The Social Gaming Leadership Alliance (SGLA) has urged California lawmakers to reject an amended bill proposing to ban sweepstakes casinos in the state.
The SGLA claims that Assembly Bill 831 would “expose a wide range of legitimate businesses to unprecedented criminal liability.”
SGLA Executive Director and former Congressman Jeff Duncan wants lawmakers to put the bill on hold so that more discussions may be held, rather than rushing through legislation in an amendment.
Duncan stated, “This rushed proposal not only cuts Californians off from the free-to-play games they enjoy and a potential revenue stream for the state, but it also threatens to criminalize the businesses that drive California’s economy.”
“We urge California lawmakers to take California businesses out of the crosshairs by making AB831 a two-year bill, allowing for a more thoughtful, consultative and collaborative process.”
Amended Bill Supported By Tribal Leaders
The bill’s author, Assemblymember Avelino Valencia, proposed the legislation in a bid to protect tribal gaming, which has exclusive rights to casinos in California.
Valencia stated, “We cannot look the other way while these platforms exploit legal grey areas. These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
The bill is co-sponsored by the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN).
Yuhaaviatam Tribal Council of San Manuel Chairwoman Lynn Valbuena commented, “For over 25 years, Tribal governments like Yuhaaviatam of San Manuel Nation, have upheld the will of California voters by operating gaming with integrity. That commitment has allowed us to reinvest in our communities, boost local economies, and support essential public services on reservations and in partnerships across the state.”
Voters rejected a proposal to legalize sports betting in California in 2022, and the bill clamps down on operators that offer players the chance to use virtual coins to bet on sports, as well as casino games.
If the legislation is passed, violators face up to $25,000 in fines and 1 year in county jail. In addition, it also targets sites that actively promote or support unregulated gambling platforms, which include payment processors, geolocation services, platform providers, gaming content suppliers, and affiliate marketers.
SGLA Claims Widespread Opposition To Bill
An SGLA press release stated, “The opposition to AB831 extends far beyond industry concerns, with more than 20,000 letters, calls and texts from California residents being sent to state legislators to express their opposition to the bill and urge preservation of access to safe, legal online social games in the past week alone.”
Bill Gantz, a partner at Duane Morris, testified on behalf of the SGLA, stating: “Social casino freemium games are legitimate entertainment services that have been available in California since 2012. They are entirely legal and use the same model of selling gold coins that many other social casino platforms – including Light & Wonder and San Manuel Yaamava’ Resort’s PlayOnline – use.”
The bill is scheduled for another hearing in the Senate Public Safety Committee this week. If approved by the Public Safety Committee, the bill will move to Senate Appropriations, followed by a floor vote.
Having already passed in the Assembly, it would then be up to Gov. Gavin Newson to sign off on the legislation. The SGLA will no doubt urge the Governor to veto the bill if it does make it that far.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
