WASHINGTON, DC – Following California Assembly passage of Assembly Bill 831 (AB 831), advancing legislation that would ban online social games with sweepstakes casinos in the state, the Social Gaming Leadership Alliance (SGLA) sets its sites on working with Governor Newsom’s office to ensure a veto of the gut and amend bill.
“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.”
Voters are opposed to a ban. A recent poll found 85% of California voters agree California should modernize and update laws to regulate and tax online social gaming.
AB 831 has far-reaching economic implications not only for tribes but also for the state. If it becomes law, AB 831 would immediately eliminate $1 billion in annual economic impact to California, research shows. The state would also miss out on at least $200-$300 million annually that regulation and taxation of the industry would bring to California.
In addition, many tribes have come out against AB 831 due to the legislation’s economic implications and divide amongst tribal nations. This includes Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria. More than 100 community members from rural tribes gathered outside the Sacramento state legislature to protest the bill on Monday while dozens of tribal members voiced their opposition to AB 831 at the Assembly Governmental Organization Committee hearing on Thursday.
Powerful, well-funded tribes, and operators of social casinos like Play Online by Yaamava and Jackpot Party, who see online social games as potential competition, are pushing AB 831 against the wishes of tribal nations and California voters.
We are confident Gov. Newsom will see through their smokescreen and urge a sensible veto of this flawed bill.
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.
