Bill prioritizes special interests ahead of California’s economy, tribal opportunity, and overwhelming voter opposition
WASHINGTON, DC – Yesterday, the California Senate advanced Assembly Bill 831 (AB 831), legislation that would ban online social games with sweepstakes promotions in California. The Social Gaming Leadership Alliance (SGLA) strongly condemned the decision, warning it would jeopardize California jobs, shut out opportunities for economically disadvantaged tribal nations while benefiting wealthy gaming tribes, and ignore overwhelming voter preference for regulation and taxation of the innovative industry rather than prohibition.
“AB 831 is a fundamentally flawed proposal that serves the narrow interests of a few powerful groups while silencing the voices of millions of Californians who responsibly enjoy these games – and tribal nations who see the games as a lifeline to fund vital services,” said Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance.
“This bill threatens legitimate businesses with criminal liability, strips economically disadvantaged tribes of a key development opportunity, and ignores the potential for smart regulation to generate hundreds of millions in new tax revenue for the state. We urge the Assembly members to reject this misguided legislation and stand for equity, innovation, and tribal self-determination.”
The Senate’s advancement of AB 831 is particularly disappointing given that approximately 100 community members from financially disadvantaged tribes gathered outside the Sacramento state legislature to protest the bill on Monday, highlighting the lack of consensus among tribal nations.
“These tribal advocates traveled to the state capital to deliver a clear message: respect tribal sovereignty, protect economic rights for all tribal nations, and recognize that digital commerce opportunities directly translate to essential services like clean water, safe roads, and housing for their communities,” Duncan said. “Their unified call to ‘Stop AB 831’ and protect tribal economic rights should be prioritized above the interests of powerful, well-funded gaming operators.”
The reasons to reject AB 831 are substantial:
- For remote and economically disadvantaged tribal communities, digital opportunities like online social games with sweepstakes represent a much needed and important pathway for economic diversification.
- Read the opposition letters from Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria.
- Tribal members protested at the State Capitol urging their legislators to vote NO on AB831. Video and photos available here.
- If it becomes law, AB 831 would immediately eliminate $1 billion in annual economic impact to California.
- Online social games could drive an additional $200–$300 million or more in new state revenue each year.
- An SGLA poll found 85% of California voters agree California should modernize and update laws to regulate and tax online social gaming, providing more money for state budgets, not ban them.
- Millions of adults in California enjoy playing the games and don’t want to see them taken away.
- Passage of the bill would not only take current and potential new revenue out of the California economy, but it is also anticipated to incur “potentially significant” costs to the California Department of Justice, the state funded trial court system and counties throughout the state to enforce and adjudicate, should it become law, according to the Senate Appropriations Committee bill analysis.
Powerful, well-funded tribes are pushing AB 831, against the wishes of tribal nations and California voters. The SGLA remains committed to working with policymakers to advance a modern regulatory framework that expands opportunities for every tribal nation, protects consumers, preserves choice, and supports California’s 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.
