Summary
- California eagerly awaits Governor Gavin Newsom's decision on whether to ban sweepstakes.
- Many voices have risen in opposition to AB 813, warning that it could obliterate a $1 billion industry.
- Governor Newsom now has a month to make a crucial decision: to either veto, approve, or remain neutral on the bill.
The Social Gaming Leadership Alliance has expressed serious concerns about Assembly Bill 813, which is now poised to become enforceable law.
Listen to reason, SGLA urges Californian governor, lawmakers
The steps being taken could soon lead to the banning of social sweepstakes products, including casinos, in California, potentially dismantling a $1-billion industry, the SGLA warned in a press release. The hearing today revealed the committee's utter dismissal of facts, economic implications, and the voices of tens of thousands of Californians. This is all to give monopolistic power to tribes that have already poured hundreds of millions into Las Vegas and California's coastal properties, stated SGLA Executive Director Jeff Duncan. However, before this becomes reality, the fate of AB 831 rests in the hands of California Governor Gavin Newsom, who must decide whether to pass or veto the bill within 30 days. If he chooses neither, the bill automatically becomes law after that period. The SGLA is understandably concerned as lawmakers seem to be swiftly moving to curtail the industry, possibly to protect the interests of a few or due to worries about regulatory loopholes. The SGLA argues that AB 831 is misguided. Social sweepstakes casinos are entirely legal, backed by precedent, they assert. This bill isn't just about clarifying the law, it's about changing it to hand exclusivity to a few wealthy tribes while dismantling a lawful industry, Duncan emphasized. The SGLA and other proponents of the sweepstakes model are calling on lawmakers to focus on refining the tax framework governing the law rather than abolishing the industry. Eric Wright, CEO of the Kletsel Economic Development Authority, also criticized the bill, asserting that banning sweepstakes would stifle new opportunities for everyone, including tribal gaming operators.
Tribal nations are similarly not too happy with the bill’s passage
The Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria stand united in opposition. They contend that tribes with geographically advantageous lands are trying to block others from seizing new opportunities. The SGLA argues that online social games don't fall under gambling, though reports suggest otherwise, as most players engage with these platforms in hopes of winning real money, despite the platforms not broadcasting this fact. We urge Governor Newsom to veto this bill and instead pave the way for online social games to uplift economically challenged tribal nations and bolster the state's economy, positioning California as a leader in next-generation gaming technology, the SGLA declared passionately, pressing the governor to heed their call.
