Governor Newsom signs flawed, rushed legislation into law, banning fun, free-to-play online social games with sweepstakes promotions in California for the millions who enjoy them
WASHINGTON, DC – The Social Gaming Leadership Alliance (SGLA)expresses its disappointment at California Governor Gavin Newsom signing Assembly Bill 831 (AB 831) into law, banning online social games with sweepstakes promotions in the state. Since the introduction of AB 831 in June, the SGLA, along with many California tribal nations and other groups, have been vocal in their staunch opposition to the problematic ‘gut-and-amend’ bill.
Tribes such as Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria have opposed AB 831 because it would limit economic opportunities available to tribes lacking the resources of wealthier gaming tribes and encroach on their tribal sovereignty.
Research from Eilers & Krejcik also showed AB 831 would immediately eliminate $1 billion in annual economic impact to California from online social games with sweepstakes, and California would miss out on at least $200-$300 million annually from potential regulation and taxation of the industry.
This summer, a nationwide poll with an oversample of California voters revealed that residents overwhelmingly opposed banning online social games with sweepstakes components. Instead, 85% of California voters agreed that the state should modernize and update laws to regulate and tax online social gaming. Additionally, more than 20,000 Californians wrote over 34,000 emails and made nearly 6,500 calls directly to legislators and to Governor Newsom opposing AB 831.
Despite this, the Governor signed this poorly designed bill that had zero industry consultation and was backed by conflicted proponents, impinging on Californians’ choice and hurting California’s reputation as a pro-business, pro-innovation state.
“Voters, players who love online social games, California tribes, and online social games operators all made their position clear: they didn’t want a ban on this popular, safe form of entertainment,” said Jeff Duncan, Executive Director of SGLA. “We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation and economic gains.”
The SGLA will continue to promote sensible regulatory frameworks that respect voter preferences, support economies, protect consumers and allow residents the right to choose their digital entertainment options.
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.
