Bill prioritizes special interests over California’s economy, tribal equity and consumer choice
WASHINGTON, DC – The Social Gaming Leadership Alliance (SGLA) expresses its disappointment at the California Assembly Governmental Organization (GO) Committee’s passing of Assembly Bill 831 (AB 831), legislation that would ban online social games with sweepstakes promotions in California.
The SGLA warned that moving forward with AB 831 would eliminate more than $1 billion in direct and indirect economic activity in the state each year and deprive California of hundreds of millions of dollars in potential new revenue annually.
“Today’s hearing exposed the committee’s complete disregard for facts, economic reality, and the voices of tens of thousands of Californians all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “All the while passage of this bill would deny our tribal partners the very opportunities the proponents themselves have used. If this damaging bill moves through the Assembly, we hope Gov. Newsom will see it for the poor policy it is and veto AB 831.”
“As the committee heard today, the entire premise of this bill is false,” Duncan continued. “The proponents have consistently said that online sweepstakes are illegal throughout this process. If that were true, then what is the need for AB831? The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy tribes exclusivity while shutting down a legal industry.”
The hearing exposed two glaring failures by the committee:
- 16,000+ Californians ignored: More than 16,000 Californians wrote nearly 33,000 emails and made over 4,400 calls directly to legislators opposing this legislation. These voices, along with organizations like Californians United for a Responsible Budget, appear to have been systematically ignored.
- Chair denies facts she was personally given: Committee Chair Blanca Rubio falsely claimed she had “never received detailed economic analysis” despite being personally handed the comprehensive study in a previous meeting and the study has been publicly available throughout the process.
Eric Wright, CEO of the Kletsel Economic Development Authority, testified that while “certain established gaming tribes generate hundreds of millions annually,” struggling tribes “didn’t win a geographic lottery” and would lose “one of the few viable economic pathways available.” “It’s deeply troubling that tribes who’ve already achieved massive success through location advantages now seek to slam the door shut on emerging opportunities for those of us who weren’t blessed with prime real estate,’’ he said.
Tribal nations including Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria have consistently opposed AB 831, emphasizing that the bill would deepen economic disparities, marginalize rural nations and erode tribal sovereignty.
As the committee heard, the desperation of AB 831’s supporters has even devolved into threats, with proponents saying that “toe tags will be helpful to identify our next of kin.”
Online social games are not gambling. Our operators offer free-to-play, online social games that millions of American and Californian adults enjoy as a form of fun, safe entertainment. SGLA continues to advocate for a modern regulatory framework that ensures robust consumer protections, supports tribal self-determination, preserves choice for players, and harnesses the economic potential of online social games to strengthen 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.
