Open letter from platform leaders urges Governor Newsom to veto ban legislation and instead regulate and tax the industry
WASHINGTON, DC – The top executives of the partners of the Social Gaming Leadership Alliance (SGLA) sent an open letter to California Governor Gavin Newsom reiterating their commitment to further contributing to California’s economy while continuing to operate the games millions of Californians enjoy.
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 highlighting the positive benefits a thriving industry can have on California’s economy and the downsides of passing a flawed bill that would ban the industry.
The reasoning includes:
- AB 831 chooses destruction over opportunity. California should embrace the revenue of online social games rather than 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 is staggering. 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. By threatening to prosecute major platforms like Google and Meta for offering sweepstake operators standard 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 remote tribes that don’t depend on geographic advantages.
The letter encourages Governor Newsom to veto the misguided legislation and emphasizes that 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 Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance. “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.”
The SGLA will continue to encourage Governor Newsom to veto AB 831 and is prepared to work with lawmakers to create regulation that supports the online social games industry and protects consumers.
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 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.
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.
