.SGLeadership.org and our social channels at LinkedIn, X, Facebook and BlueSky.
Contact:
Laurie Rossbach
Partner, Seven Letter
202.258.7810
Laurie@SevenLetter.com
About the Social Gaming Leadership Alliance
The Social Gaming Leadership Alliance (SGLA) champions social gaming operators who offer innovative, free-to-play entertainment experiences enjoyed by millions of Americans while promoting responsible digital entertainment. Our partners set the standard for innovation, world class games and the responsible use of digital marketing including sweepstakes promotions. We advocate for appropriate oversight that recognizes the unique entertainment value of social online games, protects players, platforms and the community, and promotes responsible gameplay.
The SGLA’s operator partners are VGW, PLAYSTUDIOS, Yellow Social Interactive, ARB Interactive and B-Two Operations, representing Chumba Casino, Luckyland Slots, Global Poker, Pulsz, Pulsz Bingo, Modo Casino, McLuck, HelloMillions and SpinBlitz. Other partners include major payments provider Nuvei. The SGLA’s advocacy and standards focus exclusively on online social games. Our advocacy does not extend to operators offering sports products or transacting in cryptocurrency.
